Top 150+ Solved Cash Flow MCQ Questions Answer
Q. Which of the following are assumptions for break-even analysis?
a. Elements of cost cannot be divided in different groups.
b. Fixed cost remains certain from zero production to full capacity.
c. Behavior of different costs is linear
d. Selling per price unit remains constant.
Q. Which of the following are limitations of break-even analysis?
a. Static concept
b. Capital employed is taken into account.
c. Limitation of non-linear behavior of costs
d. Limitation of presence of perfect competition
Q. Using equation method, Break-even point is calculated as
a. Sales = Variable expenses + Fixed expenses + Profit
b. Sales = Variable expenses + Fixed expenses - Profit
c. Sales = Variable expenses - Fixed expenses + Profit
d. None of the above
Q. Given selling price is Rs 10 per unit, variable cost is Rs 6 per unit and fixed cost isRs 5,000. What is break-even point?
a. 500 units
b. 1,000 units
c. 1,250 units
d. None of the above
Q. Contribution is also known as
a. Contribution margin
b. Net Margin
c. Both a and b
d. None of the above
Q. Given selling price is Rs 20 per unit, variable cost is Rs 16 per unit contribution is
a. Rs 1.25 per unit
b. Rs 4 per unit
c. Rs 0.8 per unit
d. None of the above
Q. Risk of two securities with different expected return can be compared with:
a. Coefficient of variation
b. Standard deviation of securities
c. Variance of Securities
d. None of the above
Q. A portfolio having two risky securities can be turned risk less if
a. The securities are completely positively correlated
b. If the correlation ranges between zero and one
c. The securities are completely negatively correlated
d. None of the above.
Q. Efficient frontier comprises of
a. Portfolios that have negatively correlated securities
b. Portfolios that have positively correlated securities
c. Inefficient portfolios
d. Efficient portfolios
Q. Efficient portfolios can be defined as those portfolios which for a given level of riskprovides
a. Maximum return
b. Average return
c. Minimum return
d. None of the above
Q. Capital market line is:
a. Capital allocation line of a market portfolio
b. Capital allocation line of a risk free asset
c. Both a and b
d. None of the above
Q. The point of tangency between risk return indifferences curves and efficient frontier highlights:
a. Optimal portfolio
b. Efficient portfolio
c. Sub-optimal portfolio
d. None of the above