Question
1. EW Partners, a main methodology and the executives counseling firm is setting up its financial plans for the year to 31 March 2021. One
1. EW Partners, a main methodology and the executives counseling firm is setting up its financial plans for the year to 31 March 2021. One of accomplice 'W' is worried about liquidity, he contended, that a firm with satisfactory liquidity has less danger of being not able to meet their liabilities than an illiquid one. Where a firm has sufficient liquidity, there is additionally the chance of improved productivity through diminished interest cost or expanded interest pay, along with more noteworthy monetary adaptability to arrange upgraded terms with providers and lenders or partake in new business openings. As needs be, he wants to lessen the association's CC to zero by 30 September 2020 and to have a positive money total of $1,45,000 before the year's over.
Required
Investigate, feedforward control and input control in setting of the above data.
Answer all the MCQ in proper sequence in reference to managerial accounts:
2. Working influence emerges in light of:
(a) Fixed Cost of Production,
(b) Fixed Interest Cost,
(c) Variable Cost,
(d) None of the above mentioned
3. Monetary Leverage emerges in light of:
(a) Fixed expense of creation,
(b) Variable Cost,
(c) Interest Cost,
(d) None of the abovementioned
4. Working Leverage is determined as:
(a) Contribution EBIT,
(b) EBITPBT,
(c) EBIT Interest,
(d) EBIT Tax
5. Monetary Leverage is determined as:
(a) EBIT Contribution,
(b) EBIT PBT,
(c) EBIT Sales,
(d) EBIT Variable Cost
6. Which blend is by and large useful for firms
(a) High OL, High FL
(b) Low OL, Low FL,
(c) High OL, Low FL,
(d) None of these
7. Joined influence can be utilized to gauge the connection between:
(a) EBIT and EPS,
(b) PAT and EPS,
(c) Sales and EPS,
(d) Sales and EBIT
8. FL is zero if:
(a) EBIT = Interest,
(b) EBIT = Zero,
(c) EBIT = Fixed Cost,
(d) EBIT = Pref. Profit
9. Business danger can be estimated by:
(a) Financial influence,
(b) Operating influence,
(c) Combined influence,
(d) None of the abovementioned
10. Monetary Leverage estimates connection between
(a) EBIT and PBT,
(b) EBIT and EPS,
(c) Sales and PBT,
(d) Sales and EPS
11. Utilization of Preference Share Capital in Capital design
(a) Increases OL,
(b) Increases FL,
(c) Decreases OL,
(d) Decreases FL
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