QUESTION 17 Which of the following items are included in Balance Sheet? Revenue Cash Cost of Inventory sold Cost of Goods Sold QUESTION 18 Which of the following is not part of Liability? Bonds Payable Notes Payable Income Tax Payable Short-Term Investment QUESTION 19 Which of the following is not an activity reported in Cash Flow Statement? Financing Activity Banking Activity Investing Activity Operating Activity QUESTION 20 Inventory Conversion Period is a ratio of Inventory and Average Payables Average Inventory Average Receivables Average Cost of Goods Sold QUESTION 21 What is the best description of Payables Deferreal Period? Length of time between receiving invoices for purchase of goods and services and payment of cash for them Length of time between purchase of goods and services and selling of the finished product to customers Length of time between purchase of goods and services and receiving payment for them from customers Length of time between purchase of goods and services and payment of cash for them QUESTION 22 Present Value of Perpetuity will increase if Interest rate (1) per year decereaes Frequency of Payment increases Payment amount decreases Interest rate (1) per year increases QUESTION 23 What is the correct statement regarding coupon rate of a Bond? Coupon rate is used to calculate present value of the bond Coupon rate is used to calculate interest paid each year Coupon rate is another term for yield to maturity of bond Coupon rate is used to calculate par value of the bond QUESTION 24 Real risk free rate, r", is 0.5% and inflation premium (IP) is 1.5%. What can be inferred from this statement? Expected return on any bond isssued is likely 2% plus market risk premium Expected return on any bond isssued is likely 2% plus default risk premium Expected return on any bond isssued is likely 2% Expected return on government issued bonds (T-bill) is likely 2% QUESTION 25 Stand Alone Risk is appicable for Portfolio of stocks Individual stock or bond Government issued bonds portfolio Stocks that are not traded in stock exchange