Question A.

1. Sam needed to purchase portions of EL which has a scope of $ 411 to $ 592 every month later. The current cost per share is $ 421. Her intermediary advises her that the cost regarding this offer would sore be able to up to $ 522 inside a month or somewhere in the vicinity, so she should purchase a one-month CALL of EL. To be reasonable in purchasing the call, the offer cost ought to be more than or possibly $ 522 the affirmation of which couldn't be given by her specialist.

Despite the fact that she comprehends the vulnerability of the market, she needs to know the likelihood of achieving the offer cost $ 592 so that purchasing of a one-month CALL of EL at the execution cost of $ 522 is advocated. Exhortation her. Face the challenge free revenue to be 3.60% and e0.036 = 1.037.

Answer all the MCQ in proper sequence in reference to managerial accounts:

2. Two essential proportions of liquidity are :

(A) Inventory turnover and Current proportion

(B) Current proportion and Quick proportion

(C) Gross Profit proportion and Operating proportion

(D) Current proportion and Average Collection period

3. Current Ratio is :

(A) Solvency Ratio

(B) Liquidity Ratio

(C) Activity Ratio

(D) Profitability Ratio

4. Current Ratio is :

(A) Liquid Assets/Current Assets

(B) Fixed Assets/Current Assets

(C) Current Assets/Current Liabilities

(D) Liquid Assets/Current Liabilities

5. Fluid Assets do exclude :

(A) Bills Receivable

(B) Debtors

(C) Inventory

(D) Bank Balance

6. Ideal Current Ratio is :

(A) 1 : 1

(B) 1 : 2

(C) 1 : 3

(D) 2 : 1

7. Working Capital is the :

(A) Cash and Bank Balance

(B) Capital acquired from the Banks

(C) Difference between Current Assets and Current Liabilities

(D) Difference between Current Assets and Fixed Assets

8. Current resources incorporate just those resources which are required to be acknowledged inside ... ..

(A) 3 months

(B) a half year

(C) 1 year

(D) 2 years

9. The ... of a business firm is estimated by its capacity to fulfill its momentary commitments as they become due.

(A) Activity

(B) Liquidity

(C) Debt

(D) Profitability

10. Ideal Quick Ratio is :

(A) 1 : 1

(B) 1 : 2

(C) 1 : 3

(D) 2 : 1

11. Fast Assets do exclude

(A) Cash close by

(B) Prepaid Expenses

(C) Marketable Securities

(D) Trade Receivables