Class 12 Finance Model Question Set C

Define business finance.

Mention any two major financial statements.

What is meant by quick ratio?

Differences between common stock and debt capital.

Define optimal capital structure.

What is a coupon bond?

Mention any two types of investment proposals.

What is net working capital?

State the meaning of cash dividend.

If a company has total debt of Rs. 800,000, of which 35% is long-term debt, calculate its short-term debt.

If US$ 1 = Rs. 134, calculate the amount of US dollars equivalent to Rs. 67,000.

How business finance is interrelated with economics? Explain.

How income statement is prepared? Describe with suitable example.

Clarify the sources of fund based on time and ownership.

Explain the importance of investment decision.

How much amount of breakeven point in rupees and operating fixed cost, if unit selling price Rs. 60 and unit variable cost Rs. 40 with break-even point is 8,000 units.

A manufacturing enterprise reports annual sales of Rs. 800,000 and turns over its inventory 8 times per year. The company takes 30 days on average to collect its accounts receivable and defers its trade payable payments for 20 days. Assuming a 360-day operational year, determine:

(a) The Inventory Conversion Period (ICP)

(b) The Cash Conversion Cycle (CCC)

Describe the chronological steps and formal corporate procedure involved in declaring and paying dividends to shareholders.