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Financial Accounting End Term: Undated, Set FN (undated)

Question 1

+1 markOne correct option

A company earns $5.00 per share and pays dividends of $1.50 per share. An investor wants to know what proportion of earnings is distributed as dividends. Which ratio should be calculated?

  1. A

    Dividend Yield Ratio

  2. B

    Dividend Payout Ratio

  3. C

    Price-Earnings Ratio

  4. D

    Earnings Yield Ratio

Question 2

+1 markOne correct option

A company receives ₹50,000 as a new loan from the bank. What is the immediate effect?

  1. A

    Assets increase, and liabilities increase

  2. B

    Assets increase, and equity increases

  3. C

    Assets decrease, and liabilities increase

  4. D

    Assets increase, and revenue increases

Question 3

+1 markOne correct option

During 2024, Patty's Pizza reported net income of $4,212 million, interest expense of $167 million and income tax expense of $1,372 million. During 2023, Patty's reported net income of $3,568 million, interest expense of $163 million and income tax expense of $1,424 million. The times interest earned ratios for 2024 and 2023, respectively, are closest to:

  1. A

    32.2 and 29.4 times

  2. B

    28.4 and 23.8 times

  3. C

    34.4 and 31.6 times

  4. D

    34.1 and 26.6 times

37 more questions in this paper

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More on the Financial Accounting End Term Undated Set FN paper

The IIT Madras BS Financial Accounting (Financial Accounting) End Term paper sat on Undated, in the Undated, set FN: 40 questions for 40 marks in 180 minutes. The first 3 questions are below. Sign in with Google — it is free — to see the whole paper with its answers and explanations, in learning mode or as a timed mock test.

FeatureFinancial Accounting End Term Undated Set FN at a glance
TermUndated
SubjectFinancial Accounting
Questions40
Marks40
Duration180 min
MCQ40
Negative markingNo negative marking.
Updated

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