Correct Answer:
D. 30%
Payout ratio = 30,000 / 100,000 = 30%.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
Dividends are Rs. 30,000 and net income is Rs. 100,000. The dividend payout ratio is:
Related MCQs
The primary goal of financial management is generally considered to be:
A.
Maximization of current year profit
B.
Minimization of taxes only
C.
Maximization of shareholders' wealth
D.
Maximization of sales
Correct answer is:
C. Maximization of shareholders' wealth
Do you agree with this answer?
Diversification can eliminate:
A.
Unsystematic (specific) risk
B.
Systematic risk
C.
Inflation risk of the whole economy
D.
Market risk entirely
Correct answer is:
A. Unsystematic (specific) risk
Do you agree with this answer?
Excess expenditure over the grant approved by the legislature must be:
A.
Ignored
B.
Hidden in other accounts
C.
Regularized through an excess grant approved by the National Assembly
D.
Recovered from the Auditor-General
Correct answer is:
C. Regularized through an excess grant approved by the National Assembly
Do you agree with this answer?
Total debt is Rs. 400,000 and total equity is Rs. 200,000. The debt-to-equity ratio is:
A.
0.5
B.
2.0
C.
1.5
D.
3.0
Correct answer is:
B. 2.0
Do you agree with this answer?
The ability-to-pay principle of taxation says that:
A.
People should pay tax according to benefits received
B.
Everyone pays the same amount
C.
People with higher income or wealth should pay more tax
D.
Only businesses pay tax
Correct answer is:
C. People with higher income or wealth should pay more tax
Do you agree with this answer?
An audit committee is mainly responsible for:
A.
Preparing the financial statements
B.
Setting the audit fees without any approval
C.
Selling the company's assets
D.
Overseeing financial reporting, internal control and the audit process on behalf of the board
Correct answer is:
D. Overseeing financial reporting, internal control and the audit process on behalf of the board
Do you agree with this answer?
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