Correct Answer:
A. 75 days
CCC = 60 + 45 - 30 = 75 days.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
Inventory days are 60, receivable days are 45 and payable days are 30. The cash conversion cycle is:
Related MCQs
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?
In public sector internal control, the main purpose of segregation of duties is to:
A.
Increase the number of staff only
B.
Reduce the risk of error, fraud and misappropriation by dividing incompatible functions
C.
Avoid the need for budgets
D.
Speed up audits
Correct answer is:
B. Reduce the risk of error, fraud and misappropriation by dividing incompatible functions
Do you agree with this answer?
Who is primarily responsible for preparing the financial statements?
A.
Management of the entity
B.
The external auditor
C.
The tax authority
D.
The internal auditor only
Correct answer is:
A. Management of the entity
Do you agree with this answer?
A bond with a 10% coupon will sell at par if the market interest rate is:
A.
8%
B.
10%
C.
12%
D.
5%
Correct answer is:
B. 10%
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The present value of a perpetuity paying Rs. 5,000 per year at a discount rate of 10% is:
A.
Rs. 5,000
B.
Rs. 50,000
C.
Rs. 500
D.
Rs. 55,000
Correct answer is:
B. Rs. 50,000
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Cost of goods sold is Rs. 600,000 and average inventory is Rs. 100,000. Inventory turnover is:
A.
0.17 times
B.
60 times
C.
5 times
D.
6 times
Correct answer is:
D. 6 times
Do you agree with this answer?
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