E5E6 telecom core feb28

5. _______________ calculated to measure the financial risk and the firm's ability to use debt for the benefit of shareholders

• A. Current ratios
• B. Leverage ratios
• C. Liquidity ratios
• D. Turnover ratios

6. What is Total Assets turnover ratio

• A. Sales/Average total assets
• B. Avg. Inventory/Sales
• C. Both 1 and 2
• D. Purchases/Average Payables

7. Which analysis evaluates revenue and output generated by the firm's assets

• A. Activity analysis
• B. Liquidity analysis
• C. Solvency analysis
• D. None of the above

8. Which of the following is the correct accounting equation?

• A. Capital plus Liabilities = Assets
• B. Assets plus Liabilities = Capital
• C. Capital plus Asset = Liabilities
• D. All of these

9. State True or False in respect of statement 1 and 2: 1. Items in the balance sheet are listed based on conservative principles, 2. The balance sheet cannot provide the value of the firm's assets, liabilities, and equity on a particular date.

• A. T, T
• B. T, F
• C. F, T
• D. F, F

10. Telecom Industry is highly ______________ intensive industry

• A. Labour intensive
• B. Machine intensive
• C. Public intensive
• D. Capital intensive

11. Which of the following are the merits of the payback period method

• A. Simple to understand
• B. Profit comes after the payback period
• C. Comparable to Break Even Point
• D. All of the above

12. Which of the following statements is correct?

• A. By analyzing financial statements and computing key ratios, the performance of a firm or organization can be assessed.
• B. External groups cannot perform financial analysis.
• C. By analyzing financial statements and computing key ratios, the performance of a firm or organization cannot be assessed.
• D. Without analyzing financial statements and computing key ratios, the performance of a firm or organization can also be assessed.

16. _________________ determines a company's health and stability, providing an understanding of how the company conducts its business

• A. Technical analysis
• B. Financial analysis
• C. Cashflow analysis
• D. Income statement analysis

17. Costs that arise where production of more than one service takes place simultaneously and jointly.

• A. Fixed cost
• B. Common cost
• C. Joint cost
• D. Direct cost