Question: 35. Which of the following statements is true? Select one: a. Diana, the business owner of Diana Beauty, sold the unused printer: Use of cash.

35. Which of the following statements is true?

Select one:

a. Diana, the business owner of Diana Beauty, sold the unused printer: Use of cash.

b. Excel Corporation just received loan disbursement from Maybank Berhad: Use of cash.

c. Shell Corporation buy back some of their existing shares: Source of cash.

d. Nasir paid in full the amount due to its supplier: Use of cash.

37. Beta of T-Bill is 0.

Select one:

True

False

38. ______________ is the easiest method to use in capital budgeting analysis. However, this method ignores the time value of money concept. It measures how soon the firm is able to recover their initial investment cost.

Select one:

a. Profitability Index

b. Net present value

c. Payback period

d. Internal rate of return

39. Which of the following statements are not true about par value?

i) Always higher than current bond price

ii) Always lower than current bond price

iii) Same with current bond price

iv) Same with coupon amount

Select one:

a. i, ii and iii

b. None of the above

c. ii, iii and iv

d. All of the above

40. Poor current ratio is when the ratio is below 1.0.

Select one:

True

False

41. Which of the following statements are not true about bond?

i) As interest rate increase, current bond price increase.

ii) As interest rate decrease, current bond price decrease.

iii) As interest rate increase, current bond price decrease.

iv) As interest rate decrease, current bond price increase.

Select one:

a. i and iv

b. i and ii

c. iii and iv

d. ii and iii

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