FIN 320/FIN415 Multiple choice Questions (MCQs). Chapter #03 1. Which one of the following terms is applied to the financial planning method which uses th projected sales level as the basis for determining changes in balance sheet and income stateme account values? A percentage of sales method B. sales dilution method C. sales reconciliation method 2. Other things being equal, you will prefer to invest in a company that has A. Current ratio more than 1 and debt equity ratio less than 1 B. Debt equity ratio more than I and current ratio less than 1 C. Both current ratio and debt equity ratio more than 1 D. Both current ratio and debt equity ratio less than 1 E. None of the above 3. Debt-asset ratio for a company cannot be more than 1: a. True b. False 4. The end goal of planners should ideally be to achieve: A. Maximisation of shareholder value B. Maximisation of growth rate C. Maximisation of organisational efficiency D. Maximisation of customer satisfaction E. None of the above 5. Which one of the following decisions has to be established for developing an explicit fina plan? A. Capital budgeting decision B. Dividend decision C. Working capital decision D. All of the above E. None of the above 6. In a situation where sustainable growth rate is to be calculated, which one of the followi ratio is assumed to remain unchanged? A. Inventory turnover ratio B. Current ratio C. Debt-equity ratio D. Acid-test ratio E. None of the above