Match List-I with List-II, List-I (Concepts of Financial management), List-II (Computation), (A) Net Working Capital, (I) Debt/Equity, (B) Financial Leverage, (II) (Profit after tax + Depreciation + Interest + Non Cash exp.) / (Pref. Div + Interest + Repayment obligation), (C) Interest Coverage Ratio, (III) Current Assets-Current Liabilities, (D) Debt Service Coverage Ratio, (IV) EBIT/Interest, Choose the correct answer from the options given below:

Question

Match List-I with List-II | List-I (Concepts of Financial management) | List-II (Computation) | |---|---| | (A) Net Working Capital | (I) Debt/Equity | | (B) Financial Leverage | (II) (Profit after tax + Depreciation + Interest + Non Cash exp.) / (Pref. Div + Interest + Repayment obligation) | | (C) Interest Coverage Ratio | (III) Current Assets-Current Liabilities | | (D) Debt Service Coverage Ratio | (IV) EBIT/Interest | Choose the correct answer from the options given below:

Accepted Answer

(A) - (III), (B) - (I), (C) - (IV), (D) - (II)

Answer

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

Answer

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

Answer

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

List-I	List-II
Decisions	Factors affecting the Decisions
---	---
(A) Fixed Capital Decision.	(I) Diversification
(B) Capital Structure Decision	(II) Cash flows of the project
(C) Working Capital Decision	(III) Control on Business
(D) Capital budgeting decision	(IV) Business Cycle

List-I (Concepts of Financial management)	List-II (Computation)
(A) Net Working Capital	(I) Debt/Equity
(B) Financial Leverage	(II) (Profit after tax + Depreciation + Interest + Non Cash exp.) / (Pref. Div + Interest + Repayment obligation)
(C) Interest Coverage Ratio	(III) Current Assets-Current Liabilities
(D) Debt Service Coverage Ratio	(IV) EBIT/Interest

Solution

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CUET Business Studies Past Year Questions (Topic-Wise)