Business Studies

Business Finance

Medium

Identify the ratio with which the following formula is associated:

$\frac{Profit\ after\ tax + Depreciation + Interest + Non\text{-}cash\ exp.}{Pref.\ Div + Interest + Repayment\ obligation}$

Interest Coverage Ratio

Debt Service Coverage Ratio

Return on Investment

Financial Leverage

✅ Correct Option: 2

The formula divides cash profits available for servicing debt (profit after tax plus depreciation, interest and non-cash expenses) by total debt-service obligations (preference dividend, interest and repayment). This measures ability to meet all debt commitments, which is the Debt Service Coverage Ratio.

2023: 29 May Shift 2

Identify the rights provided to consumers by the Consumer Protection Act 2019

A. Right to Safety

B. Right to be Informed

C. Right to choose

D. Right to be heard

E. Right to be assured

Choose the correct answer from the options given below:

2026: 13 May Shift 2

Banks and other financial institutions look for a satisfactory _________ before agreeing to make a loan.

2026: 29 May Shift 1

Which of the following statements is NOT correct about capital structure?

2022: 28 May Shift 2

Match List - I with List - II.

List - I	List - II
(A) The mix between owners' and borrowed funds	(I) Financial Planning
(B) Quantum of finance to be raised from various long term sources	(II) Investment Decisions
(C) How the firm's funds are invested	(III) Capital Structure
(D) Financial blue print of an organisation	(IV) Financing Decisions

Choose the correct answer from the options given below :

2025: 13 May Shift 2

The Debt Service Coverage Ratio of company A is higher than that of company B. What does this indicate?

2026: 12 May Shift 1

Match List-I with List-II

List-I (Financial Decision)	List-II (Factor affecting)
(A) Dividend decision	(I) Shareholders' preference
(B) Working Capital Decision	(II) Credit availed
(C) Fixed Capital Decision	(III) Control considerations
(D) Financing Decision	(IV) Financing alternatives

Choose the correct answer from the options given below:

Solution

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Keyboard Shortcuts

CUET Business Studies Past Year Questions (Topic-Wise)