Monday, 16 November 2015
Thursday, 12 November 2015
PE Ratio and Future Growth Example
PE Ratio and Future Growth Example
PE
Ration provides useful information about the future growth or prospectus of the
company, for example a company with high P/E ratio means, it has bright future
prospectus, this concept can be explained by the following example
Example
Ali
& Company reported an EPS for 2013 = .40
Fayaz
& Company reported an EPS 2013 = .60
both companies
quoted price for 2013 was 30
Calculate
P/E ratio and comment?
Solution
P/E
Ratio = Market Price/EPS
ALI
& Co = 30/.4 =75
Fayaz
& Co = 30/.6=50
Fayaz
company has better p/e ratio, it means it has bright future aspect than Ali
& company, this is the reason that despite lower earnings of Fayaz , it
market price is equal to Ali & Co.
Monday, 9 November 2015
In agency theory conflict between management and ownership is resolved
In agency theory conflict between management and ownership is resolved
1.
protecting shareholder interest
2.
pursuing self interest by management
3.
balance approach
4. employees satisfactionAnswer is at the end
Answer is 3
In agency theory board of director works in the best interest of
In agency theory board of director works in the best interest of
1.
employees
2.
shareholder
3.
customer
4.
creditor
a
Answer is 2
In agency theory Board of director are agents of
In agency theory Board of director are agents of
1.
Employees
2.
Customer
3.
Shareholder
4.
All of above
answer is give at the end
Answer is 3
Management and ownership are two separate areas under
Management and ownership are two separate areas under
1.
agency theory
2.
stakeholder theory
3.
both
Answer is 1
Who creates public welfare organization
Who creates public welfare organization?
1.
Shareholders
2.
Federal Government
3.
Local Government
4.
both 2 and 3
Answer is 4
What is objective of public welfare organization
What is objective of public welfare organization?
1.
Welfare of customer
2.
Welfare of employees
3.
Welfare of society
4.
all of above
Answer is 3
What is single objective commercial organization
What is single objective commercial organization?
1.
maximum profit objective
2.
maximum welfare objective
3.
customer satisfaction objective
4.
all above
Answer is 1
How wealth of shareholder can be increased
How wealth of shareholder can be increased
1.
Share value increases
2.
Dividend Growth
3.
Both
Answer
is 3
Commercial organization primary objective is
Commercial organization primary objective is
1.
Maximize profit
2.
Welfare of Society
3.
Environmental protection
4.
all of above
Answer is 1
Thursday, 5 November 2015
Cash Based system does not record
Cash Based system does not record
1.
Liability in time
2.
Expense in time
3.
income in time
4. All aboveAnswer is 4
Accrual system record Transactions on bases of
Accrual system record Transactions on bases of
1.
Cash received or Paid
2.
Transaction occurrence bases
3.
Management Choice
4. Accountant convenience
Answer is 2
What is standard Accounting Period
What is standard Accounting Period?
a.
3 months
b.
6 months
c.
12 month
d.
every month
Answer is C
Accounting reports are useful for
Accounting reports are useful for
1.
Management
2.
Employee
3.
Creditor
4.
All
Answer is D
Which one is recognized accounting System
Which one is recognized accounting System?
1.
Accrual
2.
Cash based
3.
Both
Answer is 1
In Which Cost Financial accounting Deals in
In Which Cost Financial accounting Deals in
1.
Past Cost
2.
Future Cost
3.
Both Past & Future
Answer is 1
Subscribe to:
Comments (Atom)