MGT201 Quiz 1 Solution and Discussion

The ____________ presents a company’s financial position at the specified date.

Which of the following statements is true for “Portfolio Diversification”?

@zareen said in MGT201 Quiz 1 Solution and Discussion:
The formula to calculate future value of an amount using continuous compounding is:
Future Value (FV) = PV x [1 + (i / n)](n x t) Calculating the limit of this formula as n approaches infinity (per the definition of continuous compounding) results in the formula for continuously compounded interest: FV = PV x e (i x t), where e is the mathematical constant approximated as 2.7183.

The formula to calculate future value of an amount using continuous compounding is:

What is the additional amount a borrower must pay to lender to compensate for assuming the risk associated with nonpayment?

Suppose sales of Company “S” have increased from Rs. 500,000 to Rs. 650,000 after 1 year. What will be the sale growth rate of Company S?

An ____________is a series of fixed payments, which might be over a fixed number of years, or over the lifetime of an individual, or both.
Annuity due
Ordinary annuity
Annuity
All of the given options 
Identify that which of the following allows depicting graphically the timing of cash flows along with its nature, as either inflows or outflows?
Cash flow diagram
Cash flow diagram
Cash flow diagram
Cash flow diagram 
The value of cost of Goods Sold varies because of:
LIFO method of inventory recording
FIFO method of inventory recording
Double declining method of depreciation
All of the given options 
The ____________ presents a company’s financial position at the specified date.
Income statement
Balance sheet
Statement of shareholders’ equity
Statement of cash Flows 
Which of the following is NOT the step of Percentage of sales to be used in Financial Forecasting?
Estimate yearbyyear Sales Revenue and Expenses
Estimate Levels of Investment Needs required to Meet Estimated Sales
Estimate the Financing Needs
Estimate the Financing Needs 
Suppose Ali has deposited Rs. 5,000 in bank account for which bank has promised to pay him 10% interest compounded annually. Ali will have ____ in the account after 1 year.
an amount more than Rs. 5,000
an amount less than Rs. 5,000
an amount equal to Rs. 5,000
None of the given options 
@zaasmi said in MGT201 Quiz 1 Solution and Discussion:
Which of the following rule is applied in constant rupee approach of balance sheet?
Constant Rupee Approach: In constant rupee approach, two balance sheets of the same company for different times are compared at a specific time and inflationary adjustments are made.
The balance sheet must follow the following formula:Assets = Liabilities + Shareholders’ Equity

Which of the following rule is applied in constant rupee approach of balance sheet?
Two balance sheets of the same company for different times are compared at a specific time and inflationary adjustments are made
Two balance sheets of different companies for different times are compared at a specific time and inflationary adjustments are made
Two balance sheets of the same company for different times are compared at a specific time and regulatory adjustments are made
Two balance sheets of the same company for different times are compared at a specific time and regulatory adjustments are made

@zareen said in MGT201 Quiz 1 Solution and Discussion:
Dear Students,
This is to inform that Quiz # 01 will be opened on November 20, 2020 and last date to attempt quiz will be November 24, 2020 .
Quiz will be based on Multiple Choice Questions (MCQs) covering video Lectures 1 to 7.
If you failed to attempt the quiz in given time then no retake or off line quiz will be held as compensation/replacement.
For detailed instructions view instruction in quiz tab.