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True or False

1. Most common partnership arrangement carries limited liability to partners.

2. Equity is a measure of monetary contributions which have been made directly or indirectly on behalf of the owners of company.

3. The stock market tends to move up when inflation goes up.

4. Growth in sales volume prevents shortage of funds.

5. The contribution margin is equivalent to price per unit minus total costs per unit.

6. A risky financial plan will employ long-term financing for fixed assets, enduring current assets, and a portion of temporary current assets.

7. For most firms, the primary motive for holding cash is the transaction motive.

8. Around 40% of short-term financing is in form of accounts payable or trade credit.

9. The interest factor for the present value of single amount is the inverse of the future value interest factor.

10. The fact that small businesses are usually illiquid doesn’t affect their valuation process.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M94242

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