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Financial Management MCQ

  1. The cost of debt capital is calculated on the basis of ................
  2. What is factoring?
  3. Which of the following is the goal of financial management?
  4. .................... is the limitation of Traditional approach of Financial Management.
  5. Financial management mainly focuses on ...............
  6. Heterogeneous cash flows can be made comparable by discounting technique or compounding technique.
  7. Which of the following is capital market line?
  8. A risk free security has __________ variance.
  9. ................... is called as dividend ratio method.
  10. Ke = DPS/MP x 100, is used for calculating .................
  11. Which of the following is capital employed?
  12. The formula used to calculate current ratio is ....................
  13. ................ is an example of fixed asset.
  14. Current assets are also referred to as ................
Last Updated: Feb 22, 2023,
Posted in Interview Questions,
61 Questions
Financial Management MCQ

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Practice here the Best Financial Management MCQ Questions, that check your basic knowledge of Financial Management abilities. This MCQ Test contains the 50+ multiple choice questions based on the Financial Management. These Mcqs are very popular & helpful for the preparation of the Financial Management Exam/Interview. You can also download the Financial Management MCQ PDF completely free.

  • Net proceeds
  • Annual Interest
  • Annual Depreciation
  • Capital
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  • Production Plan
  • New Financial Service
  • Cost of Sales
  • All of the above
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  • Maximise the wealth of Equity shareholders
  • Maximise the wealth of Preference Shareholders
  • Maximise the wealth of Debenture holders
  • All of the above
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  • More emphasis on long term problems
  • Ignores allocation of resources
  • One-sided approach
  • All of the above
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  • Efficient management of every business
  • Brand dimension
  • Arrangement of funds
  • All elements of acquiring and using means of financial resources for financial activities
Download Free : Financial Management MCQ PDF
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  • True
  • False
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  • Capital allocation line of a market portfolio
  • Capital allocation line of a risk free asset
  • Both first & second options
  • None of the above
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  • 0
  • 2
  • 4
  • 6
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  • Debt Equity Method
  • Dividend Yield Method
  • Equity Method
  • Asset Method
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  • Reserve
  • Capital structure
  • Depreciation
  • Cost of equity share capital
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  • Cash + Bank
  • Assets + Cash
  • Shareholders Funds + Long Funds
  • All of the above
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  • Current liabilities / Current assets
  • Current assets / Current liabilities
  • Inventory / Current liabilities
  • Current liabilities / Inventory
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  • Value stock
  • Live stock
  • Income stock
  • none of these
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  • Inventory
  • Working capital
  • Livestock
  • Investments
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  • Bank Credit
  • Public Deposit
  • Commercial Paper
  • All of the above
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  • true
  • false
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  • To Maximize the return
  • To Minimize the risk
  • To maximize the wealth of owners
  • To maximize profit
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  • Bonds
  • Machines
  • Stocks
  • Both Bonds & Machines
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  • Negotiable, Liquid
  • Liquid, Marketable
  • liquid, Personal
  • None of these
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  • Pooled investments.
  • Reduced expenses
  • manage portfolios
  • All of the above
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  • Foreign exchange inflow – Foreign exchange outflow
  • Balance of trade + Net earnings on invisibles
  • balance of current account + Balance of capital account + Statistical discrepancy
  • Export of goods – Import of goods
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  • applies only to investment in fixed assets
  • has the prospect of long-term benefits.
  • has the prospect of short-term benefits.
  • is only undertaken by large corporations
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  • fixed assets.
  • total assets.
  • current assets
  • current assets minus current liabilities.
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  • total assets minus fixed assets.
  • current assets minus current liabilities
  • current assets minus inventories
  • current assets.
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  • long-term debt, preferred stock, and common stock equity
  • shareholders' equity
  • total assets minus liabilities
  • All of the above
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  • Security Financing
  • Internal Financing
  • Loans Financing
  • International Financing
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  • Inflow of funds
  • Source of fund
  • Use of fund
  • All of the above
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  • Rs.18,000
  • Rs.(-) 45,000
  • Rs.(-)18000
  • Rs.45,000
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  • 2:1
  • 1:1
  • 5:1
  • 2.2
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  • the creation of value for shareholders.
  • the number and types of products or services provided by the firm.
  • the dollars profits earned by the firm.
  • investment, financing, and asset management
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  • stable prices
  • more price change
  • standing prices
  • mature prices
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  • Divided to Stock ratio
  • Cash flow to price ratio
  • sales to growth ratio
  • price to cash flow ratio
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  • Competitive Companies
  • Benchmark Companies
  • Analytical Companies
  • Return Companies
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  • 0.025
  • 0.023
  • 0.081
  • None of these
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  • Negative Economic Value Added
  • Positive Economic Value Added
  • Zero Economic Value Added
  • Percent Economic Value Added
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  • Negative Numbers
  • Positive Numbers
  • Hurdle Numbers
  • Relative Numbers
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  • Relative Number
  • Negative Number
  • Hurdle Number
  • Positive Number
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  • Stable Prices
  • More Price change
  • Standing Prices
  • Mature Prices
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  • Default Bonds
  • Corporation Bonds
  • Risk Bonds
  • Zero Risk Bonds
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  • Central Bank
  • Savings Bank
  • Commercial Bank
  • Co-operative Bank
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  • Cash
  • Inventory
  • Investments
  • Owner's Equity
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  • Shareholders.
  • Stakeholders.
  • Board of directors.
  • The vice president of finance.
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  • It can be depreciated
  • It have a useful life of more than one year
  • It is used in the ordinary operations of a business
  • All of the above
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  • the risky portfolio
  • the riskfree asset
  • the risky portfolio and the index
  • The risk free asset and the risky portfolio combined
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  • determining whether or not a project should be accepted
  • determining the amount of equipment needed to complete a job
  • determining the amount of long-term debt required to complete a project
  • determining whether to pay cash for a purchase or use the credit offered by the supplier
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  • revenue
  • societal benefit
  • shareholder wealth
  • earnings per share
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  • IRR
  • dollar-weighted
  • geometric average
  • arithmetic average
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  • Common stock
  • Corporate bonds
  • Commercial paper
  • Retained earnings
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  • Cash
  • Prepaid expenses
  • Accounts receivable
  • Marketable securities
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  • It must be payable in cash.
  • It results from past transactions or events.
  • It arises from present obligations to other entities.
  • It represents a probable, future sacrifice of economic benefits.
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  • Declaration Date
  • Payment date
  • Outstanding stock
  • Date of Record
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  • current assets
  • current liabilities
  • cash and inventory
  • None of the above
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  • It does not require a constant effort
  • It requires input from senior management
  • Within a small organization it can be managed by a small group of key employees
  • It involves monitoring and adjusting criteria to reflect the strategic focus of the organization
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  • Should the firm borrow more money?
  • Should the firm acquire new equipment?
  • Should customers be given 30 or 45 days to pay for their credit purchases?
  • All of the above
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  • Bonds
  • Common stock
  • Treasury stock
  • Preferred Stock
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  • Turnover Ratios
  • Profitability Ratios
  • Financial Leverage Ratios
  • All of the above
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  • Cash
  • Revenue
  • Payables
  • Expenses
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  • Directly proportional to the resistance
  • Directly proportional to the pressure gradient
  • Inversely proportional to the pressure gradien
  • Directly proportional to the pressure gradient and the resistance
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  • cash
  • stock​
  • building
  • debtors
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  • True
  • False
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