Financial Management MCQ with Answers

  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 -
  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 _____________ .
Financial Management MCQ

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  • 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
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  • Capital allocation line of a market portfolio
  • Capital allocation line of a risk free asset
  • Both 1 and 2
  • All 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
  • Calculating capital structure
  • Depreciation
  • calculating 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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  • To Maximize the return
  • To Minimize the risk
  • To maximize the wealth of owners
  • To maximize profit
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  • Bonds
  • Machines
  • Stocks
  • 1 and 2
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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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  • 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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