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

Take Financial Management MCQ & Online Test to Test your Knowledge

We have listed below the Best Financial Management MCQ Questions, that check your basic knowledge of Financial Management abilities. This Financial Management MCQ Online Test contains the 40 best Financial Management MCQ, that are very helpful for the preparation of the Financial Management Exam/Interview. You have to select the right answer to every question to check your final preparation. Apart from this, you can also download below 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
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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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