Scdl Financial Management part2
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Multiple Choice Multiple Answer |
Question | In financial analysis, generally the following leverages are computed |
Correct Answer | Combined leverage , Operating leverage , Financial leverage |
Your Answer | Combined leverage , Operating leverage , Financial leverage |
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True/False |
Question | Interest in provision for doubtful debts should be added back in order to find out cash from operations |
Correct Answer | True |
Your Answer | False |
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Select The Blank |
Question | Retained earnings is a source of ________ finance |
Correct Answer | Internal |
Your Answer | Short term |
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Select The Blank |
Question | ________ are basically interested in the solvency position of the organisation |
Correct Answer | Financial institution lending long term finance |
Your Answer | Financial institution lending long term finance |
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Select The Blank |
Question | The current ratio of ________ is considered to be standard |
Correct Answer | 2 : 1 |
Your Answer | 2 : 1 |
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True/False |
Question | The assumptions of capital structure theories is that Corporate Income Tax does not exist |
Correct Answer | True |
Your Answer | True |
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Multiple Choice Single Answer |
Question | Preference shares which stay with the company as long as it is a going concern are known as |
Correct Answer | Perpetual preference shares |
Your Answer | Non-cumulative preference shares |
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Multiple Choice Multiple Answer |
Question | Shortcomings of Debentures from company's point of view |
Correct Answer | The debenture interest and capital repayment are obligatory payments , Debenture financing enhances the financial risk associated with the firm |
Your Answer | The debenture interest and capital repayment are obligatory payments , Debenture financing enhances the financial risk associated with the firm |
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Multiple Choice Multiple Answer |
Question | The recommendations of the Chhore committee included |
Correct Answer | increasing role of short term loans and bill finance and curbing the role of cash credit limits , the bank should appraise and fix separate limits for normal non-peak levels and also peak levels |
Your Answer | increasing role of short term loans and bill finance and curbing the role of cash credit limits , the bank should appraise and fix separate limits for normal non-peak levels and also peak levels |
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Multiple Choice Multiple Answer |
Question | International financial function of the organisation comprises of : |
Correct Answer | Study of flow of funds beyond national boundaries , Exchange of currencies |
Your Answer | Study of flow of funds beyond national boundaries , Exchange of currencies |
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Multiple Choice Single Answer |
Question | That part of the inventory which does not become a part of final product but are required for production process is termed as |
Correct Answer | Stores and supplies |
Your Answer | Raw Material |
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Multiple Choice Single Answer |
Question | If the services enjoyed by the company are not required to be paid for immediately then it is termed as |
Correct Answer | Outstanding expenses |
Your Answer | Trade Credit |
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Multiple Choice Single Answer |
Question | Capital cost is |
Correct Answer | cost on the use of additional capital to support credit sales |
Your Answer | cost on the use of additional capital to support credit sales |
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True/False |
Question | Wealth maximization goal is only an extension of Profit maximization goal of the organisation |
Correct Answer | True |
Your Answer | True |
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Select The Blank |
Question | The ________ has been empowered to order the company that fails to repay any deposit to make the repayment of such deposits |
Correct Answer | Company Law board |
Your Answer | Company Law board |
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Select The Blank |
Question | Factoring indicates the relationship between ________ and a business organisation |
Correct Answer | Financial institutions |
Your Answer | Financial institutions |
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Select The Blank |
Question | The most crucial financial decisions of the organisation are taken by ________ |
Correct Answer | Board of Directors |
Your Answer | Board of Directors |
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Multiple Choice Multiple Answer |
Question | The term cost of capital is important for a company basically for the following purposes |
Correct Answer | It is used as a tool for screening the investment proposals , It is used as the capitalisation rate to decide the amount of capitalisation in case of a new concern , It provides useful guidelines for determining the optimal capital structure |
Your Answer | It is used as a tool for screening the investment proposals , It is used as the capitalisation rate to decide the amount of capitalisation in case of a new concern , It provides useful guidelines for determining the optimal capital structure |
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Multiple Choice Single Answer |
Question | The capital of Samir Ltd. is as follows : Equity shares of Rs. 100 each Rs. 10,00,000/-, 12% Preference shares of Rs. 10 each Rs. 5,00,000/-, Profit after tax Rs. 4,00,000/-, Equity dividend paid 20%, Market price of equity share Rs. 120. Calculate Price Earnings ratio |
Correct Answer | 3.52 |
Your Answer | 3.52 |
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True/False |
Question | In an organisation, Dividend distribution is the function of a Finance Controller |
Correct Answer | False |
Your Answer | False |
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Select The Blank |
Question | The dealing with the financial matters of the government is termed as ________ field of finance |
Correct Answer | Public |
Your Answer | Public |
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Multiple Choice Single Answer |
Question | Dividends are usually paid on |
Correct Answer | Paid up capital |
Your Answer | Issued capital |
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Select The Blank |
Question | Cost management is the function of a ________. |
Correct Answer | Treasurer |
Your Answer | Treasurer |
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Select The Blank |
Question | Preparation of Financial plan at the time of company promotion is ________ duty of the finance executive |
Correct Answer | Non-recurring |
Your Answer | Non-recurring |
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Multiple Choice Multiple Answer |
Question | The effects of undercapitalisation are |
Correct Answer | Increase tax liability of the company , Demand of the employees to increase wages |
Your Answer | Increase tax liability of the company , Demand of the employees to increase wages |
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Multiple Choice Single Answer |
Question | Capitalisation is |
Correct Answer | Total amount of long term funds available to the company |
Your Answer | Total amount of long term funds available to the company |
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True/False |
Question | The operating profit is computed as Sales Revenue Less Variable Operating Cost Less Fixed Operating cost |
Correct Answer | True |
Your Answer | True |
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True/False |
Question | Economic order quantity is based on the assumption that the demand for the material concerned is uniform throughout a year |
Correct Answer | True |
Your Answer | True |
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Select The Blank |
Question | A list of all the material required for a job, process or production order is termed as ________. |
Correct Answer | Bill of materials |
Your Answer | Bill of materials |
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Match The Following |
Question | Correct Answer | Your Answer | |
Nayak committee | to recognize the contribution made by the SSI sector to the economy | to recognize the contribution made by the SSI sector to the economy | |
Dahejia committee | to examine the extent to which credit needs of industry and trade are likely to be inflated and how such trends could be checked | to examine the extent to which credit needs of industry and trade are likely to be inflated and how such trends could be checked | |
Chhore committee | to review mainly the system of cash credit management policy by banks | to review mainly the system of cash credit management policy by banks | |
Marathe committee | to review the credit authorization scheme | to review the credit authorization scheme | |
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Multiple Choice Single Answer |
Question | For the calculation of Operating Profit / Loss , Depreciation on fixed assets should be |
Correct Answer | added to the Net Profit as per Profit and loss account |
Your Answer | added to the Net Profit as per Profit and loss account |
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Select The Blank |
Question | Depreciation is sometimes treated as ________ funds |
Correct Answer | source |
Your Answer | application |
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Multiple Choice Multiple Answer |
Question | The Economic Order Quantity model is based on the assumption of |
Correct Answer | Placing and receiving orders is without any delay , Ordering costs and carrying costs associated with the orders are variable in nature and they behave exactly opposite to each other , The demand for the material concerned is uniform throughout the year |
Your Answer | Placing and receiving orders is without any delay , Ordering costs and carrying costs associated with the orders are variable in nature and they behave exactly opposite to each other , The demand for the material concerned is uniform throughout the year |
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True/False |
Question | One of the basic objectives of cash management is to maintain the optimum cash balance |
Correct Answer | True |
Your Answer | False |
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Multiple Choice Multiple Answer |
Question | Situation of capital rationing may involve problems in the form of |
Correct Answer | Project Indivisibility , Mutually dependent project , Multi period projects |
Your Answer | Project Indivisibility , Mutually dependent project , Multi period projects |
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Multiple Choice Multiple Answer |
Question | The functions of a Finance Controller are : |
Correct Answer | Budgeting , Record Keeping , Annual Reporting |
Your Answer | Budgeting , Record Keeping , Annual Reporting |
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True/False |
Question | Re-order level is the highest level of inventory to be maintained above which the inventory should not rise |
Correct Answer | False |
Your Answer | False |
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Multiple Choice Single Answer |
Question | Increase in a fixed asset due to purchase is |
Correct Answer | Use of funds |
Your Answer | Use of funds |
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Multiple Choice Multiple Answer |
Question | The recommendations of the Tandon committee included |
Correct Answer | the norms for inventory and accounts receivables for as many as 15 industries excluding heavy engineering industry , that the amount of bank credit should not be decided by the capacity of the borrower to offer security to the banks but it should be decided in such a way to supplement the borrower's resources in carrying a reasonable level of current assets in relation to his production requirement |
Your Answer | the norms for inventory and accounts receivables for as many as 15 industries excluding heavy engineering industry , that the amount of bank credit should not be decided by the capacity of the borrower to offer security to the banks but it should be decided in such a way to supplement the borrower's resources in carrying a reasonable level of current assets in relation to his production requirement |
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True/False |
Question | Internal rate of return considers time value of money |
Correct Answer | True |
Your Answer | True |
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Multiple Choice Single Answer |
Question | 'Yield on capital' is another term employed for |
Correct Answer | Return on Capital invested |
Your Answer | Return on Capital invested |
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Select The Blank |
Question | The analytical method of inventory control which aims at concentrating efforts in those areas where attention is required most is termed as ________ |
Correct Answer | ABC Analysis |
Your Answer | ABC Analysis |
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Select The Blank |
Question | To meet the working capital needs of the company, banks may grant the working capital term loans for a period of ________ |
Correct Answer | 3 to 7 years |
Your Answer | 3 to 7 years |
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Select The Blank |
Question | The concept of watered capital is confined to the time of ________ of the company |
Correct Answer | Promotion |
Your Answer | Liquidation |
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Select The Blank |
Question | In case of Mortgage, the party who transfers the interest is called ________ |
Correct Answer | Mortgager |
Your Answer | Mortgager |
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Match The Following |
Question | Correct Answer | Your Answer | |
Classification of ratios | Profitability ratio | Profitability ratio | |
Advantages of Ratio Analysis | It helps in planning and forecasting | It helps in planning and forecasting | |
Limitation of Ratio Analysis | Facts only those which can be expressed in financial terms are considered | Facts only those which can be expressed in financial terms are considered | |
Precautions before using ratio analysis technique | Impact of the inflationary conditions of changing price levels to be taken in account | Impact of the inflationary conditions of changing price levels to be taken in account | |
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Multiple Choice Single Answer |
Question | Working Capital is computed as |
Correct Answer | Current assets - Current liabilities |
Your Answer | Current assets - Current liabilities |
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