Scdl Financial Management part2

Scdl Financial Management part2    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    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    Select The Blank   Question   Retained earnings is a source of ________ finance   Correct Answer   Internal   Your Answer   Short term    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    Select The Blank   Question   The current ratio of ________ is considered to be standard   Correct Answer   2 : 1   Your Answer   2 : 1    True/False   Question   The assumptions of capital structure theories is that Corporate Income Tax does not exist   Correct Answer   True   Your Answer   True    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    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    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    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    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    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    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    True/False   Question   Wealth maximization goal is only an extension of Profit maximization goal of the organisation   Correct Answer   True   Your Answer   True    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    Select The Blank   Question   Factoring indicates the relationship between ________ and a business organisation   Correct Answer   Financial institutions   Your Answer   Financial institutions    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    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    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    True/False   Question   In an organisation, Dividend distribution is the function of a Finance Controller   Correct Answer   False   Your Answer   False    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    Multiple Choice Single Answer   Question   Dividends are usually paid on   Correct Answer   Paid up capital   Your Answer   Issued capital    Select The Blank   Question   Cost management is the function of a ________.   Correct Answer   Treasurer   Your Answer   Treasurer    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    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    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    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    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    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    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    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    Select The Blank   Question   Depreciation is sometimes treated as ________ funds   Correct Answer   source   Your Answer   application    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    True/False   Question   One of the basic objectives of cash management is to maintain the optimum cash balance   Correct Answer   True   Your Answer   False    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    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    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    Multiple Choice Single Answer   Question   Increase in a fixed asset due to purchase is   Correct Answer   Use of funds   Your Answer   Use of funds    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    True/False   Question   Internal rate of return considers time value of money   Correct Answer   True   Your Answer   True    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    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    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    Select The Blank   Question   The concept of watered capital is confined to the time of ________ of the company   Correct Answer   Promotion   Your Answer   Liquidation    Select The Blank   Question   In case of Mortgage, the party who transfers the interest is called ________   Correct Answer   Mortgager   Your Answer   Mortgager    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    Multiple Choice Single Answer   Question   Working Capital is computed as   Correct Answer   Current assets - Current liabilities   Your Answer   Current assets - Current liabilities

 

The objective of funds flow statement may be to find out uses of loans raised by the business
	True False