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Multiple Choice Single Answer |
Question | The capacity of the existing owners of the company to retain control over operations of the company is termed under |
Correct Answer | Control factor |
Your Answer | Control factor |
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Multiple Choice Single Answer |
Question | The entire requirement of working capital arises due to the |
Correct Answer | time gap involved in various stages of the cycle |
Your Answer | time gap involved in various stages of the cycle |
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True/False |
Question | The term Accrued Income and Outstanding Income have synonymous meaning |
Correct Answer | False |
Your Answer | False |
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Select The Blank |
Question | ________ will be shown as source of funds net of proposed dividend |
Correct Answer | Operating Profit |
Your Answer | Earning after tax |
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Multiple Choice Multiple Answer |
Question | Overall profitability ratio includes |
Correct Answer | Return on Asset , Return on Shareholders Funds |
Your Answer | Return on Asset , Return on Shareholders Funds |
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Multiple Choice Single Answer |
Question | The ratio which indicate the long term financial prospects of the company are |
Correct Answer | Solvency ratios |
Your Answer | Solvency ratios |
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Select The Blank |
Question | The comparison of the ratios of one organisation with that of the other organisation is termed as ________ comparison |
Correct Answer | Inter-firm |
Your Answer | Inter-firm |
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True/False |
Question | Quick Assets are the most liquid of current assets |
Correct Answer | True |
Your Answer | True |
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Select The Blank |
Question | As per the Tandon Committee, the norms suggested for consumption of raw materials should be in ________ |
Correct Answer | months |
Your Answer | months |
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Multiple Choice Single Answer |
Question | The ratio which indicates the credit policy followed by a business firm is known as |
Correct Answer | Debtors turnover ratio |
Your Answer | Debtors turnover ratio |
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Multiple Choice Single Answer |
Question | Gross Profit ratio is calculated as |
Correct Answer | [(Gross Profit / Net Sales)] * 100 |
Your Answer | [(Gross Profit / Net Sales)] * 100 |
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Multiple Choice Multiple Answer |
Question | Advantages of Centralised disbursements |
Correct Answer | It increases the transit time , Minimum cash balance can be maintained only in case of central bank account instead of four different branches , To maintain the bank accounts at different branches may prove to be administratively difficult |
Your Answer | Minimum cash balance can be maintained only in case of central bank account instead of four different branches , To maintain the bank accounts at different branches may prove to be administratively difficult |
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Multiple Choice Multiple Answer |
Question | Advantages of Debentures from company's point of view are |
Correct Answer | The specific cost of debt capital represented by debentures is lower than the cost of preference or equity capital , Debenture financing does not result in dilution of control |
Your Answer | The specific cost of debt capital represented by debentures is lower than the cost of preference or equity capital , Debenture financing does not result in dilution of control |
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Select The Blank |
Question | The ratio of Market Price per share and Earning per share is termed as ________ |
Correct Answer | Price earnings ratio |
Your Answer | Price earnings ratio |
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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 | Sole |
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True/False |
Question | Under Hire Purchase agreement, depreciation is considered by the hirer as an expenditure, debited the same to Profit and Loss account and hence becomes the tax deductible expenditure |
Correct Answer | True |
Your Answer | True |
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Match The Following |
Question | Correct Answer | Your Answer | |
Ratio which measures the profitability of the investments in a firm | Return on Asset | Return on Asset | |
The relation of Net Sales and Working Capital | Working Capital turnover ratio | Working Capital turnover ratio | |
The ratio which indicates the speed at which the Sundry debtors are converted in the form of cash | Debtors turnover ratio | Debtors turnover ratio | |
The ratio which indicates the efficiency of the organisation with which the capital employed is being utilised | Capital turnover ratio | Capital turnover ratio | |
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True/False |
Question | Accounts Receivable is an example of current assets |
Correct Answer | True |
Your Answer | True |
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True/False |
Question | Semi-variable cost is the cost which varies in direct proportion to the sales revenue |
Correct Answer | False |
Your Answer | True |
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True/False |
Question | The redemption of preference shares if they carry too high rate of dividend is the remedy to overcome the situation of overcapitalisation |
Correct Answer | True |
Your Answer | False |
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Multiple Choice Multiple Answer |
Question | The normal process which may be followed under the capital rationing situations may be |
Correct Answer | Rank the projects according to some measure of profitability , Select projects in the descending order of profitability till the available funds are exhausted |
Your Answer | Rank the projects according to some measure of profitability , Select projects in the descending order of profitability till the available funds are exhausted |
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True/False |
Question | If the cash is held to take advantage of profit making opportunities arising out of changes in the value of securities, the cash holding is called Precautionary motive |
Correct Answer | False |
Your Answer | True |
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True/False |
Question | Credit rating is not a recommendation for buying, selling or holding a security |
Correct Answer | True |
Your Answer | True |
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Select The Blank |
Question | ________ in assets involves inflow of funds |
Correct Answer | Decrease |
Your Answer | Decrease |
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Multiple Choice Single Answer |
Question | Unclaimed Dividends is shown in the balance sheet under the head |
Correct Answer | Current liabilities and Provisions |
Your Answer | Current liabilities and Provisions |
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Multiple Choice Single Answer |
Question | The main function of finance under the traditional approach comprises of |
Correct Answer | Procurement of funds |
Your Answer | Procurement of funds |
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True/False |
Question | An ideal investor makes an comparison between the current market price and future Earning per share as the market value of shares depends upon the future Earnings per share |
Correct Answer | True |
Your Answer | True |
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Select The Blank |
Question | The objective of the management in the investment decisions is in the form of ________ |
Correct Answer | maximisation of the wealth of the shareholders |
Your Answer | maximisation of the wealth of the shareholders |
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Multiple Choice Single Answer |
Question | The traditional approach to financial management refers only to the procurement of funds by |
Correct Answer | Corporate entity |
Your Answer | Corporate entity |
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Select The Blank |
Question | Venture Capitalist is not interested in keeping his investment in the project on a ________ basis |
Correct Answer | Permanent |
Your Answer | Permanent |
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Multiple Choice Multiple Answer |
Question | The patterns of Dividend policy are |
Correct Answer | Stable Dividend policy , Irregular Dividend policy , No immediate Dividend policy |
Your Answer | Stable Dividend policy , Increasing Dividend policy |
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Multiple Choice Multiple Answer |
Question | The avenues available to the company to invest the excess cash balance on short term basis may be in the form of |
Correct Answer | inter-corporate bills discounting , Bank deposits , Commercial paper |
Your Answer | Commercial paper , inter-corporate bills discounting , Bank deposits |
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Multiple Choice Multiple Answer |
Question | Packing credit facility can take the following form |
Correct Answer | Pre-shipment Packing credit , Post-shipment Packing credit |
Your Answer | Pre-shipment Packing credit , Post-shipment Packing credit |
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Multiple Choice Multiple Answer |
Question | The recommendations of the Dahejia committee included |
Correct Answer | the banks should not only be security oriented but they should take into consideration total financial position of the client , all cash credit accounts with banks should be bifurcated in two categories |
Your Answer | the banks should not only be security oriented but they should take into consideration total financial position of the client , all cash credit accounts with banks should be bifurcated in two categories |
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Multiple Choice Multiple Answer |
Question | Limitations of capital budgeting is |
Correct Answer | Life of the project cannot be estimated accurately , Cash inflows cannot be eatimated accurately , Difficulties in deciding the cost of capital |
Your Answer | Cash inflows cannot be eatimated accurately , Inaccurate estimation of the fixed assets |
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Multiple Choice Single Answer |
Question | Calculate the Gross Profit Ratio from the following figures : Sales Rs. 1,00,000/-, Purchases Rs. 60,000/-, Sales Return Rs. 10,000/-, Opening stock Rs. 20,000/-, Purchases Return Rs. 15,000/-, Closing Stock Rs. 5,000/- |
Correct Answer | 0.3333 |
Your Answer | 0.3333 |
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Multiple Choice Single Answer |
Question | Mr. A is given the opportunity to receive Rs. 10,000 after two years, when he can earn interest of 10% p.a. on his investment, what should be the amount which he should invest today so that he may be able to receive Rs. 10,000 after two years |
Correct Answer | Rs. 8,264 |
Your Answer | Rs. 8,264 |
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Multiple Choice Single Answer |
Question | The cost of individual items of capital is termed as |
Correct Answer | Component cost |
Your Answer | Composite cost |
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Multiple Choice Single Answer |
Question | Delinquency cost in connection with accounts receivables involves |
Correct Answer | blocking up of funds for an extended period |
Your Answer | blocking up of funds for an extended period |
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Select The Blank |
Question | ________ is clubbed with Current Assets in the Balance Sheet |
Correct Answer | Loans and advances |
Your Answer | Loans and advances |
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Multiple Choice Multiple Answer |
Question | Disadvantages of Internal rate of return is |
Correct Answer | It is difficult to use and understand , It presupposes that the cash inflows can be re Unsecured loans includesinvested immediately to yield the return equivalent to Internal rate of return which is not very realistic |
Your Answer | It is difficult to use and understand , It presupposes that the cash inflows can be reinvested immediately to yield the return equivalent to Internal rate of return which is not very realistic |
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Select The Blank |
Question | The operating profit earned by the company is in the form of contribution duly reduced by the ________ |
Correct Answer | Fixed operating cost |
Your Answer | Sales revenue |
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Match The Following |
Question | Correct Answer | Your Answer | |
Safety Stock | below which the actual stock should not be allowed to fall | below which the actual stock should not be allowed to fall | |
ABC Analysis | Vital few Trivial Many | which is fixed in such a way that the total variable cost of managing the inventory can be minimised | |
Bill of Materials | Details of the necessary materials as well as quantity of each item | Details of the necessary materials as well as quantity of each item | |
Perpetual Inventory System | Maintenance of Bin Cards and Stores ledger in order to know about the stock in quantity and value at any given point of time | Maintenance of Bin Cards and Stores ledger in order to know about the stock in quantity and value at any given point of time | |
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Multiple Choice Multiple Answer |
Question | Dividend / Price Approach to compute cost of equity shares is objected on the following grounds |
Correct Answer | This presupposes that an investor looks forward only to receive dividend on equity shares which may not be correct , It assumes that the company will not earn on its retained earnings which is a wrong assumption |
Your Answer | It assumes that the company will not earn on its retained earnings which is a wrong assumption , It wrongly assumes that earnings per share will remain constant in future , All the earnings may not be distributed among the shareholders by way of dividend |
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Multiple Choice Multiple Answer |
Question | The internal factors affecting the dividend policy are |
Correct Answer | Growth rate of the company , Composition of the shareholding |
Your Answer | Growth rate of the company , Composition of the shareholding |
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Select The Blank |
Question | Operating Lease is also referred to as ________ lease |
Correct Answer | Service |
Your Answer | Financial |
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True/False |
Question | Reserve Bank of India appointed the Marathe Committee with the intention to recognize the contribution made by the SSI Sector to the economy |
Correct Answer | False |
Your Answer | False |
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