Top 150+ Solved Advanced Financial Management 2 MCQ Questions Answer
Q. Which of the following are Non-current Assets?
a. Land, Building and Plant
b. Bills Receivable
c. Debtors
d. Pre-paid Expenses
Q. Which of the following are Current Liabilities?
a. Sundry Creditors
b. Bank Overdraft
c. Outstanding Salaries
d. All of the Above
Q. When a part of the Fixed Assets is sold during the year, the Profit on sale is shown onthe credit side of which Account?
a. Adjusted Profit and Loss Account
b. Profit and Loss Account
c. Fixed Assets Accounts
d. Liabilities Accounts
Q. The Funds Flow and Cash Flow statements fail to give a clear idea about profitability ofthe company.
a. True
b. False
c. none
d. none
Q. Among the following items which item is shown on the debit side of Adjusted Profit andLoss Account?
a. Depreciation and other Non-cash Adjustments
b. Appropriation of Profit
c. Provision for Taxation
d. All of the Above
Q. Among the following items which does NOT represent the Application of Funds?
a. Payment of Interim Dividend
b. Payment of Supervisor’s Salary
c. Issue of Share Capital
d. Payment of Taxes
Q. Until February 1973, which one of the following was prevalent in World MonetarySystem?
a. Free Floating Exchange Rate System
b. Adjustable Peg Exchange Rate System
c. Bench marking Exchange Rate System
d. None of the above
Q. Which one of the following is NOT referred to as ‘Major’ or ‘Hard’ Currency?
a. US Dollar
b. French Frank
c. Euro
d. India Rupee
Q. Rs. 75.17/USD is which type of quotation?
a. Indirect Quote
b. Direct Quote
c. Bilateral Quote
d. Cross Quote
Q. In a two way foreign exchange quotation, the difference between ask and bid prices iscalled ____________.
a. Difference
b. Margin
c. Spread
d. None of the above
Q. Below data is available: Spot Exchange Rate 6 Month’s Forward Rate Rs./USD 75.17 Rs. 75.00 So, the forward rate is at ___________________
a. Premium
b. Discount
c. At Par
d. None of the above
Q. From the data given below which option is true?Spot 1 month’s Forward Rs./GBP 94.85 94.95
a. 1 month’s forward is at 1.27% premium
b. 1 month’s forward is at 0.11% premium
c. 1 month’s forward is at 1.27% discount
d. 1 month’s forward is at 0.11% discount
Q. The rate of exchange of two currencies on the basis of exchange quotes of other pairs of currencies are derived when a quote of home currency (or desired currency) to any other currency is not available in the Foreign Exchange market is called ____________.
a. Direct Quote
b. Exchange Rate
c. Cross Rate
d. Dependent Rate
Q. Which of the below mentioned contract is a standardized contract?
a. Futures Contract
b. Forward Contract
c. Both a and b
d. None of the above
Q. An Option which can be exercised only on the maturity date is known as __________.
a. Put Option
b. American Option
c. European Option
d. Call Option