Top 150+ Solved Advanced Financial Management 2 MCQ Questions Answer
Q. Any change in Current Liabilities will effect inverse change in the working capital.
a. True
b. False
c. none
d. none
Q. From the following details find out the funds from operations: Net Profit after Tax Rs. 48,000 Depreciation Rs. 30,000 Loss on Sale of Outdated Machinary : Rs. 4000
a. Rs. 82,000
b. Rs. 22,000
c. Rs. 74,000
d. Rs. 14,000
Q. From the following details find out the fund from operationsPAT Rs. 2,500 Accumulated Depreciation Rs. 2,900 Retained Earning Rs. 4,200 Goodwill Written off Rs. 300 Profit on Sale of Fixed Assets Rs. 200
a. Rs. 9,900
b. Rs. 9,600
c. Rs. 9,700
d. Rs. 5,100
Q. Funds Flow Statement indicates the necessity of arranging external funds in advance ifprojected outflow is more than inflow.
a. True
b. False
c. none
d. none
Q. Any change in the Current assets is positively correlated to the change in workingcapital
a. True
b. False
c. none
d. none
Q. Non-cash adjustments like Depreciation, Preliminary Expenses and Goodwill Written offare shown on the debit side of which account?
a. Balance Sheet
b. Funds Flow Statement
c. Adjusted Profit and Loss Account
d. Working Capital Statement
Q. Part of Profit transferred to General Reserve will be shown on the debit side of _________
a. Balance Sheet
b. Funds Flow
c. Cash Flow
d. Adjusted Profit and Loss Account
Q. A projected Funds Flow Statement informs the management about
a. Future Financial Stringency
b. Future Requirement of Funds
c. Funds Position of the Company
d. All of the above
Q. Funds Flow Statement can be prepared in which form?
a. Vertical Form
b. Horizontal Form
c. Complex Form
d. Both a and b
Q. Funds flow statement being based on ________________, which is of limited utility for future planning is a limitation of funds flow statement.
a. Historical Facts
b. Traditional Facts
c. Hypothetical Facts
d. Current Facts
Q. Which one of the following is NOT a theory of International Parity Relationship
a. Purchasing Power Parity
b. Covered Interest Arbitrage and Interest Rate Parity
c. Money Market Hedge Theory
d. Expectations Theory
Q. Indirect Quotation is also known as ___________
a. European Quotation
b. Indian Quotation
c. American Quotation
d. Euro Quotation
Q. The spread in a two way quotation is affected by
a. Currency involved
b. The volume of business
c. Market sentiments/rumours about the currency
d. All of the above
Q. The Rate of Exchange applicable for delivery of Foreign Exchange at a future date iscalled ______
a. Spot Rate
b. Current Rate
c. Forward Rate
d. Expected Rate
Q. The act of arbitrage that involves three foreign currencies involving three differentforeign exchange market is called __________
a. Geographical Arbitrage
b. Triangular Arbitrage
c. Cross Arbitrage
d. None of the Above