Top 550+ Solved Financial Management MCQ Questions Answer
Q. Which of the following costs is not associated with inventories?
a. Material cost
b. Ordering cost
c. Carrying cost
d. Cost of long term debt locked in inventories
Q. When a company liberalizes its cash discount policy
a. It increases the cost of discount
b. It leads to an increase in the average collection period
c. The discount period may be lengthened
d. All of the above
Q. Which of the following is not associated with cash management of a firm?
a. Stretching accounts payable without affecting the credit of the firm
b. Speedy collection of receivables
c. Investing surplus funds in long term securities
d. Maintaining liquidity
Q. Which of the following is not a motive for holding cash?
a. Transaction purpose
b. Precaution against unexpected expenses
c. Extending loans to group companies
d. Speculation purpose
Q. Cash management does not call for
a. Lengthening creditor’s period
b. Lengthening debtor’s period
c. Investing surplus funds
d. Nullifying idle funds
Q. Which of the following is not a function of a finance manager?
a. Mobilization of funds
b. Manipulate share price of the company
c. Deployment of funds
d. Control over use of funds
Q. Which of the following is not a part of the money market?
a. Call money market
b. Treasury bill market
c. Commercial paper market
d. Stock market
Q. The objective of financial management is to
a. Maximize the revenue
b. Minimize the expenses
c. Maximize the return on investment
d. Maximize the wealth of the owners by increasing the value of the firm
Q. Which of the following is the main objective of financial management?
a. Revenue Maximisation
b. Profit Maximisation
c. Wealth Maximisation
d. Cost Minimisation
Q. Which one of the following activities is outside the purview of financing decision infinancial management?
a. Identification of the source of funds
b. Measurement of the cost of funds
c. Deciding on the time of raising the funds
d. Deciding on the utilization of the funds
Q. Which of the following forms of equity financing is especially designed for fundingHigh Risk & High Reward projects?
a. ADR
b. GDR
c. FCCB
d. Venture Capital
Q. A process through which loans and other receivables are underwritten and sold in aform of asset is known as:
a. Factoring
b. Forfeiting
c. Securitisation
d. Bill Discounting
Q. In Net Profit Ratio, the denominator is:
a. Credit Sales
b. Net Sales
c. Cost of Sales
d. Cost of Goods Sold
Q. Current Assets Rs. 20,00,000; Current Liabilities Rs. 10,00,000 and Stock Rs. 2,00,000,then what is liquid ratio?
a. 2 times
b. 1.8 times
c. 1.4 times
d. None of these