Top 550+ Solved Financial Management MCQ Questions Answer
Q. Annual credit sales Rs. 4,00,000; Average collection period 45 days (assume 360 days in a year). What is Average debtors?
a. Rs. 60,000
b. Rs. 74,000
c. Rs. 50,000
d. Rs. 4,00,000
Q. Investment in a project is Rs. 200 lakhs and Net Present Value is Rs. 50 lakhs. Then theamount of inflows is :
a. Rs. 150 lakhs
b. Rs. 200 lakhs
c. Rs. 100 lakhs
d. Rs. 250 lakhs
Q. PAT of a company Rs. 100 lakhs and number of equity shares of Rs. 10 each with acapital of Rs. 50 lakhs, then EPS is:
a. Rs. 2
b. Rs. 1
c. Rs. 10
d. None of these
Q. Degree of operating leverage is:
a. EBIT / EBT
b. Contribution / EBT
c. Contribution / EBIT
d. None of these
Q. Cost of goods sold is Rs. 8000 and gross margin is Rs. 5000 then revenue will be
a. Rs. 3,000
b. Rs. 5,000
c. Rs. 8,000
d. Rs. 13,000
Q. Present value of inflows Rs. 10 lakhs from a project and initial investment is Rs. 7.5lakhs. The NPV is:
a. Rs. 17.5 lakhs
b. Rs. 7.5 lakhs
c. Rs. 10 Lakhs
d. Rs. 2.5 lakhs
Q. Cash & Bank Rs. 20,000; Debtors Rs. 2,00,000; Stock Rs. 2,80,000 and Current Liabilities:Creditors Rs. 1,00,000; Bills Payable Rs. 50,000. Then the working capital is:
a. Rs. 4,00,000
b. Rs. 3,80,000
c. Rs. 3,50,000
d. Rs. 70,000
Q. 1,00,000; 10% Debentures of Rs. 100 each of company, the interest payable forquarter is:
a. Rs. 10,00,000
b. Rs. 2,50,000
c. Rs. 5,00,000
d. None of these
Q. Gross margin is added to cost of sold goods for calculating
a. revenues
b. selling price
c. unit price
d. bundle price
Q. Cash Flow Statement is also known as
a. Statement of Changes in Financial Position on Cash basis
b. Statement accounting for variation in cash
c. Both a and b
d. None of the above
Q. Degree of financial leverage of business indicates.
a. Total risk
b. Operating risk
c. Financial risk
d. None of these
Q. Which of the following is not a characteristic of GDR?
a. Is a negotiable instrument
b. Carry voting rights
c. Freely tradable in International Market
d. Denominated in US Dollars
Q. Which of the following is a feature of Factoring?
a. Tool of short term borrowing
b. Purchase of export bill only
c. Used in Export business only
d. Done without recourse to the client
Q. Which of the following is a Profitability Ratio?
a. Proprietary Ratio
b. Debt –equity Ratio
c. Price Earnings Ratio
d. Fixed Asset Ratio