Top 550+ Solved Financial Management MCQ Questions Answer
Q. The lease period in such a contract is less than the useful life of asset. Here we aretalking about _______.
a. Operating or Service Lease
b. Service Lease
c. Financial Lease
d. None of the above
Q. Which one is the Benefit(s) of Factoring?
a. Better Cash Flows
b. Better Assets Management
c. Better Working Capital Management
d. All of the above
Q. Find the present value of Rs. 1,000 receivable 6 years hence if the rate of discount is10 percent.
a. 564.5
b. 554.5
c. 574.5
d. 600
Q. The term _______means manipulation of accounts in a way so as to conceal vital facts and present the financial statements in a way to show a better position than what it actually is.
a. window dressing
b. creative accounting
c. window accounting
d. modified accounting
Q. Collateralized borrowing and lending obligation (CBLO) is a discounted instrumentavailable in electronic book entry for the maturity period ranging from __________.
a. 1 day to 19 days
b. 1 day to 15 days
c. 1 day to 30 days
d. None of the above
Q. IPO refers to ____________; the first time a company comes to public to raise money.
a. Immediate Public Offer
b. Immediate Public Offering
c. Initial Public Offer
d. Initial Public Offering
Q. SPO refers to ________, the second and subsequent time a company raises moneyfrom the public directly.
a. Second Public Offering
b. Subsequent Public Offering
c. Subsequent Public Offer
d. Seasonal Public Offering
Q. Liquid Liability = Current Liability – Bank Overdraft – ___________
a. Cash Credit
b. Trade Credit
c. Both of the above
d. None of the above
Q. Ratio analysis is the process of determining and interpreting numerical relationshipsbased on _______.
a. Financial values
b. Financial statements
c. Financial numerical information
d. All of the above
Q. Ratio analysis is based on __________ measure.
a. relative
b. absolute
c. Both of the above
d. None of the above
Q. The persons interested in the analysis of financial statements can be grouped as_________.
a. Owners or investors
b. Creditors
c. Financial executives
d. All of the above
Q. The term “Operating Profit” means profit before __________________.
a. interest
b. tax
c. interest and tax
d. interest or tax
Q. Debt- equity Ratio is an example of ________________.
a. Short term solvency Ratio
b. Long term solvency Ratio
c. Profitability Ratio
d. None of the above
Q. In Cash Flow Statement, Cash includes________________.
a. cash on hand
b. demand deposits with banks
c. cash on hand and demand deposits with banks
d. cash on hand or demand deposits with banks
Q. The treatment of interest and dividends received and paid depends upon the natureof the enterprise. For this purpose, the enterprises are classified as ____________.
a. (i) Financial enterprises, and (ii) Operating enterprises
b. (i) Financial enterprises, and (ii) Other enterprises
c. (i) Financial enterprises, and (ii) Non-Financial enterprises
d. (i) Trading enterprises, and (ii) Non - Trading enterprises