Top 550+ Solved Financial Management MCQ Questions Answer
Q. The discount rate which forces net present values to become zero is classified as
a. positive rate of return
b. negative rate of return
c. external rate of return
d. internal rate of return
Q. A point where profile of net present value crosses horizontal axis at plotted graphindicates project
a. costs
b. cash flows
c. internal rate of return
d. external rate of return
Q. Payback period in which an expected cash flows are discounted with the help ofproject cost of capital is classified as
a. discounted payback period
b. discounted rate of return
c. discounted cash flows
d. discounted project cost
Q. Number of years forecasted to recover an original investment is classified as
a. payback period
b. forecasted period
c. original period
d. investment period
Q. In proper capital budgeting analysis, we evaluate incremental
a. Accounting income
b. Cash flow
c. Earnings
d. Operating profit
Q. The main elements of traditional approach to financial management are -
a. Institutional sources of finance
b. Issue of financial devices to collect refunds from capital market
c. Accounting and legal relationship between source of finance and business
d. all the above
Q. The main elements of modern approach to financial management are -
a. evaluation of alternative fund utilization
b. capital budgeting
c. financial planning
d. all the above
Q. The critical decisions to be taken under modern approach to financial management are -
a. investment decision
b. financing decision
c. dividend decision
d. all the above
Q. Which is a function of financial management?
a. tax planning
b. management of provident funds
c. securities and social insurance funds
d. all the above
Q. Which is not a scope of financial management?
a. financial investment
b. financial control
c. financial supervision
d. financial planning
Q. The nature of financial management is concerned with -
a. functions and goals of the institution
b. procedural aspects
c. relation with other subsystems
d. all the above
Q. Financial management essentially involves -
a. risk-return trade off
b. types of assets
c. investment decisions
d. all the above
Q. Financial management affects the -
a. survival of the firm
b. growth of the firm
c. vitality of the firm
d. survival, growth and vitality of the firm
Q. Financial management is needed due to –
a. acquisition and proper use of funds
b. improve profitability
c. increase value of the firm/institution
d. all the above
Q. Proper allocation and utilization of funds leads to -
a. improvement of operational efficiency
b. improvement of profitability
c. increase value of the firm/institution
d. all the above