Top 550+ Solved Financial Management MCQ Questions Answer
Q. At Indifference level of EBIT, different capitals have:
a. same EBIT
b. same EPS
c. same PAT
d. same PBT
Q. ABC Analysis is used in
a. Inventory Management
b. Receivables Management
c. Accounting Policies
d. Corporate Governance
Q. Which of the following is not incorporated in Capital Building?
a. Tax-Effect
b. Time Value of Money
c. Required Rate of Return
d. Rate of Cash Discount
Q. Objective of Financial Management is
a. Management of Liquidity
b. Maximization of Profit
c. Maximization of Shareholders’ Wealth
d. Management of Fixed Assets
Q. Which of the following variables is not known in Internal Rate of Return?
a. Initial Cash Flows
b. Discount Rate
c. Terminal Inflows
d. Life of the Project
Q. Cost of Capital refers to
a. Floatation Cost
b. Dividend
c. Required Rate of Return
d. None of the above
Q. Working Capital Management involves financing and management of
a. All Assets
b. All Current Assets
c. Cash and Bank Balance
d. Receivables and Payables
Q. All listed companies are required to prepare
a. Funds Flow statement
b. Cash Flow Statement
c. Statement of Affairs
d. All of the above
Q. Ratio Analysis can be used to study liquidity, turnover, profitability etc., of a firm. What does Debt-Equity Ratio help to study?
a. Solvency
b. Liquidity
c. Profitability
d. Turnover
Q. A firm determines the shareholders’ wealth by taking
a. the number of people employed in the firm
b. the book value of the firm’s assets less the book value of its liabilities
c. the amount of salary paid to its employees
d. the market price per share of the firm
Q. Capital Budgeting techniques which considers the time value of money is based on
a. Cash Flows of the organization
b. Accounting Profit of the organization
c. Interest Rate on Borrowings
d. Last Dividend Paid
Q. Debt Financing is a cheaper source of finance because of
a. Time Value of Money
b. Rate of Interest
c. Tax-deductibility of Interest
d. Dividends not Payable to lenders
Q. What should be the optimum Dividend payout ratio, when r=12% and Ke=10%?
a. Zero
b. 50%
c. 12%
d. 100%
Q. The term Float is used in
a. Receivable Management
b. Cash Management
c. Marketable Management
d. Inventory Management
Q. Financial planning is ---------- function of a finance manager
a. Executive
b. Incidental
c. Auxiliary
d. None of these