Top 550+ Solved Financial Management MCQ Questions Answer
Q. The company can reduce its capital by -------------
a. Convertible share
b. Payment of loan
c. Redemption of redeemable preference shares
d. Payment of interest
Q. Which is the type of dividend?
a. Cash dividend
b. Interest
c. Profit cum reserve
d. Flexible capital
Q. The dividend on equity shares is only paid when dividend on ---------- has already been paid
a. Equity shares
b. Preference shares
c. Bond
d. Debenture
Q. Which shares are not redeemed during lifetime of the company?
a. Equity shares
b. Preference shares
c. Redeemable pre-shares
d. All of these
Q. “ A debenture is a document which either creates a debt or acknowledge it” . who said?
a. Justice Chitty
b. Tophan’s Company law
c. J. Betty
d. Hoston D
Q. Which is the current liability?
a. Bills payable
b. Bank overdraft
c. Creditors and proposed dividend
d. All of these
Q. Reserve is an ---------------
a. Additional part of profit
b. Additional loss
c. Liability
d. Cost
Q. If there is over capitalization in the company, the redemption of debenture can lead to---------------
a. Cost of capital
b. Balanced capital structure
c. Equity
d. Dividend
Q. The interest on debenture may be ---------------
a. Fixed liability
b. Flexible liability
c. More cost
d. Less cost
Q. The issue of debenture is done only by the --------------
a. New company
b. New firm
c. New partnership
d. Established and reputed companies
Q. The debentures are used only by those companies whose ------------
a. Goodwill is more
b. Goodwill is less
c. Worth is less
d. All of these
Q. The debentures are issued on the security of ----------------
a. Fixed assets
b. Fixed capital
c. Current Assets
d. Current liabilities
Q. Every debenture holders is a ----------------
a. Owner of the company
b. Creditor of the company
c. Supplier of the company
d. Customer of the company
Q. A company should arrange the capital structure in such a way that there is maximum flexibility in the capital and cost of capital is
a. Maximum
b. Minimum
c. Expensive
d. All of the above
Q. Term loans are those loans which are payable after one or more ______________
a. years
b. Time
c. Costly
d. All of these