Top 550+ Solved Financial Management MCQ Questions Answer
Q. Which is the element of capital budgeting decision
a. Long term effect
b. Long term investment
c. Capital expenditure
d. Large investment
Q. Capital budgeting process involves --------------------
a. Final approval
b. Performance review
c. Establishing priorities
d. All of these
Q. Which is the step of capital budgeting process?
a. Project generation
b. Project evaluation
c. Project selection
d. Project execution
Q. Which is the traditional method of capital budgeting
a. Payback period
b. Pay out method
c. Accounting method
d. All of these
Q. Which is the time adjusting method of capital budgeting
a. NPV method
b. IRR method
c. Profitability Index Method
d. All of these
Q. If the annual cash inflows are constant, the payback period can be computed by dividing cash outlay by ----------------
a. Annual cash inflow
b. Profit
c. Expenses
d. Annual sales flows
Q. If a project requires Rs.20,000 as initial investment and it will generate an annual inflow of Rs.2,000 for the 20 years, the pay back period will be ------------------
a. 10 years
b. 20 years
c. 9 years
d. 2 years
Q. Projects which yields the highest earnings are ------------------
a. Selected
b. Rejected
c. Budgeted
d. All of these
Q. The present value of total cash inflows should be compared with present value of ----------------------
a. Cash inflows
b. Cash outflows
c. Investment
d. Income
Q. The proposal is accepted if the profitability index is more than -----
a. One by zero
b. Three
c. Five
d. Ten
Q. The proposal is rejected in case the profitability index is ------------
a. Less than one
b. Less than zero
c. Less than two
d. Less than five
Q. The present value of all inflows are cumulated in -------------------
a. Order of sales by order of cash
b. Order of time
c. Order of investment
d. All of these
Q. The performance report supplement with date on non-financial performance measures includes ------------------
a. Market performance measures
b. Quality measures
c. Delivery measures
d. All of these
Q. The investment of long term funds is made after a careful assessment of the various projects through -------------------
a. Cost of capital
b. Fund flow
c. Capital budgeting by sales
d. Marketing planning
Q. Which is the objective of a firm’s finance management?
a. The maximization of firm’s profit
b. The maximization of firm’s value
c. The maximization of firm’s wealth
d. All of these