Top 550+ Solved Financial Management MCQ Questions Answer
Q. Book building --------------------
a. Is a plant
b. Is a profit cum expenses
c. Is a process used for marketing a public offer of equity shares of a company
d. Is a cost
Q. When an option is allowed to be exercised only on maturity date is called --------------
a. Indian option
b. European option
c. American option
d. Option
Q. Commercial paper effective from ---------------------
a. 1-1-1980
b. 1-1-1990
c. 1-1-1975
d. 1-1-1995
Q. In India commercial paper is regulated by -------------------
a. RBI
b. SEBI
c. SBI
d. Indian companies act 1956
Q. The interest rate on commercial paper is determined by -------------
a. RBI
b. SEBI and Market Force
c. SBI
d. Market Force
Q. Factoring is a ----------------
a. Cost of sales
b. Production plan
c. Financial planning
d. New financial service
Q. Factoring involves ----------------
a. Provision of specialized services relating to credit investigation
b. Sales ledger management
c. Purchase and collection of debts
d. All of these
Q. Which of the following recognizes risk in capital budgeting analysis by adjusting estimated cash flows and employs risk free rate to discount the adjusted cash flows?
a. Pay back period
b. Certainty equivalent approach
c. Cash
d. Inventory
Q. ------------- rate at which discounts the cash flows to zero
a. Payback period by economic order quantity
b. Internal rate of return
c. Cash flow
d. None of these
Q. The net present value is expressed in financial value, where as internal rate of return(IRR) is expressed in ---------------
a. Hundred by percentage terms
b. One thousand
c. All of these
d. None of these
Q. Return on assets is a ratio which measures ----------------
a. Cost of capital
b. Cost of production
c. Profitability
d. Cost of sales
Q. Return on equity measures the profitability of ------------------- invested in the firm
a. Capital
b. Equity funds
c. Book debt
d. Debentures and book dept
Q. Which ratio reveals how profitability of the owner’s funds have been utilized by the firm?
a. Return on equity
b. Current ratio
c. Fixed asset ratio
d. Debt equity ratio
Q. Capital employed is ----------
a. Assets + cash
b. Shareholders funds + Long funds
c. Cash + bank
d. Bank
Q. Financial leverage is ----------------
a. EBIT/100* sales
b. EBIT/EBT
c. Sales/fixed asset
d. Profit/sales*capital