Top 550+ Solved Financial Management MCQ Questions Answer
Q. Which of the following is not a motive to hold cash?
a. Transactionary Motive,
b. Pre-scautionary Motive,
c. Captal Investment,
d. None of the above.
Q. Cheques deposited in bank may not be available for immediate use due to
a. Payment Float
b. Recceipt Float
c. Net Float,
d. Playing the Float.
Q. Difference between between the bank balance as per Cash Book and Pass Book maybe due to:
a. Overdraft,
b. Float,
c. Factoring,
d. None of the above.
Q. Concentration Banking helps in
a. Reducing Idle Bank Balance
b. Increasing Collection,
c. Increasing Creditors,
d. Reducing Bank Transactions.
Q. The Transaction Motive for holding cash is for
a. Safety Cushion
b. Daily Operations,
c. Purchase of Assets
d. Payment of Dividends.
Q. Miller-Orr Model deals with
a. Optimum Cash Balance,
b. Optimum Finished goods,
c. Optimum Receivables,
d. All of the above.
Q. Float management is related to
a. Cash Management,
b. Inventory Management,
c. Receivables Management,
d. Raw Materials Management
Q. Which of the following is not an objective of cash management ?
a. Maximization of cash balance
b. Minimization of cash balance
c. Optimization of cash balance
d. Zero cash balance.
Q. Which of the following is not true of cash budget ?
a. Cash budget indicates timings of short-term borrowing,
b. Cash budget is based on accrual concept
c. Cash budget is based on cash flow concept
d. Repayment of principal amount of law is shown in cash budget.
Q. Baumol's Model of Cash Management attempts to:
a. Minimise the holding cost,
b. Minimization of transaction cost,
c. Minimization of total cost,
d. Minimization of cash balance
Q. Which of the following is not considered by Miller-Orr Model?
a. Variability in cash requirement
b. Cost of transaction,
c. Holding cost,
d. Total annual requirement of cash.
Q. Marketable securities are primarily
a. Equity shares,'
b. Preference shares,
c. Fixed deposits with companies
d. Short-term debt investments.
Q. 5Cs of the credit does not include
a. Collateral
b. Character,
c. Conditions,
d. None of the above
Q. Which of the following is not an element of credit policy?
a. Credit Terms
b. Collection Policy
c. Cash Discount Terms,
d. Sales Price
Q. Ageing schedule incorporates the relationship between
a. Creditors and Days Outstanding
b. Debtors and Days Outstanding
c. Average Age of Directors,
d. Average Age of All Employees.