Top 550+ Solved Financial Management MCQ Questions Answer
Q. Which of the following is not the responsibility of financial management?
a. Allocation of funds to current and capital assets
b. Obtaining the best mix of financing alternatives
c. Preparation of the firm’s accounting statements
d. Development of an appropriate dividend policy
Q. Uses of funds include a(an):
a. Decrease in cash
b. Increase in any liability
c. Tax refund
d. Increased in fixed assets
Q. A capital investment is one that
a. Has the prospect of long term benefits
b. Has the prospect of short term benefits
c. Is only undertaken by large corporations
d. Applies only to investment in fixed assets
Q. Which one of the following factors that influence educational finance?
a. Demand for education
b. Financial control
c. Concentration of wealth
d. Level of national income
Q. The main problem of financing a scheme of post-secondary education that faced with serious difficulties
a. expansion of educational services
b. Removal of disparities in educational opportunities
c. Inadequacy of funds
d. None of the above
Q. Modern industrial development has caused________
a. Private enterprise
b. Economic imbalances
c. Social change
d. Economic contribution
Q. The control of________ is a very important problem because ‘power follows the purse’and this power may be easily misused
a. Economy
b. Population
c. Government
d. Finance
Q. Economists believe in the law of diminishing marginal utility’. This ‘utility’ means
a. Ability
b. Efficiency
c. Satisfaction
d. Reduction
Q. Efficiency can be much improved if there is only a________ planning.
a. Short term and long term
b. Short term
c. Long term
d. None of the above
Q. It has been decided that______ of schooling will be made available to majority of our youth
a. 12 years
b. 10 years
c. 5 years
d. None of the above
Q. To solve the problem of mobility of population and overcrowding in the cities the government has to adopt
a. Appropriate measures both at the economic and educational levels
b. Evolving a new finance structure in which the Central government will have to play significant role
c. Maintenance of a high level of national income
d. Financing of education
Q. The appropriate objective of an enterprise is;
a. Maximisation of sale
b. Maximisation of owners wealth.
c. Maximisation of profits.
d. None of these.
Q. The job of a finance manager is confined to
a. Raising funds
b. Management of cash
c. Raising of funds and their effective utilization.
d. None of these.
Q. Financial decision involve;
a. Investment ,financing and dividend decision
b. Investment ,financing and sales decision
c. Financing , dividend and cash decision
d. None of these.
Q. Net Profit Ratio Signifies:
a. Operational Profitability
b. Liquidity Position
c. Solvency
d. Profit