Top 550+ Solved Financial Management MCQ Questions Answer
Q. Working Capital Turnover measures the relationship of Working Capital with:
a. Fixed Assets
b. Sales
c. Purchases
d. Stock.
Q. Dividend Payout Ratio is:
a. PAT Capital
b. DPS ÷ EPS
c. Pref. Dividend ÷ PAT
d. Pref. Dividend ÷ Equity Dividend
Q. Inventory Turnover measures the relationship of inventory with:
a. Average Sales
b. Cost of Goods Sold
c. Total Purchases
d. Total Assets
Q. The term 'EVA' is used for:
a. Extra Value Analysis
b. Economic Value Added
c. Expected Value Analysis
d. Engineering Value Analysis
Q. Return on Investment may be improved by:
a. Increasing Turnover
b. Reducing Expenses
c. Increasing Capital Utilization
d. All of the above
Q. In Current Ratio, Current Assets are compared with:
a. Current Profit
b. Current Liabilities
c. Fixed Assets
d. Equity Share Capital
Q. There is deterioration in the management of working capital of XYZ Ltd. What does itrefer to?
a. That the Capital Employed has reduced,
b. That the Profitability has gone up,
c. That debtors collection period has increased,
d. That Sales has decrease
Q. Debt to Total Assets Ratio can be improved by:
a. Borrowing More
b. Issue of Debentures
c. Issue of Equity Shares
d. Redemption of Debt.
Q. Ratio of Net Income to Number of Equity Shares known as:
a. Price Earnings Ratio
b. Net Profit Ratio,
c. Earnings per Share
d. Dividend per Share.
Q. A Current Ratio of Less than One means:
a. Current Liabilities < Current Assets
b. Fixed Assets > Current Assets
c. Current Assets < Current Liabilities
d. Share Capital > Current Assets
Q. Suppliers and Creditors of a firm are interested in
a. Profitability Position
b. Liquidity Position
c. Market Share Position
d. Debt Position
Q. Which of the following is a measure of Debt Service capacity of a firm?
a. Current Ratio
b. Acid Test Ratio
c. Interest Coverage Ratio
d. Debtors Turnover
Q. Gross Profit Ratio for a firm remains same but the Net Profit Ratio is decreasing. Thereason for such behavior could be:
a. Increase in Costs of Goods Sold
b. If Increase in Expense
c. Increase in Dividend
d. Decrease in Sales.
Q. Debt to Total Assets of a firm is .2. The Debt to Equity boo would be:
a. 0.80
b. 0.25
c. 1.00
d. 0.75