Top 550+ Solved Financial Management MCQ Questions Answer
Q. Which of the following helps analysing return to equity Shareholders?
a. Return on Assets
b. Earnings Per Share
c. Net Profit Ratio
d. Return on Investment.
Q. In Inventory Turnover calculation, what is taken in the numerator?
a. Sales
b. Cost of Goods Sold,
c. Opening Stock
d. Closing Stock.
Q. Financial Planning deals with:
a. Preparation of Financial Statements
b. Planning for a Capital Issue
c. Preparing Budgets
d. All of the above
Q. Financial planning starts with the preparation of:
a. Master Budget
b. Cash Budget
c. Balance Sheet
d. None of the above.
Q. Process of Financial Planning ends with:
a. Preparation of Projected Statements
b. Preparation of Actual Statements
c. Comparison of Actual with Projected
d. Ordering the employees that projected figures m come true.
Q. In Walter model formula D stands for
a. Dividend per share
b. Direct Dividend
c. Dividend Earning
d. None of these
Q. In MM model MM stands for...
a. M.Khan and Modigiliani
b. Miller and M.Khan
c. Modigiliani and M.Khan
d. Miller and Modigliani
Q. The addition of all current assets investment is known as...
a. Net Working Capital
b. Gross Working capital
c. Temporary Working Capital
d. All of these
Q. When total current assets exceeds total current liabilities it refers to.
a. Gross Working Capital
b. Temporary Working Capital
c. Both a and b
d. Net Working Capital
Q. Which of the following would not be financed from working capital?
a. Cash float.
b. Accounts receivable.
c. Credit sales.
d. A new personal computer for the office.
Q. What is the difference between the current ratio and the quick ratio?
a. The current ratio includes inventories and the quick ratio does not.
b. The current ratio does not include inventories and the quick ratio does.
c. The current ratio includes physical capital and the quick ratio does not.
d. The current ratio does not include physical capital and the quick ratio does.
Q. Which of the following working capital strategies is the most aggressive?
a. Making greater use of short term finance and maximizing net short term asset.
b. Making greater use of long term finance and minimizing net short term asset.
c. Making greater use of short term finance and minimizing net short term asset.
d. Making greater use of long term finance and maximizing net short term asset.
Q. Which of the following is not a metric to use for measuring the length of the cash cycle?
a. Acid test days.
b. Accounts receivable days.
c. Accounts payable days.
d. Inventory days.
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