Top 550+ Solved Financial Management MCQ Questions Answer
Q. If cash discount is offered to customers, then which of the following would increase?
a. Sales
b. Debtors
c. Debt collection period
d. All of the above
Q. Receivables Management deals with
a. Receipts of raw materials
b. Debtors collection,
c. Creditors Management
d. Inventory Management
Q. Which of the following is related to Receivables Management?
a. Cash Budget
b. Economic Order Quantity,
c. Ageing schedule
d. All of the above.
Q. EOQ is the quantity that minimizes
a. Total Ordering Cost
b. Total Inventory Cost,
c. Total Interest Cost
d. Safety Stock Level
Q. ABC Analysis is used in
a. Inventory Management
b. Receivables Management
c. Accounting Policies,
d. Corporate Governance.
Q. If no information is available, the General Rule for valuation of stock for balancesheet is
a. Replacement Cost
b. Realizable Value,
c. Historical Cost
d. Standard Cost
Q. In ABC inventory management system, class A items may require
a. Higher Safety Stock
b. Frequent Deliveries
c. Periodic Inventory system
d. Updating of inventory records.
Q. Inventory holding cost may include
a. Material Purchase Cost
b. Penalty charge for default,
c. Interest on loan,
d. None of the above
Q. Use of safety stock by a firm would
a. Increase Inventory Cost
b. Decrease Inventory Cost,
c. No effect on cost
d. None of the above
Q. Which of the following is true for a company which uses continuous review inventorysystem
a. Order Interval is fixed
b. Order Interval varies,
c. Order Quantity is fixed
d. Both (a) and (c)
Q. ABC Analysis is useful for analyzing the inventories:
a. Based on their Quality
b. Based on their Usage and value
c. Based on Physical Volume
d. All of the above
Q. If A = Annual Requirement, O = Order Cost and C = Carrying Cost per unit perannum, then EOQ
a. (2AO/C) 2
b. 2AO/C
c. 2A÷OC
d. 2AOC
Q. Inventory is generally valued as lower of
a. Market Price and Replacement Cost
b. Cost and Net Realizable Value
c. Cost and Sales Value
d. Sales Value and Profit.
Q. Which of the following is not included in cost of inventory?
a. Purchase cost
b. Transport in Cost,
c. Import Duty,
d. Selling Costs.
Q. Cost of not carrying sufficient inventory is known as
a. Carrying Cost
b. Holding Cost
c. Total Cost
d. Stock-out Cost