Top 550+ Solved Financial Management MCQ Questions Answer
Q. In lease system, interest is calculated on
a. Cash down payment
b. Cash price outstanding
c. Hire purchase price
d. None of the above
Q. A short-term lease which is often cancellable is known as
a. Finance Lease
b. Net Lease,
c. Operating Lease
d. Leverage Lease
Q. Which of the following is not a usual type of lease arrangement?
a. Sale & leaseback,
b. Goods on Approval,
c. Leverage Lease,
d. Direct Lease
Q. Under income-tax provisions, depreciation on lease asset is allowed to
a. Lessor
b. Lessee
c. Any of the two
d. None of the two
Q. Under the provisions of AS-19 'Leases', a leased asset is shown is the balance sheet of
a. Manufacturer
b. Lessor
c. Lessee
d. Financing bank
Q. A lease which is generally not cancellable and covers full economic life of the asset isknown as
a. Sale and leaseback,
b. Operating Lease
c. Finance Lease,
d. Economic Lease
Q. Lease which includes a third party (a lender) is known as
a. Sale and leaseback
b. Direct Lease,
c. Inverse Lease,
d. Leveraged Lease
Q. One difference between Operating and Financial lease is:
a. There is often an option to buy in operating lease
b. There is often a call option in financial lease.
c. An operating lease is generally cancelable by lease
d. A financial lease in generally cancelable by lease.
Q. From the point of view of the lessee, a lease is a:
a. Working capital decision,
b. Financing decision,
c. Buy or make decision,
d. Investment decision
Q. For a lesser, a lease is a
a. Investment decision,
b. Financing decision,
c. Dividend decision
d. None of the above.
Q. Which of the following is not true for a "Lease decision for the lessee?
a. Helps in project selection
b. Helps in project financing
c. Helps in project location
d. All of the above.
Q. Risk-Return trade off implies
a. Minimization of Risk,
b. Maximization of Risk,
c. Ignorance of Risk
d. Optimization of Risk
Q. Basic objective of diversification is
a. Increasing Return,
b. Maximising Return,
c. Decreasing Risk,
d. Maximizing Risk.
Q. Risk-aversion of an investor can be measured by
a. Market Rate of Return
b. Risk-free Rate of Return,
c. Portfolio Return,
d. None of the above.
Q. If the intrinsic value of a share is less than the market price, which of the mostreasonable?
a. That shares have lesser degree of risk
b. That market is over valuing the shares
c. That the company is high dividend paying,
d. That market is undervaluing the share