Top 150+ Solved Working Capital Management MCQ Questions Answer

From 61 to 75 of 143

Q. Dividends are paid out of

a. accumulated profits

b. gross profit,

c. profit after tax,

d. general reserve

  • c. profit after tax,

Q. In India, Dividend Distribution tax is paid on

a. equity share

b. preference share

c. debenture,

d. both (a) and (b)

  • d. both (a) and (b)

Q. Every company should follow

a. high dividend payment

b. low dividend payment,

c. stable dividend payment

d. fixed dividend payment

  • c. stable dividend payment

Q. 'Constant Dividend Per Share' Policy is considered as:

a. increasing dividend policy

b. decreasing dividend policy,

c. stable dividend policy

d. none of the above

  • c. stable dividend policy

Q. Which of the following is not a type of dividend payment?

a. bonus issue,

b. right issue,

c. share split,

d. both (b) and (c)

  • c. share split,

Q. If the following is an element of dividend policy?

a. production capacity,

b. change in management,

c. informational content,

d. debt service capacity

  • c. informational content,

Q. Stock split is a form of

a. dividend payment,

b. bonus issue,

c. financial restructuring,

d. dividend in kind

  • c. financial restructuring,

Q. In stock dividend:

a. authorized capital always increases,

b. paid up capital always increases,

c. face value per share decreases

d. market price for share decreases

  • d. market price for share decreases

Q. Which of the following is not considered in Lintner's Model ?

a. dividend payout ratio,

b. current eps,

c. speed of adjustment,

d. preceding year eps

  • d. preceding year eps

Q. Which of the following is not relevant for dividend payment for a year ?

a. cash flow position

b. profit position,

c. paid up capital,

d. retained earnings

  • d. retained earnings

Q. Cash Budget does not include

a. dividend payable

b. postal expenditure,

c. issue of capital,

d. total sales figure

  • d. total sales figure

Q. Which of the following is not a motive to hold cash?

a. transactionary motive,

b. pre-scautionary motive,

c. captal investment,

d. none of the above.

  • c. captal investment,

Q. Cheques deposited in bank may not be available for immediate use due to

a. payment float

b. recceipt float

c. net float,

d. playing the float.

  • b. recceipt float

Q. Difference between between the bank balance as per Cash Book and Pass Bookmay be due to:

a. overdraft,

b. float,

c. factoring,

d. none of the above.

  • b. float,

Q. Concentration Banking helps in

a. reducing idle bank balance

b. increasing collection,

c. increasing creditors,

d. reducing bank transactions.

  • b. increasing collection,
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