Top 150+ Solved Working Capital Management MCQ Questions Answer

From 121 to 135 of 143

Q. What is Economic Order Quantity?

a. cost of an order,

b. cost of stock

c. reorder level,

d. optimum order size.

  • d. optimum order size.

Q. The type of collateral (security) used for short-term loan is

a. real estate,

b. plant & machinery,

c. stock of good,

d. equity share capital

  • c. stock of good,

Q. Which of the following is a liability of a bank?

a. treasury bills,

b. commercial papers,

c. certificate of deposits,

d. junk bonds.

  • c. certificate of deposits,

Q. Commercial paper is a type of

a. fixed coupon bond

b. unsecured short-term debt

c. equity share capital,

d. government bond

  • b. unsecured short-term debt

Q. Which of the following is not a spontaneous source of short-term funds ?

a. trade credit,

b. accrued expenses,

c. provision for dividend,

d. all of the above.

  • c. provision for dividend,

Q. Concept of Maximum Permissible Bank finance was introduced by

a. kannan committee

b. chore committee,

c. nayak committee,

d. tandon committee.

  • d. tandon committee.

Q. In India, Commercial Papers are issued as per the guidelines issued by

a. securities and exchange board of india,

b. reserve bank of india,

c. forward market commission,

d. none of the above.

  • b. reserve bank of india,

Q. Commercial paper are generally issued at a price

a. equal to face value,

b. more than face value,

c. less than face value,

d. equal to redemption value

  • c. less than face value,

Q. Which of the following is not applicable to commercial paper

a. face value

b. issue price

c. coupon rate

d. none of the above.

  • d. none of the above.

Q. The basic objective of Tandon Committee recommendations is that thedependence of industry on bank should gradually

a. increase,

b. remain stable

c. decrease

d. none of the above

  • c. decrease

Q. Cash discount terms offered by trade creditors never be accepted because

a. benefit in very small

b. cost is very high

c. no sense to pay earlier

d. none of the above.

  • d. none of the above.

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

  • b. cash price outstanding

Q. A short-term lease which is often cancellable is known as

a. finance lease

b. net lease,

c. operating lease,

d. leverage lease

  • c. operating 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

  • b. goods on approval,

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

  • a. lessor
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