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Financial management

31. Default free financial security sells by U.S treasury is classified as

[amp_mcq option1=”U.S treasury bills” option2=”commercial paper” option3=”certificate of deposit” option4=”mutual funds” correct=”option1″]

Detailed SolutionDefault free financial security sells by U.S treasury is classified as

32. An operating cash flows is Rs 12000 and gross fixed asset expenditure is Rs 5000 then free cash flow will be

[amp_mcq option1=”-Rs 7,000.00″ option2=”Rs 7,000.00″ option3=”Rs 17,000.00″ option4=”-Rs 17,000.00″ correct=”option2″]

Detailed SolutionAn operating cash flows is Rs 12000 and gross fixed asset expenditure is Rs 5000 then free cash flow will be

33. Ability to trade at net price very quickly is classified as

[amp_mcq option1=”original trading” option2=”liquidity” option3=”offline trading” option4=”fixed price trading” correct=”option2″]

Detailed SolutionAbility to trade at net price very quickly is classified as

34. ___________ are financial assets.

[amp_mcq option1=”Bonds” option2=”Machines” option3=”Stocks” option4=”A and C” correct=”option4″]

Detailed Solution___________ are financial assets.

35. NPV of a proposal, as calculated by RADR real CE Approach will be:

[amp_mcq option1=”Same” option2=”Unequal” option3=”Both A and B” option4=”None of A and B” correct=”option2″]

Detailed SolutionNPV of a proposal, as calculated by RADR real CE Approach will be:

36. Which of the following represents the rate at which a company can grow from internal sources?

[amp_mcq option1=”return on assets” option2=”sustainable growth rate” option3=”adjusted EPS” option4=”return on equity” correct=”option2″]

Detailed SolutionWhich of the following represents the rate at which a company can grow from internal sources?

37. Bonds issued by local and state governments with default risk are

[amp_mcq option1=”municipal bonds” option2=”corporation bonds” option3=”default bonds” option4=”zero bonds” correct=”option1″]

Detailed SolutionBonds issued by local and state governments with default risk are

38. Until word of preferred is used, an equity in balance sheet is treated as

[amp_mcq option1=”common equity” option2=”preferred equity” option3=”due equity” option4=”common perpetuity” correct=”option1″]

Detailed SolutionUntil word of preferred is used, an equity in balance sheet is treated as

39. A type of business ownership in which two or more entities join together for profit purpose is classified as

[amp_mcq option1=”partnership” option2=”joint business” option3=”joint profit” option4=”corporate business” correct=”option1″]

Detailed SolutionA type of business ownership in which two or more entities join together for profit purpose is classified as

40. The key item for investors on the income statement is______________.

[amp_mcq option1=”sales” option2=”gross profit” option3=”operating expenses” option4=”after-tax net income” correct=”option4″]

Detailed SolutionThe key item for investors on the income statement is______________.

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