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Financial management

31. Graph which is plotted for projected net present value and capital rates is called

[amp_mcq option1=”net loss profile” option2=”net gain profile” option3=”net future value profile” option4=”net present value profile” correct=”option4″]

Detailed SolutionGraph which is plotted for projected net present value and capital rates is called

32. If a firm has ke > r the Walter’s Model suggests for:

[amp_mcq option1=”0% Payout” option2=”100% Payout” option3=”50% Payout” option4=”25% Payout” correct=”option1″]

Detailed SolutionIf a firm has ke > r the Walter’s Model suggests for:

33. Which of the following is not a benefit of carrying inventories?

[amp_mcq option1=”Reduction in ordering cost” option2=”Avoiding lost sales” option3=”Reducing carrying cost” option4=”Avoiding production shortages” correct=”option1″]

Detailed SolutionWhich of the following is not a benefit of carrying inventories?

34. An information uses by investors for expecting future earnings is all recorded in

[amp_mcq option1=”five years report” option2=”annual report” option3=”stock report” option4=”exchange report” correct=”option2″]

Detailed SolutionAn information uses by investors for expecting future earnings is all recorded in

35. Type of bonds that pays no coupon payment but provides little appreciation are classified as

[amp_mcq option1=”depreciated bond” option2=”interest bond” option3=”zero coupon bond” option4=”appreciation bond” correct=”option3″]

Detailed SolutionType of bonds that pays no coupon payment but provides little appreciation are classified as

36. Which of the following is not a part of credit policy?

[amp_mcq option1=”Collection Effort” option2=”Cash Discount” option3=”Credit Standard” option4=”Paying Practices of Debtors” correct=”option1″]

Detailed SolutionWhich of the following is not a part of credit policy?

37. Which of the following is true regarding the expected return of a portfolio?

[amp_mcq option1=”It is a weighted average only for stock portfolios” option2=”It can only be positive” option3=”It can never be above the highest individual return” option4=”All of the above are true” correct=”option4″]

Detailed SolutionWhich of the following is true regarding the expected return of a portfolio?

38. Indexed bonds that are issued by linking payments to inflation are classified as

[amp_mcq option1=”treasury inflation protected securities” option2=”premium protected securities” option3=”risk protected securities” option4=”liquidity protected securities” correct=”option1″]

Detailed SolutionIndexed bonds that are issued by linking payments to inflation are classified as

39. In case of Net Income Approach, the Cost of equity is:

[amp_mcq option1=”Constant” option2=”Increasing” option3=”Decreasing” option4=”None of the above” correct=”option4″]

Detailed SolutionIn case of Net Income Approach, the Cost of equity is:

40. Claim against assets are represented by

[amp_mcq option1=”saved earning” option2=”retained earnings” option3=”maintained earnings” option4=”saving account earning” correct=”option2″]

Detailed SolutionClaim against assets are represented by

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