Financial management Archives - Page 5 of 112 - MCQ and Quiz for Exams

41. Offering cash discount to customers result in _______.

reducing the average collection period

increasing the average collection period

increasing sales

decreasing sales

Detailed SolutionOffering cash discount to customers result in _______.

42. Which of the following appearing in the balance, generates tax advantage and hence affects the c, structure decision?

Reserves and Surplus

Long-term Debt

Preference Share Capital

Equity Share Capital

Detailed SolutionWhich of the following appearing in the balance, generates tax advantage and hence affects the c, structure decision?

43. Stockholders that do not get benefits even if company’s earnings grow are classified as

preferred stockholders

common stockholders

hybrid stockholders

debt holders

Detailed SolutionStockholders that do not get benefits even if company’s earnings grow are classified as

44. Stock market theory which states that stocks are in equilibrium and impossible for investors to beat market is classified as an

inefficient market hypothesis

efficient market hypothesis

efficient stock hypothesis

inefficient stock hypothesis

Detailed SolutionStock market theory which states that stocks are in equilibrium and impossible for investors to beat market is classified as an

45. If the fixed cost of production is zero, which one of the following is correct?

OL is zero

FL is zero

CL is zero

None of the above

Detailed SolutionIf the fixed cost of production is zero, which one of the following is correct?

46. Project whose cash flows are less than capital invested for required rate of return then net present value will be

negative

zero

positive

independent

Detailed SolutionProject whose cash flows are less than capital invested for required rate of return then net present value will be

47. Return on Investment may be improved by:

Increasing Turnover

Reducing Expenses

Increasing Capital Utilization

All of the above

Detailed SolutionReturn on Investment may be improved by:

48. ABC Analysis is useful for analyzing the inventories:

Based on their quality

Based on their usage and value

Based on physical volume

All of the above

Detailed SolutionABC Analysis is useful for analyzing the inventories:

49. The amount of current assets that varies with seasonal requirements is referred to as __________ working capital.

Permanent

Net

Temporary

Gross

Detailed SolutionThe amount of current assets that varies with seasonal requirements is referred to as __________ working capital.

50. Which of the following is a function of the finance manager?

Mobilizing funds

Risk returns trade off

Deployment of funds

Control over the uses of funds E. All of above

Detailed SolutionWhich of the following is a function of the finance manager?

Page 1 Page 2 Page 3 Page 4 Page 5

Test 1 Test 2 Test 3 Test 4 Test 5 Test 6 Test 7 Test 8 Test 9 Test 10 Test 11 Test 12 Test 13 Test 14 Test 15 Test 16 Test 17 Test 18 Test 19 Test 20 Test 21 Test 22 Test 23

Exit mobile version