FM assgn :21: Mayur
Select The Blank
Question
The ratio of Market Price per share and Earning per share is termed as ________
Correct
Answer
Your Answer
Price earnings ratio
Price earnings ratio
Multiple Choice Single Answer
Question
Current assets are also referred to as
Correct
Answer
Your Answer
Working Capital
Working Capital
Multiple Choice Multiple Answer
Question
Types of capital budgeting decisions
Correct
Answer
Your Answer
Replacements , Expansion , Diversification
Replacements , Expansion , Diversification
Multiple Choice Single Answer
Question
Which of the following assets get generated during course of operations or get utilized
within one year
Correct
Current assets
Answer
Your Answer
Current assets
Multiple Choice Multiple Answer
Question
Advantages of letter of credit to the Importer
Correct
Answer
Your Answer
the
the
the
the
importer can bargain for better trading terms , he is assured to get proper supply of
goods
importer can bargain for better trading terms , he is assured to get proper supply of
goods
Multiple Choice Single Answer
Question
The effect of Purchase of goods for cash on funds ( cash concept ) is
Correct
Answer
Your Answer
Decrease in cash
No change in cash
Select The Blank
Question
The basic objective of ________ management is to reduce the operating cash
requirement to the minimum possible extent without affecting the routine transactions.
Correct
Cash
Answer
Your Answer
Cash
Multiple Choice Single Answer
Question
Correct
Answer
Your Answer
The Investment decisions are mainly concerned with
Application of funds
Application of funds
Select The Blank
Question
________ leverage also acts as a guideline in setting maximum limit upto which the
company should use the debt capital
Correct
Financial
Answer
Your Answer
Financial
Multiple Choice Single Answer
Question
Net cash inflow is arrived at
Correct
Answer
Your Answer
Revenue after tax add depreciation
Revenue after tax add depreciation
Multiple Choice Multiple Answer
Question
The advantages of leasing for the lessee are
Correct
Answer
Your Answer
It is the quickest method of financing the requirements of long term capital , Avoids risk
of ownership , The payment of lease rents is the tax deductible expenditure
The payment of lease rents is the tax deductible expenditure , It is the quickest method
of financing the requirements of long term capital , Avoids risk of ownership
Multiple Choice Single Answer
Question
Financing consists of the raising, providing, managing of all the money, capital or funds
of any kind to be used in connection with the business' is defined by
Correct
Bonneville and Dewey
Answer
Your Answer
Bonneville and Dewey
True/False
Question
Correct
Answer
Your Answer
Mortgage mode of security pertains to immovable properties like land and buildings
True
True
Multiple Choice Single Answer
Question
Loan Installments appear in the cash budget under the head
Correct
Answer
Your Answer
Non-operating cash outflow
Non-operating cash outflow
Multiple Choice Multiple Answer
Question
The function of Bill of Materials are
Correct
Answer
Your Answer
It may serve as a base for the Production department for placing the material requisition
slips , It gives an indication about the orders to be executed to all the persons concerned
, A bill of material prepared and valued in advance may serve as base for quoting the
price for the job or production order
It may serve as a base for the Production department for placing the material requisition
slips , It gives an indication about the orders to be executed to all the persons concerned
, A bill of material prepared and valued in advance may serve as base for quoting the
price for the job or production order
Multiple Choice Single Answer
Question
Current liabilities consist of
Correct
Answer
Your Answer
Creditors
Creditors
Multiple Choice Single Answer
Question
The Capital Structure decision mainly refers to the decision of
Correct
Answer
Your Answer
Financing
Financing
Multiple Choice Single Answer
Question
The main function of finance under the traditional approach comprises of
Correct
Answer
Your Answer
Procurement of funds
Procurement of funds
Multiple Choice Multiple Answer
Question
The functions of a Finance Controller are :
Correct
Answer
Your Answer
Budgeting , Record Keeping , Annual Reporting
Record Keeping , Annual Reporting , Budgeting
Multiple Choice Multiple Answer
Question
Disadvantages of Preference shares from shareholders point of view
Correct
Answer
Your Answer
Preference Dividend rate is rather modest , Price fluctuation preference shares is greater
than price fluctuation of debentures , Preference shareholders are vulnerable to arbitrary
managerial actions
Preference Dividend rate is rather modest , Price fluctuation preference shares is greater
than price fluctuation of debentures , Preference shareholders are vulnerable to arbitrary
managerial actions
Multiple Choice Single Answer
Question
The value created by the use of resources is more than the total of the input resources is
referred to as
Correct
Profit
Answer
Your Answer
Profit
Multiple Choice Multiple Answer
Question
Under the Financial Analysis of the company done by Credit rating and Information
Services of India Ltd. the following points are covered
Correct
Accounting policies followed by the company , Adequacy of cash flows for fixed capital
Answer
Your Answer
Accounting policies followed by the company , Adequacy of cash flows for fixed capital
Multiple Choice Multiple Answer
Question
If Profit maximization is accepted as the only goal of finance function, it is criticised on
the following grounds
Correct
Ignores risk factor , Does not consider social obligation , Ignores quality aspect of
Answer
benefits associated with a financial course of action
Your Answer
Ignores risk factor , Does not consider social obligation , Ignores quality aspect of
benefits associated with a financial course of action
True/False
Question
Correct
Answer
Your Answer
True/False
Question
Correct
Answer
Your Answer
The Stock Dividends are more expensive to administer as compared to cash dividends
True
True
If the cash is held to take advantage of profit making opportunities arising out of changes
in the value of securities, the cash holding is called Precautionary motive
False
False
Select The Blank
Question
For the selection of the period for which capital expenditure budget should be prepared ,
________ a period may not be useful
Correct
Too long
Answer
Your Answer
Too long
Multiple Choice Single Answer
Question
Net Profit is the difference between Sales and
Correct
Answer
Your Answer
All types of cost
All types of cost
Multiple Choice Single Answer
Question
Own capital of the company includes
Correct
Answer
Your Answer
Shares
Shares
Multiple Choice Multiple Answer
Question
The advantages of ratio analysis are
Correct
Answer
Your Answer
True/False
Question
Correct
Answer
Your Answer
It helps in planning and forecasting , It makes possible comparison of the performance of
the different divisions of the firm , It simplifies the comprehension of financial statements
It helps in planning and forecasting , It makes possible comparison of the performance of
the different divisions of the firm , It simplifies the comprehension of financial statements
In narrow sense funds means only cash resources of the business
True
True
Multiple Choice Multiple Answer
Question
Projects for which profitability is not the criterion are
Correct
Answer
Your Answer
Service Department projects , Welfare projects , Educational projects
Service Department projects , Welfare projects , Educational projects
Match The Following
Question
Correct Answer
Your Answer
Role of Client
Sends the invoice copy
Sends the invoice copy
Without Recourses factoring
risk of non-payment assumed by
factor
risk of non-payment assumed by
factor
With Recourses factoring
risk of non-payment assumed by
selling company
risk of non-payment assumed by
selling company
Role of factor
Follows up
Follows up
Multiple Choice Single Answer
Question
The traditional approach to financial management refers only to the procurement of funds
by
Correct
Corporate entity
Answer
Your Answer
Corporate entity
Multiple Choice Single Answer
Question
Price Earnings ratio is calculated as
Correct
Answer
Your Answer
Market Price per share / Earnings per share
Market Price per share / Earnings per share
Multiple Choice Multiple Answer
Question
Limitations of Average collection period
Correct
Answer
Average Collection period assumes that the credit sales are evenly spread throughout the
year. In practical circumstances, credit sales are not evenly spread throughout the year ,
The amount of credit sales made by company or the normal credit period offered by the
company are not available in the published financial statements
Your Answer
Average Collection period assumes that the credit sales are evenly spread throughout the
year. In practical circumstances, credit sales are not evenly spread throughout the year ,
The amount of credit sales made by company or the normal credit period offered by the
company are not available in the published financial statements
Multiple Choice Single Answer
Question
Increase in the amount of bills payable results in
Correct
Answer
Your Answer
Increase in cash
Increase in cash
Select The Blank
Question
________ committee has extended the recommendations of Nayak committee to all the
business organisations
Correct
Vaz
Answer
Your Answer
Vaz
Multiple Choice Single Answer
Question
The semi-manufactured products which need further processing are termed as
Correct
Answer
Your Answer
Work in Progress
Work in Progress
Match The Following
Question
Correct Answer
Your Answer
Normal Usage * Lead time for
emergency purchases
Danger level
Danger level
Maximum lead time * Maximum
usage
Re-order level
Re-order level
Reorder level + Re-order quantity Maximum level
- ( Minimum usage * Minimum
lead time )
Maximum level
Re-order level - ( Normal usage * Minimum level
Normal lead time )
Minimum level
Select The Blank
Question
Proprietory ratio indicates the relationship between the owner's fund and ________
Correct
Answer
Your Answer
True/False
Question
Correct
Answer
Your Answer
Total assets
Total assets
While calculating funds from operations, non-cash as well as non-business income is
deducted from net profits
True
True
True/False
Question
Correct
Answer
Your Answer
Financial leverage is calculated as ( Sales - Variable cost ) / ( Earnings before Interest
and tax - Interest )
False
False
Multiple Choice Multiple Answer
Question
Situation of capital rationing may involve problems in the form of
Correct
Answer
Your Answer
True/False
Question
Correct
Answer
Your Answer
Project Indivisibility , Mutually dependent project , Multi period projects
Project Indivisibility , Mutually dependent project , Multi period projects
A high debt equity ratio may indicate that the financial stake of the creditors is more than
that of the owners
True
True
Select The Blank
Question
Debt Equity ratio is alternatively called ________ ratios
Correct
Answer
Your Answer
Leverage
Leverage
Select The Blank
Question
________ indicates the symptom of liquidity crisis
Correct
Answer
Your Answer
Current ratio
Current ratio
Multiple Choice Multiple Answer
Question
The causes of undercapitalisation are
Correct
Answer
Your Answer
Company following too conservative policy for paying the dividends , Future earnings
may be underestimated
Company following too conservative policy for paying the dividends , Future earnings
may be underestimated