FM assgn :22: Mayur
Select The Blank
Question
In case of Mortgage, the party in whose favour the interest is so transferred is called
________
Correct Answer Mortgagee
Your Answer
True/False
Question
Mortgager
As per the SEBI guidelines revaluation reserve can be used for issue of bonus share
Correct Answer False
Your Answer
False
Select The Blank
Question
Operating Lease is also referred to as ________ lease
Correct Answer Service
Your Answer
Service
Multiple Choice Multiple Answer
Question
The depreciation is being charged for the following assets
Correct Answer Plant and Machinery , Building
Your Answer
Plant and Machinery , Building
Multiple Choice Single Answer
Question
The investor is prepared to pay the market price of the shares as he expects not only the
payment of the dividend but also expects a growth in the dividend rate at a uniform rate
perpetually under the
Correct Answer Dividend /Price + Growth rate Approach
Your Answer
Dividend /Price + Growth rate Approach
Multiple Choice Single Answer
Question
The relationship between the earnings belonging to the equity shareholders and the
amount finally paid to them by way of dividend is termed as
Correct Answer Dividend payment ratio
Your Answer
Dividend payment ratio
Multiple Choice Single Answer
Question
The cost which remains constant upto a certain sales revenue and increases if the sales
revenue increases beyond a certain point is termed as
Correct Answer Semi-variable cost
Your Answer
Fixed cost
Multiple Choice Single Answer
Question
From the following data, work out the Economic order quantity : Annual Demand : 5000
units, Ordering cost Rs. 60 per order, Price per unit Rs. 100, Inventory carrying cost is
15% on average inventory
Correct Answer 200 units
Your Answer
200 units
Multiple Choice Single Answer
Question
Mr. A is given the opportunity to receive Rs. 10,000 after two years, when he can earn
interest of 10% p.a. on his investment, what should be the amount which he should
invest today so that he may be able to receive Rs. 10,000 after two years
Correct Answer Rs. 8,264
Your Answer
Rs. 8,264
Multiple Choice Multiple Answer
Question
International financial function of the organisation comprises of :
Correct Answer Study of flow of funds beyond national boundaries , Exchange of currencies
Your Answer
Study of flow of funds beyond national boundaries , Exchange of currencies
Multiple Choice Single Answer
Question
The company can raise the funds in the form of Public deposits which can be used
Correct Answer For any purpose
Your Answer
For any purpose
Multiple Choice Single Answer
Question
Minimum application money payable by the applicant along with the application shall not
be less than
Correct Answer 25% of the issue price
Your Answer
25% of the issue price
Multiple Choice Multiple Answer
Question
The book-keeping and accounting activities in relation to the receivables management
undertaken by the factor includes
Correct Answer Maintenance of debtors ledger , Various periodical reports about outstanding from the
customers , Age-wise analysis of the outstanding
Your Answer
Maintenance of debtors ledger , Various periodical reports about outstanding from the
customers , Age-wise analysis of the outstanding
Select The Blank
Question
Preparation of Financial plan at the time of company promotion is ________ duty of the
finance executive
Correct Answer Non-recurring
Your Answer
Non-recurring
Multiple Choice Multiple Answer
Question
External sources of funds are
Correct Answer Funds from long term loans , Sale of fixed assets
Your Answer
Funds from long term loans , Sale of fixed assets
Match The Following
Question
Correct Answer
Your Answer
Recurring duties of finance
executive
Raising of funds
Raising of funds
Objective of finance function
Profit maximization
Profit maximization
Treasurer
Cost management
Cost management
Finance Controller
Internal Auditing
Internal Auditing
Match The Following
Question
Correct Answer
Your Answer
Advantage of Net present value
considers cash inflows from the
project throughout its life
considers cash inflows from the
project throughout its life
Disadvantage of Accounting rate
of return
uses profits after depreciation and uses profits after depreciation and
taxes and not the cash inflows for taxes and not the cash inflows for
evaluating the projects
evaluating the projects
Disadvantage of Pay back period
ignores time value of money
Advantage of Discounted Pay back considers time value of money
period
ignores time value of money
considers time value of money
Multiple Choice Multiple Answer
Question
The external users of financial statements are
Correct Answer Lenders , Suppliers
Your Answer
Lenders , Suppliers
Select The Blank
Question
The ________ has been empowered to order the company that fails to repay any deposit
to make the repayment of such deposits
Correct Answer Company Law board
Your Answer
Company Law board
Select The Blank
Question
The most crucial financial decisions of the organisation are taken by ________
Correct Answer Board of Directors
Your Answer
Board of Directors
True/False
Question
Accounts Receivable is an example of current assets
Correct Answer True
Your Answer
True
Select The Blank
Question
Cost management is the function of a ________.
Correct Answer Treasurer
Your Answer
Treasurer
Select The Blank
Question
The projects having Profitability index of less than ________ will be rejected
Correct Answer one
Your Answer
one
Multiple Choice Single Answer
Question
From the following compute the 'Current Ratio' : Sundry Debtors Rs. 40,000/-, Prepaid
exps Rs. 20,000/-, Short term investment Rs. 10,000/-, Bills Payable Rs. 10,000/-,
Sundry Creditors Rs. 20,000/-, Debentures Rs. 1,00,000/-, Inventories Rs. 20,000/-,
Outstanding expenses Rs. 20,000/-.
Correct Answer 1.8
Your Answer
1.8
Multiple Choice Multiple Answer
Question
Overall profitability ratio includes
Correct Answer Return on Asset , Return on Shareholders Funds
Your Answer
Return on Asset , Return on Shareholders Funds
Multiple Choice Single Answer
Question
Technical terminology used to invest in the current assets being
Correct Answer Working Capital Management
Your Answer
Working Capital Management
Multiple Choice Multiple Answer
Question
The recurring duties of Finance Executive includes
Correct Answer Fixed Assets management , Control of funds , Working Capital Management
Your Answer
Working Capital Management , Fixed Assets management , Control of funds
Multiple Choice Multiple Answer
Question
The sources of cash are
Correct Answer Long term loans , cash from other sources
Your Answer
Long term loans , cash from other sources
True/False
Question
Turnover ratios indicate the efficiency of the organisation to use the various kinds of
assets by converting them in the form of Sales
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
The characteristics of assets are
Correct Answer They are acquired for use for long periods , They are ordinarily not meant for resale
Your Answer
They are acquired for use for long periods , They are ordinarily not meant for resale
Multiple Choice Multiple Answer
Question
Gross Profit can be increased by either
Correct Answer Reduced
Reduced
Your Answer
Reduced
Reduced
Production
Production
Production
Production
cost, sales price
cost , Increased
cost, sales price
cost , Increased
remaining the same , Increased Sales price,
Sales price, Production cost remaining the same
remaining the same , Increased Sales price,
Sales price, Production cost remaining the same
Select The Blank
Question
________ approach is the mean between two extreme approaches of net income
approach and net operating income approach
Correct Answer Traditional
Your Answer
True/False
Question
Traditional
Budgeting is the main function of a Treasurer
Correct Answer False
Your Answer
False
True/False
Question
The operating profit is computed as Sales Revenue Less Variable Operating Cost Less
Fixed Operating cost
Correct Answer True
Your Answer
True/False
Question
True
The combination of irrevocable and confirmed letter of credit can be considered to be a
guaranteed payment on the part of the exporter
Correct Answer True
Your Answer
True
Select The Blank
Question
The situation of watered capital may arise due to ________
Correct Answer Company pays higher price to the vendors of the assets transferred
Your Answer
Company pays higher price to the vendors of the assets transferred
True/False
Question
Financial statements do not provide information about sources of raising funds as well as
the applications of these funds
Correct Answer True
Your Answer
True
Select The Blank
Question
The dealing with the financial matters of the government is termed as ________ field of
finance
Correct Answer Public
Your Answer
Public
Multiple Choice Single Answer
Question
The motive of the company to hold inventory to guard against the risk of unpredictable
changes in demand and supply forces is known as
Correct Answer Precautionary motive
Your Answer
Precautionary motive
True/False
Question
Wealth maximization goal is only an extension of Profit maximization goal of the
organisation
Correct Answer True
Your Answer
True/False
Question
True
In an organisation, Dividend distribution is the function of a Finance Controller
Correct Answer False
Your Answer
False
Select The Blank
Question
Modigliani - Miller approach closely resembles ________ approach
Correct Answer Net operating income
Your Answer
Net operating income
Select The Blank
Question
The projects having maximum positive Net present value will be ranked ________
Correct Answer highest
Your Answer
highest
True/False
Question
The approved credit rating agencies prevailing in the country are promoted by the
government controlled organisations
Correct Answer True
Your Answer
True
True/False
Question
Following lenient dividend policy without bothering much about building up the reserves
may be the cause for undercapitalisation
Correct Answer False
Your Answer
False