FM assgn :38: Parmeet
Select The Blank
Question
The projects having Profitability index of more than ________ will be accepted
Correct Answer one
Your Answer
one
Multiple Choice Single Answer
Question
If the issue of Debentures is having the maturity period of more than 18 months, the
company shall create
Correct Answer Debenture Redemption reserve
Your Answer
True/False
Question
Debenture Redemption reserve
In case of cash credit, the company need not have a formal current account
Correct Answer True
Your Answer
False
Multiple Choice Multiple Answer
Question
Objective of perpetual inventory system are
Correct Answer Maintenance of Bin Cards and Stores ledger in order to know about the stock in quantity
and value at any given point of time , Continuous verification of physical stock to ensure
that the physical balance and the book balance tallies
Your Answer
Maintenance of Bin Cards and Stores ledger in order to know about the stock in quantity
and value at any given point of time , Continuous verification of physical stock to ensure
that the physical balance and the book balance tallies
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 Answer Bonneville and Dewey
Your Answer
Bonneville and Dewey
Multiple Choice Single Answer
Question
From the following data compute Reorder level : Normal usage 40 units per week each,
Minimum usage 15 units per week each, Maximum usage 65 units per week each, Re-order
quantity 400 units, Re-order period 4 to 6 weeks
Correct Answer 390 units
Your Answer
390 units
True/False
Question
The assumptions of capital structure theories is that Operating earnings are not expected
to grow
Correct Answer True
Your Answer
True
Select The Blank
Question
The fixed assets are expressed at ________
Correct Answer Cost - Depreciation
Your Answer
Cost - Depreciation
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
Multiple Choice Multiple Answer
Question
The classification of return on Investment are
Correct Answer Return on Asset , Return on Capital Employed
Your Answer
Return on Asset , Return on Capital Employed
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
Operating cost incurred by the company can be classified into
Correct Answer Variable cost , Fixed cost , Semi-variable cost
Your Answer
Variable cost , Fixed cost , Semi-variable cost
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 Multiple Answer
Question
Fixation of Inventory levels are based on the following propositions
Correct Answer There has to be a constant watch on the actual stock level of
that proper action can be taken , The various levels fixed are
basis and are subject to revision regularly
Your Answer
There has to be a constant watch on the actual stock level of
that proper action can be taken , The various levels fixed are
basis and are subject to revision regularly
various kinds of materials so
not fixed on a permanent
various kinds of materials so
not fixed on a permanent
Multiple Choice Single Answer
Question
Preference shares which stay with the company as long as it is a going concern are known
as
Correct Answer Perpetual preference shares
Your Answer
Redeemable preference shares
Multiple Choice Single Answer
Question
If the issue of Debentures is having the maturity period of more than 18 months, the
company shall appoint a
Correct Answer Debenture Trustee
Your Answer
Debenture Trustee
Multiple Choice Single Answer
Question
Default cost is
Correct Answer the cost which cannot be recovered from the customer due to their inability to pay
Your Answer
administrative cost incurred in collecting the receivables from the customers
Select The Blank
Question
Operating Lease is also referred to as ________ lease
Correct Answer Service
Your Answer
Service
Multiple Choice Single Answer
Question
Which of the following assets get generated during course of operations or get utilized
within one year
Correct Answer Current assets
Your Answer
Current assets
Multiple Choice Single Answer
Question
The Capital Structure decision mainly refers to the decision of
Correct Answer Financing
Your Answer
Financing
Multiple Choice Single Answer
Question
Stock in the beginning results in
Correct Answer Application of funds
Your Answer
Sinking fund
Multiple Choice Multiple Answer
Question
Utility of cash flow analysis
Correct Answer Helps in efficient cash management , helps in internal financial management , Discloses
the movements of cash
Your Answer
Helps in efficient cash management , helps in internal financial management , Discloses
the movements of cash
True/False
Question
Reorder level is calculated as Maximum Lead Time * Minimum Usage
Correct Answer False
Your Answer
True
Multiple Choice Multiple Answer
Question
While using Trade credit as a source of working capital financing, following factor play an
important role
Correct Answer Liquidity position of the company , Earnings of the company over a period of time ,
Relationship of the company with the suppliers
Your Answer
Liquidity position of the company , Earnings of the company over a period of time ,
Relationship of the company with the suppliers
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 Answer Profit
Your Answer
Profit
Select The Blank
Question
The mathematical expression of ________ is ( Minimum level + Maximum level ) / 2
Correct Answer Average level
Your Answer
Average level
Select The Blank
Question
A list of all the material required for a job, process or production order is termed as
________.
Correct Answer Bill of materials
Your Answer
True/False
Question
Bill of materials
The Stock Dividends are more expensive to administer as compared to cash dividends
Correct Answer True
Your Answer
True
Select The Blank
Question
A wrong decision in respect of capital expenditure proposals may disturb the entire
________ structure of the organisation
Correct Answer financial
Your Answer
financial
Match The Following
Question
Correct Answer
Your Answer
Increase in current assets
increases working capital
increases working capital
Increase in current liabilities
decreases working capital
decreases working capital
Increase in liabilities
inflow of funds
inflow of funds
Decrease in liabilities
outflow of funds
outflow of funds
Multiple Choice Single Answer
Question
The ratio which indicates the protection available to the lenders of long term capital in the
form of funds available to pay the interest charges is
Correct Answer Interest coverage ratio
Your Answer
Interest coverage ratio
Multiple Choice Multiple Answer
Question
Advantages of factoring
Correct Answer Factoring is the way in which the company can finance its requirement of Working capital
in respect of receivables , The company can take advantage of the expertise of the factor
in various fields , With the help of factoring the company can be relieved of administrative
responsibilities
Your Answer
Factoring is the way in which the company can finance its requirement of Working capital
in respect of receivables , The company can take advantage of the expertise of the factor
in various fields , With the help of factoring the company can be relieved of administrative
responsibilities
Match The Following
Question
Correct Answer
Your Answer
Financial leverage
indicates firm's ability to use fixed
financial charges to magnify the
effects of changes in earning
before interest and tax on the
firm's earning per share
indicates firm's ability to use fixed
financial charges to magnify the
effects of changes in earning before
interest and tax on the firm's
earning per share
Earnings per share
ratio to measure the profits
available to the equity
shareholders on a per share basis
ratio to measure the profits
available to the equity shareholders
on a per share basis
Price earning ratio
indicates the price currently being
paid in the stock market for every
one rupee of Earning per share
indicates the price currently being
paid in the stock market for every
one rupee of Earning per share
Operating leverage
measures the effect of change in
sales quantity on earnings before
interest and taxes
measures the effect of change in
sales quantity on earnings before
interest and taxes
Select The Blank
Question
Modigliani - Miller approach closely resembles ________ approach
Correct Answer Net operating income
Your Answer
Net operating income
True/False
Question
Re-order level is the highest level of inventory to be maintained above which the inventory
should not rise
Correct Answer False
Your Answer
False
True/False
Question
Debt Service Coverage Ratio is one of the most important ratios calculated by the bankers
of financial institutions giving long term finance to the organisation
Correct Answer True
Your Answer
True
True/False
Question
With limited funds, the company must obtain the optimum combination of acceptable
investment proposals
Correct Answer True
Your Answer
True
Select The Blank
Question
________ ratio will be useful in indicating the symptom of inability to pay dues to financial
institutions
Correct Answer Debt Service Coverage ratio
Your Answer
Debt Service Coverage ratio
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 Answer Too long
Your Answer
Too long
Multiple Choice Multiple Answer
Question
The approaches to compute the cost of equity shares are
Correct Answer Dividend / Price Approach , Realised Yield Approach , Earnings / Price Approach
Your Answer
Dividend / Price Approach , Realised Yield Approach , Earnings / Price Approach
Multiple Choice Single Answer
Question
The Pay Bank period is calculated as
Correct Answer Cash outlay / Annual cash inflow
Your Answer
Cash outlay / Annual cash inflow
Multiple Choice Multiple Answer
Question
In financial analysis, generally the following leverages are computed
Correct Answer Operating leverage , Financial leverage , Combined leverage
Your Answer
Operating leverage , Financial leverage , Combined leverage
Multiple Choice Single Answer
Question
While computing liquid ratio, liquid liability includes all liability except
Correct Answer Bank overdraft
Your Answer
Bank overdraft
True/False
Question
The analysis of different sources and application of cash enables the management to make
reliable cash flow projections for the immediate future
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
The amount of cheques deposited by a Bank awaiting clearance is called
Correct Answer Collection float
Your Answer
Deposit float
Select The Blank
Question
Turnover ratios measures how efficiently the ________ are employed by the firm
Correct Answer Assets
Your Answer
Assets
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