Financial Management MCQ Questions and Solutions with Explanations

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Financial Management MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Financial Management MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-2 section-11

Each section contains 100 MCQs on Financial Management .

Which of the following assumes constant k_d and k_c?

A) Net Income Approach B) Net Operating Income Approach C) Traditional Approach D) MM Model

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Combined leverage can be used to measure the relationship between:

A) EBIT and EPS B) PAT and EPS C) Sales and EPS D) Sales and EBIT

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Feasibility Set Approach to Capital Rationing can be applied in:

A) Accept-reject situations B) Divisible projects C) Mutually exclusive projects D) None of the above

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Which of the following is not an objective of cash management?

A) Maximization of cash balance B) Minimization of cash balance C) Optimization of cash balance D) Zero cash balance

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Cost of not carrying sufficient inventory is known as:

A) Carrying Cost B) Holding Cost C) Total Cost D) Stock-out Cost

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Which of the following is a risk factor in capital budgeting?

A) Industry specific risk factors B) Competition risk factors C) Project specific risk factors D) All of the above

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

In MM-Model, irrelevance of capital structure is based on:

A) Cost of Debt and Equity B) Arbitrage Process C) Decreasing k₀ D) All of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Financial break-even level of EBIT is:

A) Intercept at Y-axis B) Intercept at X-axis C) Slope of EBIT-EPS line D) None of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Which of the following is not an element of credit policy?

A) Credit Terms B) Collection Policy C) Cash Discount Terms D) Sales Price

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Real Discount Rate is equal to:

A) (1 + Inf. Rate) (1 + Money D Rate) - 1 B) (1 + Money D Rate) + (1 + Inf. Rate) - 1 C) (1 + Money D Rate) 4 - (1 + Inf. Rate) - 1 D) (1 + Money D Rate) - (1 + Inf. Rate) - 1

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

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Financial Management MCQ Questions and Solutions with Explanations | Commerce