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-13

Each section contains 100 MCQs on Financial Management .

Which of the following is not a motive to hold cash?

A) Transactionary Motive B) Precautionary Motive C) Capital Investment D) None of the above

Discuss

Answer & Solution

Answer: Option C

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

If a company sells its receivable to another party to raise funds, it is known as:

A) Securitization B) Factoring C) Pledging D) None of the above

Discuss

Answer & Solution

Answer: Option B

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

The Transaction Motive for holding cash is for:

A) Safety Cushion B) Daily Operations C) Purchase of Assets D) Payment of Dividends

Discuss

Answer & Solution

Answer: Option B

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

The term capital structure denotes:

A) Total of Liability side of Balance Sheet B) Equity Funds, Preference Capital and Long-term Debt C) Total Shareholders Equity D) Types of Capital issued by a Company

Discuss

Answer & Solution

Answer: Option B

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

Dividend declared by a company must be paid in:

A) 20 days B) 30 days C) 32 days D) 42 days

Discuss

Answer & Solution

Answer: Option B

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

Financial planning starts with the preparation of:

A) Master Budget B) Cash Budget C) Balance Sheet D) None of the above

Discuss

Answer & Solution

Answer: Option D

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

In order to calculate the proportion of equity financing used by the company, the following should be used:

A) Authorised Share Capital B) Equity Share Capital plus Reserves and Surplus C) Equity Share Capital plus Preference Share Capital D) Equity Share Capital plus Long-term Debt

Discuss

Answer & Solution

Answer: Option B

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

Miller-Orr Model deals with

A) Optimum Cash Balance B) Optimum Finished Goods C) Optimum Receivables D) All 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 studied with the help of financial leverage?

A) Marketing Risk B) Interest Rate Risk C) Foreign Exchange Risk D) Financing Risk

Discuss

Answer & Solution

Answer: Option D

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

Which of the following is incorrect for NOI?

A) k₀ is constant B) k_d is constant C) k_e is constant D) k_d & k₀ are constant

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