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Financial Management MCQ Questions and Solutions with Explanations | Commerce

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-3 section-4

Each section contains 100 MCQs on Financial Management .
21
Noncash revenues and noncash charges if it subtracted from net income is equal to
Discuss
Answer & Solution
Answer: Option C
Solution:
Noncash revenues and noncash charges if it subtracted from net income is equal to net cash flow. Net cash flow refers to the difference between a company's cash inflows and outflows in a given period. In the strictest sense, net cash flow refers to the change in a company's cash balance as detailed on its cash flow statement.
22
An information uses by investors for expecting future earnings is all recorded in
Discuss
Answer & Solution
Answer: Option B
Solution:
An information uses by investors for expecting future earnings is all recorded in annual report. An annual report is a comprehensive report on a company's activities throughout the preceding year.
23
In calculation of net cash flow, deferred tax payments are classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
In calculation of net cash flow, deferred tax payments are classified as non-cash charges. A non-cash charge is a write-down or accounting expense that does not involve a cash payment.
24
Land, buildings, and factory fixed equipment are classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Land, buildings, and factory fixed equipment are classified as tangible asset. A tangible asset is an asset that has a physical form.
25
Rate of return that an investment provides its investor is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Rate of return that an investment provides its investor is classified as internal rate of return. The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
26
Method of inventory recording gives lower cost of goods sold in income statement is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Method of inventory recording gives lower cost of goods sold in income statement is classified as First in first out. First in, first out (FIFO) is an asset-management and valuation method in which the assets produced or acquired first are sold, used or disposed of first and may be used by an individual or a corporation.
27
Type of interest rates consist of
Discuss
Answer & Solution
Answer: Option D
Solution:
Type of interest rates consist of nominal rates, periodic rates and effective annual rates.
28
Future value of interest if it is calculated once a year is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Future value of interest if it is calculated once a year is classified as annual compounding. Future value is the value of an asset at a specific date. It measures the nominal future sum of money that a given sum of money is "worth" at a specified time in the future assuming a certain interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function.
29
An interest rate which is paid by money borrower and charged by lender is considered as
Discuss
Answer & Solution
Answer: Option B
Solution:
An interest rate which is paid by money borrower and charged by lender is considered as periodic rate. A periodic interest rate can be charged on a loan or realized on an investment over a specific period of time.
30
In calculation of time value of money, 'PMT' represents
Discuss
Answer & Solution
Answer: Option B
Solution:
In calculation of time value of money, 'PMT' represents payment.