Financial Management MCQ Questions and Solutions with Explanations

Home

Competitive Exams MCQs

Aptitude English Verbal Reasoning Non Verbal Reasoning General Knowledge(GK) General Science(GS) Data Interpretation(DI) Banking Awareness Current Affairs

Computer Fundatmental MCQs

Computer Fundamentals Microsoft Word Microsoft Excel MS Power Point Tally Operating System Python AI(Artificial Intelligence)

Engineering Subjects MCQs

Computer Science Electronics & Communication Mechanical Engineering Civil Engineering Electrical Engineering

More Engineering MCQs

Chemical Engineering Automobile Engineering Biotechnology Mining Engineering Geological Engineering Metallurgical Engineering

Engineering Core

Engineering Mathematics Engineering Physics Engineering Chemistry

Computer Fundamentals MCQs

Computer Fundamentals Microsoft Word Microsoft Excel MS Power Point Tally Operating System Networking Database SQL MySQL

Programming MCQs

C Programming C++ Programming Java Python PHP JavaScript

Advanced Programming MCQs

Artificial Intelligence Machine Learning Data Science Cloud Computing Hadoop IoT

Graduation & PG

Commerce Management Law Agriculture Sociology Psychology Home Science Mass Communication Political Science Psychology

Resources

Current Affairs Interview Blog

Exam Categories

SSC Exams Railway Exams All Exams

SSC Exams

SSC CGL SSC CHSL SSC MTS SSC CPO SSC GD SSC JHT SSC Selection Post SSC Stenographer SSC JE

Railway Exams

RRB ALP RRB Technician RRB Section Controller RRB JE RRB Paramedical RRB Group D

Popular Exams

SSC CGL SSC CHSL SSC MTS RRB NTPC (Graduate) RRB Group D RRB ALP RRB Technician RRB Section Controller

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-4 section-11

Each section contains 100 MCQs on Financial Management .

Cost of Capital for Government securities is also known as:

A) Risk-free Rate of Interest B) Maximum Rate of Return C) Rate of Interest on Fixed Deposits D) None of the above

Discuss

Answer & Solution

Answer: Option A

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

Cost of Equity Share Capital is more than cost of debt because:

A) Face value of debentures is more than face value of shares B) Equity shares have higher risk than debt C) Equity shares are easily saleable D) All of the three above

Discuss

Answer & Solution

Answer: Option B

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

80% of sales of Rs. 10,00,000 of a firm are on credit. It has a receivable turnover of 8. What is the average collection period (360 days a year) and average debtors of the firm?

A) 45 days and Rs. 1,00,000 B) 360 days and Rs. 1,00,000 C) 45 days and Rs. 8,00,000 D) 360 days and Rs. 1,25,000

Discuss

Answer & Solution

Answer: Option A

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

Marginal cost of capital is the cost of:

A) Additional Sales B) Additional Funds C) Additional Interests D) None of the above

Discuss

Answer & Solution

Answer: Option B

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

In capital budgeting, the term Capital Rationing implies:

A) That no retained earnings available B) That limited funds are available for investment C) That no external funds can be raised D) That no fresh investment is required in current year

Discuss

Answer & Solution

Answer: Option B

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

Debt Financing is a cheaper source of finance because of:

A) Time Value of Money B) Rate of Interest C) Tax-deductibility of Interest D) Dividends not payable to lenders

Discuss

Answer & Solution

Answer: Option C

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

Payment to creditors is a manifestation of cash held for:

A) Transactionary Motive B) Precautionary Motive C) Speculative Motive D) All of the above

Discuss

Answer & Solution

Answer: Option A

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

Dividend Payout Ratio is:

A) PAT ÷ Capital B) DPS ÷ EPS C) Pref. Dividend ÷ PAT D) Pref. Dividend ÷ Equity Dividend

Discuss

Answer & Solution

Answer: Option B

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

5Cs of the credit does not include:

A) Collateral B) Character C) Conditions D) None of the above

Discuss

Answer & Solution

Answer: Option D

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

Securitization is related to conversion of:

A) Receivables B) Stock C) Investments D) Creditors

Discuss

Answer & Solution

Answer: Option A

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

1 2 3 4 5 6 7 8 9 10

Financial Management MCQ Questions and Solutions with Explanations | Commerce