Financial Management MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13

31.
Net Profit Ratio Signifies:

A. Operational Profitability

B. Liquidity Position

C. Solvency

D. Profit

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32.
Gordon's Model of dividend relevance is same as:

A. No-growth Model of equity valuation

B. Constant growth Model of equity valuation

C. Price-Earning Ratio

D. Inverse of Price Earnings Ratio

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33.
Which of the following is a liability of a bank?

A. Treasury Bills

B. Commercial Papers

C. Certificate of Deposits

D. Junk Bonds

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34.
In Current Ratio, Current Assets are compared with:

A. Current Profit

B. Current Liabilities

C. Fixed Assets

D. Equity Share Capital

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35.
Difference between the bank balance as per Cash Book and Pass Book may be due to:

A. Overdraft

B. Float

C. Factoring

D. None of the above

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36.
Inventory is generally valued as lower of:

A. Market Price and Replacement Cost

B. Cost and Net Realizable Value

C. Cost and Sales Value

D. Sales Value and Profit

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37.
Profitability Index, when applied to Divisible Projects, impliedly assumes that:

A. Project cannot be taken in parts

B. NPV is linearly proportionate to part of the project taken up

C. NPV is additive in nature

D. Both B and C

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38.
A Current Ratio of less than one means:

A. Current Liabilities < Current Assets

B. Fixed Assets > Current Assets

C. Current Assets < Current Liabilities

D. Share Capital > Current Assets

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39.
A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio?

A. 20%

B. 50%

C. 10%

D. 40%

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40.
If the fixed cost of production is zero, which one of the following is correct?

A. OL is zero

B. FL is zero

C. CL is zero

D. None of the above

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Financial Management MCQ Questions and Solutions with Explanations | Commerce

31. Net Profit Ratio Signifies:

Answer & Solution

32. Gordon's Model of dividend relevance is same as:

Answer & Solution

33. Which of the following is a liability of a bank?

Answer & Solution

34. In Current Ratio, Current Assets are compared with:

Answer & Solution

35. Difference between the bank balance as per Cash Book and Pass Book may be due to:

Answer & Solution

36. Inventory is generally valued as lower of:

Answer & Solution

37. Profitability Index, when applied to Divisible Projects, impliedly assumes that:

Answer & Solution

38. A Current Ratio of less than one means:

Answer & Solution

39. A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio?

Answer & Solution

40. If the fixed cost of production is zero, which one of the following is correct?

Answer & Solution

Read More Section(Financial Management)

31.
Net Profit Ratio Signifies:

32.
Gordon's Model of dividend relevance is same as:

33.
Which of the following is a liability of a bank?

34.
In Current Ratio, Current Assets are compared with:

35.
Difference between the bank balance as per Cash Book and Pass Book may be due to:

36.
Inventory is generally valued as lower of:

37.
Profitability Index, when applied to Divisible Projects, impliedly assumes that:

38.
A Current Ratio of less than one means:

39.
A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio?

40.
If the fixed cost of production is zero, which one of the following is correct?