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-5 section-13

Each section contains 100 MCQs on Financial Management .

Which of the following is not true for capital budgeting?

A) Sunk costs are ignored B) Opportunity costs are excluded C) Incremental cash flows are considered D) Relevant cash flows are considered

Discuss

Answer & Solution

Answer: Option B

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

Cash discount terms offered by trade creditors never be accepted because:

A) Benefit in very small B) Cost is very high C) No sense to pay earlier D) None of the above

Discuss

Answer & Solution

Answer: Option D

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

Which of the following is not considered by Miller-Orr Model?

A) Variability in cash requirement B) Cost of transaction C) Holding cost D) Total annual requirement of cash

Discuss

Answer & Solution

Answer: Option D

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

Credit Policy of a firm should involve a trade-off between increased:

A) Sales and Increased Profit B) Profit and Increased Costs of Receivables C) Sales and Cost of goods sold D) None of the above

Discuss

Answer & Solution

Answer: Option B

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

Benefit of 'Trading on Equity' is available only if:

A) Rate of Interest < Rate of Return B) Rate of Interest > Rate of Return C) Both A and B D) None of A and B

Discuss

Answer & Solution

Answer: Option A

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

'Bird in hand' argument is given by:

A) Walker's Model B) Gordon's Model C) MM Mode D) Residuals Theory

Discuss

Answer & Solution

Answer: Option B

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

Dividends are paid out of:

A) Accumulated Profit B) Gross Profit C) Profit after Tax D) General Reserve

Discuss

Answer & Solution

Answer: Option C

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

Which of the following is not a spontaneous source of short-term funds?

A) Trade credit B) Accrued expenses C) Provision for dividend D) All of the above

Discuss

Answer & Solution

Answer: Option C

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

Trading on Equity is:

A) Always beneficial B) May be beneficial C) Never beneficial D) None of the above

Discuss

Answer & Solution

Answer: Option B

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

Capital Budgeting is a part of:

A) Investment Decision B) Working Capital Management C) Marketing Management D) Capital Structure

Discuss

Answer & Solution

Answer: Option A

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