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-6 section-12

Each section contains 100 MCQs on Financial Management .

Money Discount Rate if equal to:

A) (1 + Inflation Rate) (1 + Real Rate) - 1 B) (1 + Inflation Rate) 4 - (1 + Real Rate) - 1 C) (1 + Real Rate) 4 - (1 + Inflation Rate) - 1 D) (1 + Real Rate) + (1 + Inflation Rate) - 1

Discuss

Answer & Solution

Answer: Option A

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

A Sound Capital Budgeting technique is based on:

A) Cash Flows B) Accounting Profit C) Interest Rate on Borrowings D) Last Dividend Paid

Discuss

Answer & Solution

Answer: Option A

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

Which of the following is a measure of Debt Service capacity of a firm?

A) Current Ratio B) Acid Test Ratio C) Interest Coverage Ratio D) Debtors Turnover

Discuss

Answer & Solution

Answer: Option C

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

Which of the following is not used in Capital Budgeting?

A) Time Value of Money B) Sensitivity Analysis C) Net Assets Method D) Cash Flows

Discuss

Answer & Solution

Answer: Option C

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

Receivables Management deals with:

A) Receipts of raw materials B) Debtors collection C) Creditors management D) Inventory management

Discuss

Answer & Solution

Answer: Option B

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

Which of the following is not included in cost of inventory?

A) Purchase Cost B) Transport in Cost C) Import Duty D) Selling Costs

Discuss

Answer & Solution

Answer: Option D

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

Which of the following is true for a company which uses continuous review inventory system?

A) Order Interval is fixed B) Order Interval varies C) Order Quantity is fixed D) Both A and C

Discuss

Answer & Solution

Answer: Option B

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

Operating leverage arises because of:

A) Fixed Cost of Production B) Fixed Interest Cost C) Variable Cost D) None of the above

Discuss

Answer & Solution

Answer: Option A

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

Operating leverage works when:

A) Sales increases B) Sales decreases C) Both A and B D) None of A and B

Discuss

Answer & Solution

Answer: Option C

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

Which is the most expensive source of funds?

A) New Equity Shares B) New Preference Shares C) New Debts D) Retained Earnings

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