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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-6 section-4

Each section contains 100 MCQs on Financial Management .
51
Financial securities that can be converted into cash at closing to their book value price are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Financial securities that can be converted into cash at closing to their book value price are classified as cash equivalents. Cash equivalents are investments securities that are meant for short-term investing; they have high credit quality and are highly liquid.
52
Discounted cash flow analysis is also classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Discounted cash flow analysis is also classified as time value of money. The time value of money (TVM) is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.
53
Prices of bonds will be decreased if an interest rates
Discuss
Answer & Solution
Answer: Option A
Solution:
Prices of bonds will be decreased if an interest rates rises. An existing bond's price or present value moves in the opposite direction of the change in market interest rates: Bond prices will go up when interest rates go down, and Bond prices will go down when interest rates go up.
54
Right side of balance sheet states the
Discuss
Answer & Solution
Answer: Option C
Solution:
Right side of balance sheet states the assets. An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide a future benefit.
55
Wages and salaries of employees which company owns in this accounts are called
Discuss
Answer & Solution
Answer: Option C
Solution:
Wages and salaries of employees which company owns in this accounts are called accrued expenses and accruals accounts.
56
Securities future value is Rs 1,000,000 and present value of securities is Rs 500,000 with an interest rate of 4.5%, 'N' will be
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
57
If payment of security is paid as Rs 100 at end of year for three years, it is an example of
Discuss
Answer & Solution
Answer: Option D
Solution:
If payment of security is paid as Rs 100 at end of year for three years, it is an example of annuity. An annuity is a contract between you and an insurance company in which you make a lump sum payment or series of payments and, in return, obtain regular disbursements beginning either immediately or at some point in the future.
58
Payment of security if it is made at end of each period such as beginning of year is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Payment of security if it is made at end of each period such as beginning of year is classified as annuity due. An annuity due is a repeating payment that is made at the beginning of each period, such as a rent payment.
59
Net worth is also called
Discuss
Answer & Solution
Answer: Option A
Solution:
Net worth is also called asset net of liabilities. Net worth is the value of all the non-financial and financial assets owned by an institutional unit or sector minus the value of all its outstanding liabilities.
60
An annual rate of 16% if quoted by credit card issuer usually a bank is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
An annual rate of 16% if quoted by credit card issuer usually a bank is classified as annual percentage rate. An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan.