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-8 section-11

Each section contains 100 MCQs on Financial Management .

A proposal is not a Capital Budgeting proposal if it:

A) is related to fixed assets B) brings long-term benefits C) brings short-term benefits only D) has very large investment

Discuss

Answer & Solution

Answer: Option C

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

Bad debt cost is not borne by factor in case of:

A) Pure Factoring B) Without Recourse Factoring C) With Recourse Factoring D) None of the above

Discuss

Answer & Solution

Answer: Option C

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

Financial Leverage arises because of:

A) Fixed cost of production B) Variable cost C) Interest cost D) None of the above

Discuss

Answer & Solution

Answer: Option C

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

High degree of financial leverage means:

A) High debt proportion B) Lower debt proportion C) Equal debt and equity D) No debt

Discuss

Answer & Solution

Answer: Option A

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

Inventory holding cost may include:

A) Material purchase cost B) Penalty charge for default C) Interest on loan D) None of the above

Discuss

Answer & Solution

Answer: Option D

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

In Risk-adjusted Discount Rate method, the normal rate of discount is:

A) Increased B) Decreased C) Unchanged D) None of the above

Discuss

Answer & Solution

Answer: Option A

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

A lease which is generally not cancellable and covers full economic life of the asset is known as:

A) Sale and Leaseback B) Operating Lease C) Finance Lease D) Economic Lease

Discuss

Answer & Solution

Answer: Option C

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

Which of the following represents passive dividend policy?

A) that dividend is paid as a % of EPS B) that dividend is paid as a constant amount C) that dividend is paid after retaining profits for reinvestment D) All of the above

Discuss

Answer & Solution

Answer: Option C

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

Out of the following, what is not true in respect of factoring?

A) Continuous arrangement between Factor and Seller B) Sale of Receivables to the factor C) Factor provides cost free finance to seller D) None of the above

Discuss

Answer & Solution

Answer: Option C

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

Which is not a service of a factor?

A) Administrating Sales Ledger B) Advancing against Credit Sales C) Assuming bad Debt losses D) None of the above

Discuss

Answer & Solution

Answer: Option D

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