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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-8 section-4

Each section contains 100 MCQs on Financial Management .
71
Dividends paid to common shareholders and divided by common shares outstanding are equals to
Discuss
Answer & Solution
Answer: Option B
Solution:
Dividends paid to common shareholders and divided by common shares outstanding are equals to dividends per share. Dividend per share (DPS) is the sum of declared dividends issued by a company for every ordinary share outstanding. The figure is calculated by dividing the total dividends paid out by a business, including interim dividends, over a period of time by the number of outstanding ordinary shares issued.
72
Future value of interest if it is calculated two times a year can be a classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Future value of interest if it is calculated two times a year can be a classified as semi-annual compounding. A semiannual event happens twice a year, typically every six months.
73
Payment if it is divided with interest rate will be formula of
Discuss
Answer & Solution
Answer: Option B
Solution:
Payment if it is divided with interest rate will be formula of present value of perpetuity. A perpetuity is a type of annuity that receives an infinite amount of periodic payments. An annuity is a financial instrument that pays consistent periodic payments. As with any annuity, the perpetuity value formula sums the present value of future cash flows.
74
An earning before interest, taxes, depreciation and amortization are calculated by
Discuss
Answer & Solution
Answer: Option A
Solution:
An earning before interest, taxes, depreciation and amortization are calculated by subtracting operating cost from net sales. Earnings before interest and taxes is a measure of a firm's profit that includes all incomes and expenses except interest expenses and income tax expenses.
75
Until word of preferred is used, an equity in balance sheet is treated as
Discuss
Answer & Solution
Answer: Option A
Solution:
Until word of preferred is used, an equity in balance sheet is treated as common equity. Common equity is the amount that all common shareholders have invested in a company. Most importantly, this includes the value of the common shares themselves.
76
Future value of annuity FVA(due) is, if deposited value is Rs 100 and earn 5% every year of total three years will be
Discuss
Answer & Solution
Answer: Option D
No explanation is given for this question. Let's Discuss on Board
77
Total common equity Rs 996,000,000 and shares outstanding 50,000,000 then book value per share would be
Discuss
Answer & Solution
Answer: Option C
Solution:
Book Value per Share = Total common equity / Outstanding shares
= 996000000 / 50000000 = Rs. 19.92
78
Total amount of depreciation charged on long term assets is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Total amount of depreciation charged on long term assets is classified as accumulated depreciation. Accumulated depreciation is the total amount of a plant asset's cost that has been allocated to depreciation expense (or to manufacturing overhead) since the asset was put into service.
79
rate which is divided by compounding periods to calculate periodic rate must be
Discuss
Answer & Solution
Answer: Option C
Solution:
Rate which is divided by compounding periods to calculate periodic rate must be nominal rate. Nominal interest rate refers to the interest rate before taking inflation into account. Nominal can also refer to the advertised or stated interest rate on a loan, without taking into account any fees or compounding of interest.
80
In calculation of time, value of money, ''N ''represents
Discuss
Answer & Solution
Answer: Option A
Solution:
In calculation of time, value of money, ''N ''represents number of payment periods.