Financial Management MCQ Questions and Solutions with Explanations

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-1 section-13

Which one is true for Net Operating Income Approach?

A) V_D = V_F - V_E B) V_E = V_F + V_D C) V_E = V_F - V_D D) V_D = V_F + V_E

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Answer & Solution

Answer: Option C

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Which of the following helps analysing return to equity Shareholders?

A) Return on Assets B) Earnings per Share C) Net Profit Ratio D) Return on Investment

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Answer & Solution

Answer: Option B

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NOI Approach advocates that the degree of debt financing is:

A) Relevant B) May be relevant C) Irrelevant D) May be irrelevant

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Answer & Solution

Answer: Option C

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In the Traditional Approach, which one of the following remains constant?

A) Cost of Equity B) Cost of Debt C) WACC D) None of the above

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Answer & Solution

Answer: Option D

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In ABC inventory management system, class A items may require:

A) Higher Safety Stock B) Frequent Deliveries C) Periodic Inventory system D) Updating of Inventory records

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Answer & Solution

Answer: Option A

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Two mutually exclusive projects with different economic lives can be compared on the basis of:

A) Internal Rate of Return B) Profitability Index C) Net Present Value D) Equivalent Annuity Value

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Answer & Solution

Answer: Option D

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Which of the following is true?

A) Retained earnings are cost free B) External Equity is cheaper than Internal Equity C) Retained Earnings are cheaper than External Equity D) Retained Earnings are costlier than External Equity

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Answer & Solution

Answer: Option C

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Higher OL is related to the use of higher:

A) Debt B) Equity C) Fixed Cost D) Variable Cost

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Answer & Solution

Answer: Option C

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One difference between Operating and Financial lease is:

A) There is often an option to buy in operating lease B) There is often a call option in financial lease C) An operating lease is generally cancellable by lease D) A financial lease in generally cancellable by lease

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Answer & Solution

Answer: Option C

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System of procuring goods when required, is known as:

A) Free on Board (FOB) B) Always Butter Control (ABC) C) Jest in Time (JIT) D) Economic Order Quantity

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Answer & Solution

Answer: Option C

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