Financial Management MCQ Questions and Solutions with Explanations | Commerce

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Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13

11.
Which of the following is not a motive to hold cash?

A. Transactionary Motive

B. Precautionary Motive

C. Capital Investment

D. None of the above

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12.
If a company sells its receivable to another party to raise funds, it is known as:

A. Securitization

B. Factoring

C. Pledging

D. None of the above

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13.
The Transaction Motive for holding cash is for:

A. Safety Cushion

B. Daily Operations

C. Purchase of Assets

D. Payment of Dividends

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14.
The term capital structure denotes:

A. Total of Liability side of Balance Sheet

B. Equity Funds, Preference Capital and Long-term Debt

C. Total Shareholders Equity

D. Types of Capital issued by a Company

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15.
Dividend declared by a company must be paid in:

A. 20 days

B. 30 days

C. 32 days

D. 42 days

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16.
Financial planning starts with the preparation of:

A. Master Budget

B. Cash Budget

C. Balance Sheet

D. None of the above

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17.
In order to calculate the proportion of equity financing used by the company, the following should be used:

A. Authorised Share Capital

B. Equity Share Capital plus Reserves and Surplus

C. Equity Share Capital plus Preference Share Capital

D. Equity Share Capital plus Long-term Debt

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18.
Miller-Orr Model deals with

A. Optimum Cash Balance

B. Optimum Finished Goods

C. Optimum Receivables

D. All of the above

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19.
Which of the following is studied with the help of financial leverage?

A. Marketing Risk

B. Interest Rate Risk

C. Foreign Exchange Risk

D. Financing Risk

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20.
Which of the following is incorrect for NOI?

A. k₀ is constant

B. k_d is constant

C. k_e is constant

D. k_d & k₀ are constant

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Financial Management MCQ Questions and Solutions with Explanations | Commerce

11. Which of the following is not a motive to hold cash?

Answer & Solution

12. If a company sells its receivable to another party to raise funds, it is known as:

Answer & Solution

13. The Transaction Motive for holding cash is for:

Answer & Solution

14. The term capital structure denotes:

Answer & Solution

15. Dividend declared by a company must be paid in:

Answer & Solution

16. Financial planning starts with the preparation of:

Answer & Solution

17. In order to calculate the proportion of equity financing used by the company, the following should be used:

Answer & Solution

18. Miller-Orr Model deals with

Answer & Solution

19. Which of the following is studied with the help of financial leverage?

Answer & Solution

20. Which of the following is incorrect for NOI?

Answer & Solution

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11.
Which of the following is not a motive to hold cash?

12.
If a company sells its receivable to another party to raise funds, it is known as:

13.
The Transaction Motive for holding cash is for:

14.
The term capital structure denotes:

15.
Dividend declared by a company must be paid in:

16.
Financial planning starts with the preparation of:

17.
In order to calculate the proportion of equity financing used by the company, the following should be used:

18.
Miller-Orr Model deals with

19.
Which of the following is studied with the help of financial leverage?

20.
Which of the following is incorrect for NOI?