Financial Management MCQ Questions and Solutions with Explanations | Commerce

A. is related to fixed assets

B. brings long-term benefits

C. brings short-term benefits only

D. has very large investment

A. Pure Factoring

B. Without Recourse Factoring

C. With Recourse Factoring

D. None of the above

A. Fixed cost of production

B. Variable cost

C. Interest cost

D. None of the above

A. High debt proportion

B. Lower debt proportion

C. Equal debt and equity

D. No debt

A. Material purchase cost

B. Penalty charge for default

C. Interest on loan

D. None of the above

A. Increased

B. Decreased

C. Unchanged

D. None of the above

A. Sale and Leaseback

B. Operating Lease

C. Finance Lease

D. Economic Lease

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

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

A. Administrating Sales Ledger

B. Advancing against Credit Sales

C. Assuming bad Debt losses

D. None of the above