Financial Management MCQ Questions and Solutions with Explanations | Commerce

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51.
Money Discount Rate if equal to:

A. (1 + Inflation Rate) (1 + Real Rate) - 1

B. (1 + Inflation Rate) 4 - (1 + Real Rate) - 1

C. (1 + Real Rate) 4 - (1 + Inflation Rate) - 1

D. (1 + Real Rate) + (1 + Inflation Rate) - 1

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52.
A Sound Capital Budgeting technique is based on:

A. Cash Flows

B. Accounting Profit

C. Interest Rate on Borrowings

D. Last Dividend Paid

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53.
Which of the following is a measure of Debt Service capacity of a firm?

A. Current Ratio

B. Acid Test Ratio

C. Interest Coverage Ratio

D. Debtors Turnover

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54.
Which of the following is not used in Capital Budgeting?

A. Time Value of Money

B. Sensitivity Analysis

C. Net Assets Method

D. Cash Flows

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55.
Receivables Management deals with:

A. Receipts of raw materials

B. Debtors collection

C. Creditors management

D. Inventory management

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56.
Which of the following is not included in cost of inventory?

A. Purchase Cost

B. Transport in Cost

C. Import Duty

D. Selling Costs

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57.
Which of the following is true for a company which uses continuous review inventory system?

A. Order Interval is fixed

B. Order Interval varies

C. Order Quantity is fixed

D. Both A and C

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58.
Operating leverage arises because of:

A. Fixed Cost of Production

B. Fixed Interest Cost

C. Variable Cost

D. None of the above

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59.
Operating leverage works when:

A. Sales increases

B. Sales decreases

C. Both A and B

D. None of A and B

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60.
Which is the most expensive source of funds?

A. New Equity Shares

B. New Preference Shares

C. New Debts

D. Retained Earnings

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Financial Management MCQ Questions and Solutions with Explanations | Commerce

51. Money Discount Rate if equal to:

Answer & Solution

52. A Sound Capital Budgeting technique is based on:

Answer & Solution

53. Which of the following is a measure of Debt Service capacity of a firm?

Answer & Solution

54. Which of the following is not used in Capital Budgeting?

Answer & Solution

55. Receivables Management deals with:

Answer & Solution

56. Which of the following is not included in cost of inventory?

Answer & Solution

57. Which of the following is true for a company which uses continuous review inventory system?

Answer & Solution

58. Operating leverage arises because of:

Answer & Solution

59. Operating leverage works when:

Answer & Solution

60. Which is the most expensive source of funds?

Answer & Solution

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51.
Money Discount Rate if equal to:

52.
A Sound Capital Budgeting technique is based on:

53.
Which of the following is a measure of Debt Service capacity of a firm?

54.
Which of the following is not used in Capital Budgeting?

55.
Receivables Management deals with:

56.
Which of the following is not included in cost of inventory?

57.
Which of the following is true for a company which uses continuous review inventory system?

58.
Operating leverage arises because of:

59.
Operating leverage works when:

60.
Which is the most expensive source of funds?