Financial Management Set 12
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This set of Financial Management Multiple Choice Questions & Answers (MCQs) focuses on Financial Management Set 12
Q1 | Which of the following is not a standard method of inventory valuation?
- First in First out
- Standard Cost
- Average Pricing
- Realizable Value
Q2 | System of procuring goods when required, is known as,
- Free on Board (FOB) (b)always Butter Control
- ,
- Jest in Time (JIT)
- Economic Order Quantity.
Q3 | A firm has inventory turnover of 6 and cost of goods sold is 7,50,000. With betterinventory management, the inventory turnover is increased to 10. This would result in:
- Increase in inventory by 50,000,
- Decrease in inventory by . 50,000,
- Decrease in cost of goods sold,
- Increase in cost of goods sold.
Q4 | What is Economic Order Quantity?
- Cost of an Order
- Cost of Stock
- Reorder level
- Optimum order size.
Q5 | The type of collateral (security) used for short-term loan is
- Real estate,
- Plant & Machinery,
- Stock of good
- Equity share capital
Q6 | Which of the following is a liability of a bank?
- Treasury Bills,
- Commercial papers,
- Certificate of Deposits,
- Junk Bonds.
Q7 | Commercial paper is a type of
- Fixed coupon Bond
- Unsecured short-term debt
- Equity share capital,
- Government Bond
Q8 | Which of the following is not a spontaneous source of short-term funds ?
- Trade credit,
- Accrued expenses,
- Provision for dividend,
- All of the above.
Q9 | Concept of Maximum Permissible Bank finance was introduced by
- Kannan Committee
- Chore Committee,
- Nayak Committee,
- Tandon Committee.
Q10 | In India, Commercial Papers are issued as per the guidelines issued by
- Securities and Exchange Board of India,
- Reserve Bank of India,
- Forward Market Commission,
- None of the above.
Q11 | Commercial paper are generally issued at a pries
- Equal to face value,
- More than face value,
- Less than face value,
- Equal to redemption value
Q12 | Which of the following is not applicable to commercial paper
- Face Value
- Issue Price
- Coupon Rate
- None of the above.
Q13 | The basic objective of Tandon Committee recommendations is that the dependence ofindustry on bank should gradually
- Increase,
- Remain Stable
- Decrease
- None of the above
Q14 | Cash discount terms offered by trade creditors never be accepted because
- Benefit in very small
- Cost is very high
- No sense to pay earlier
- None of the above.
Q15 | In lease system, interest is calculated on
- Cash down payment
- Cash price outstanding
- Hire purchase price
- None of the above
Q16 | A short-term lease which is often cancellable is known as
- Finance Lease
- Net Lease,
- Operating Lease
- Leverage Lease
Q17 | Which of the following is not a usual type of lease arrangement?
- Sale & leaseback,
- Goods on Approval,
- Leverage Lease,
- Direct Lease
Q18 | Under income-tax provisions, depreciation on lease asset is allowed to
- Lessor
- Lessee
- Any of the two
- None of the two
Q19 | Under the provisions of AS-19 'Leases', a leased asset is shown is the balance sheet of
- Manufacturer
- Lessor
- Lessee
- Financing bank
Q20 | A lease which is generally not cancellable and covers full economic life of the asset isknown as
- Sale and leaseback,
- Operating Lease
- Finance Lease,
- Economic Lease
Q21 | Lease which includes a third party (a lender) is known as
- Sale and leaseback
- Direct Lease,
- Inverse Lease,
- Leveraged Lease
Q22 | One difference between Operating and Financial lease is:
- There is often an option to buy in operating lease
- There is often a call option in financial lease.
- An operating lease is generally cancelable by lease
- A financial lease in generally cancelable by lease.
Q23 | From the point of view of the lessee, a lease is a:
- Working capital decision,
- Financing decision,
- Buy or make decision,
- Investment decision
Q24 | For a lesser, a lease is a
- Investment decision,
- Financing decision,
- Dividend decision
- None of the above.
Q25 | Which of the following is not true for a "Lease decision for the lessee?
- Helps in project selection
- Helps in project financing
- Helps in project location
- All of the above.