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This set of Financial Management Multiple Choice Questions & Answers (MCQs) focuses on Financial Management Set 22

Q1 | Which is the limitation of traditional approach of financial management
  • Ignores allocation of resources
  • One sided approach
  • More emphasis on long term problems
  • All of these
Q2 | The finance function is/are ----------------------
  • Determination of financial requirement of the firm
  • Obtaining necessary finance from the appropriate sources at minimum possible cost
  • The allocation of finance in different assets
  • All of these
Q3 | Financial management is a part of ---------------------
  • Financial accounting
  • Business management
  • Accounting
  • Tax law
Q4 | The financial management is responsible for the
  • Controlling of the Organization
  • Organizing trading programs
  • Recording the transaction
  • Finance function of the firm
Q5 | Financial management includes -------------------
  • Measurement of performance
  • Finance function
  • Financial resources
  • All of these
Q6 | Profit maximization includes ---------------------
  • It is indicator of economic efficiency
  • Source of incentive
  • Maximization of social benefit
  • Measurement of success of business decisions
Q7 | Function of finance officers includes -----------------------
  • Continuous credit
  • Co-ordination in fund
  • Preparation of cost account
  • Adequate liquidity
Q8 | The term value implies the ------------
  • Task of estimating the worth of an asset
  • Task of estimating the worth of a security
  • Task of estimating the value of a business
  • All of these
Q9 | Which is a type of value
  • Book value
  • Retailer or wholesaler value
  • Plant value
  • Domestic value
Q10 | Which is the approach of valuation
  • Asset based approach to valuation
  • Earnings based approach to valuation
  • Market value based approach to valuation
  • All f these
Q11 | Total assets – Total external liabilities equal to ---------------------
  • Net asset
  • Net liabilities
  • Net cost
  • Net depreciation
Q12 | The arrangement of working capital and current assets can be done only by -------------------
  • Short term sources
  • Long term sources
  • Cost of capital
  • Financial plan
Q13 | Which is the source of short term
  • Trade credit
  • Short term bank finance
  • Public deposits
  • All of these
Q14 | Which is the type of trade credit
  • Open account
  • Bills of exchange
  • Promissory note
  • All of these
Q15 | Which is the form of credit
  • Overdraft
  • Cash credit
  • Discounting of trade bills
  • Loans and advances
Q16 | Which is the characteristics of share capital
  • Getting permanent capital
  • Payment of dividend is not compulsory
  • No mortgage of property
  • Limited liability
Q17 | The ownership capital of Joint Stock Companies is dividend in its --------------
  • Equity shares
  • Debentures
  • Bonds
  • Debentures and preference shares
Q18 | The payment of dividend is not compulsory on ------------------
  • Equity share capital and preference share capital
  • Bonds
  • Debentures
  • Share capital
Q19 | The capital raised through equity share is ---------- for the company
  • Floating capital
  • Variable capital
  • Temporary capital
  • Permanent or fixed capital
Q20 | The control and management of the company is in the hands of ----
  • Debenture holders
  • Bondholders
  • Equity shareholders
  • Employees
Q21 | Who have the last right on the company assets
  • Bondholders
  • Equity shareholders
  • Debenture holders
  • Preference shareholders
Q22 | The equity shareholders are owners of ---------------------
  • Residual income of the company
  • Cost of asset
  • Limited liability
  • Cost of capital
Q23 | Which is the advantage of the share capital
  • Permanent capital by sharing risk
  • No fixed burden of dividend by all of these
  • All of these
  • None of these
Q24 | When the expansion of business and income is there, then the market value increases which result in ------------------
  • Capital gain by capital loss
  • Capital expense
  • Reserves
  • None of these
Q25 | If the company announces dividend then it is necessary to pay if
  • Within a certain time
  • Within five years
  • Within six years
  • Within seven years