Financial Management Set 24
On This Page
This set of Financial Management Multiple Choice Questions & Answers (MCQs) focuses on Financial Management Set 24
Q1 | Face value per debenture less issue expenses equal to ---------------
- Net proceeds per debentures
- Cost of capital
- Loss
- Profit
Q2 | Capital budgeting means ----------------------------
- Planning for capital asset
- Planning for sales
- Planning for cash
- Planning for profit
Q3 | Capital budgeting is the process of making investment decisions in the ----------
- Sales
- Sales planning
- Cash
- Capital expenditure
Q4 | Capital budgeting is --------------
- Actually the process of making investment decision in capital expenditure
- A cost
- A sales
- A profit
Q5 | Capital budgeting is known as -----------------
- Cost of sales
- Capital expenditure
- Cost of product
- Profit
Q6 | Capital budgeting is ------------------------
- Related to long time
- Related to short time
- A profit
- A sales
Q7 | Capital budgeting actually the process of making investment decisions in -----------
- Production process and style
- Sales planning
- Fixed asset
- Current asset
Q8 | Capital budgeting is also known as --------------------
- Investment decision making
- Capital expenditure decisions
- Planning capital expenditure
- All of these
Q9 | “Capital budgeting is long term planning for making and financing proposed capital outlays”. Who said?
- Charles T. Horngreen
- Philippatos
- J Betty
- Lynch
Q10 | Capital budgeting investment decision involves -----------------------
- Long term function
- Long term asset
- Capital expenditure
- All of these
Q11 | Which is the element of capital budgeting decision
- Long term effect
- Long term investment
- Capital expenditure
- Large investment
Q12 | Capital budgeting process involves --------------------
- Final approval
- Performance review
- Establishing priorities
- All of these
Q13 | Which is the step of capital budgeting process?
- Project generation
- Project evaluation
- Project selection
- Project execution
Q14 | Which is the traditional method of capital budgeting
- Payback period
- Pay out method
- Accounting method
- All of these
Q15 | Which is the time adjusting method of capital budgeting
- NPV method
- IRR method
- Profitability Index Method
- All of these
Q16 | If the annual cash inflows are constant, the payback period can be computed by dividing cash outlay by ----------------
- Annual cash inflow
- Profit
- Expenses
- Annual sales flows
Q17 | If a project requires Rs.20,000 as initial investment and it will generate an annual inflow of Rs.2,000 for the 20 years, the pay back period will be ------------------
- 10 years
- 20 years
- 9 years
- 2 years
Q18 | Projects which yields the highest earnings are ------------------
- Selected
- Rejected
- Budgeted
- All of these
Q19 | The present value of total cash inflows should be compared with present value of ----------------------
- Cash inflows
- Cash outflows
- Investment
- Income
Q20 | The proposal is accepted if the profitability index is more than -----
- One by zero
- Three
- Five
- Ten
Q21 | The proposal is rejected in case the profitability index is ------------
- Less than one
- Less than zero
- Less than two
- Less than five
Q22 | The present value of all inflows are cumulated in -------------------
- Order of sales by order of cash
- Order of time
- Order of investment
- All of these
Q23 | The performance report supplement with date on non-financial performance measures includes ------------------
- Market performance measures
- Quality measures
- Delivery measures
- All of these
Q24 | The investment of long term funds is made after a careful assessment of the various projects through -------------------
- Cost of capital
- Fund flow
- Capital budgeting by sales
- Marketing planning
Q25 | Which is the objective of a firm’s finance management?
- The maximization of firm’s profit
- The maximization of firm’s value
- The maximization of firm’s wealth
- All of these