Financial Management Set 10
On This Page
This set of Financial Management Multiple Choice Questions & Answers (MCQs) focuses on Financial Management Set 10
Q1 | In stock dividend:
- Authorized capital always increases
- Paid up capital always increases
- Face value per share decreases
- Market price for share decreases
Q2 | Which of the following is not considered in Lintner's Model ?
- Dividend payout ratio,
- Current EPS,
- Speed of Adjustment,
- Preceding year EPS
Q3 | Which of the following is not relevant for dividend payment for a year ?
- Cash flow position
- Profit position,
- Paid up capital,
- Retained Earnings
Q4 | Cash Budget does not include
- Dividend Payable
- Postal Expenditure,
- Issue of Capital,
- Total Sales Figure.
Q5 | Which of the following is not a motive to hold cash?
- Transactionary Motive,
- Pre-scautionary Motive,
- Captal Investment,
- None of the above.
Q6 | Cheques deposited in bank may not be available for immediate use due to
- Payment Float
- Recceipt Float
- Net Float,
- Playing the Float.
Q7 | Difference between between the bank balance as per Cash Book and Pass Book maybe due to:
- Overdraft,
- Float,
- Factoring,
- None of the above.
Q8 | Concentration Banking helps in
- Reducing Idle Bank Balance
- Increasing Collection,
- Increasing Creditors,
- Reducing Bank Transactions.
Q9 | The Transaction Motive for holding cash is for
- Safety Cushion
- Daily Operations,
- Purchase of Assets
- Payment of Dividends.
Q10 | Miller-Orr Model deals with
- Optimum Cash Balance,
- Optimum Finished goods,
- Optimum Receivables,
- All of the above.
Q11 | Float management is related to
- Cash Management,
- Inventory Management,
- Receivables Management,
- Raw Materials Management
Q12 | Which of the following is not an objective of cash management ?
- Maximization of cash balance
- Minimization of cash balance
- Optimization of cash balance
- Zero cash balance.
Q13 | Which of the following is not true of cash budget ?
- Cash budget indicates timings of short-term borrowing,
- Cash budget is based on accrual concept
- Cash budget is based on cash flow concept
- Repayment of principal amount of law is shown in cash budget.
Q14 | Baumol's Model of Cash Management attempts to:
- Minimise the holding cost,
- Minimization of transaction cost,
- Minimization of total cost,
- Minimization of cash balance
Q15 | Which of the following is not considered by Miller-Orr Model?
- Variability in cash requirement
- Cost of transaction,
- Holding cost,
- Total annual requirement of cash.
Q16 | Marketable securities are primarily
- Equity shares,'
- Preference shares,
- Fixed deposits with companies
- Short-term debt investments.
Q17 | 5Cs of the credit does not include
- Collateral
- Character,
- Conditions,
- None of the above
Q18 | Which of the following is not an element of credit policy?
- Credit Terms
- Collection Policy
- Cash Discount Terms,
- Sales Price
Q19 | Ageing schedule incorporates the relationship between
- Creditors and Days Outstanding
- Debtors and Days Outstanding
- Average Age of Directors,
- Average Age of All Employees.
Q20 | Bad debt cost is not borne by factor in case of
- Pure Factoring
- Without Recourse Factoring,
- With Recourse Factoring
- None of the above
Q21 | Which of the following is not a technique of receivables Management?
- Funds Flow Analysis
- Ageing Schedule,
- Days sales outstanding
- Collection Matrix.
Q22 | Which of the following is not a part of credit policy?
- Collection Effort
- Cash Discount,
- Credit Standard
- Paying Practices of debtors.
Q23 | Which is not a service of a factor?
- Administrating Sales Ledger
- Advancing against Credit Sales,
- Assuming bad debt losses,
- None of the above.
Q24 | Credit Policy of a firm should involve a trade-off between increased
- Sales and Increased Profit
- Profit and Increased Costs of Receivables,
- Sales and Cost of goods sold,
- None of the above.
Q25 | Out of the following, what is not true in respect of factoring?
- Continuous Arrangement between Factor and Seller,
- Sale of Receivables to the factor,
- Factor provides cost free finance to seller
- None of the above.