MBA/MBA Financial Management MCQ Set 8 Sample Test,Sample questions

Question:
A proposal is not a Capital Budgeting proposal if it:

1.is related to Fixed Assets

2.brings long-term benefits

3.brings short-term benefits only

4.has very large investment


Question:
A sound Capital Budgeting technique is based on:

1.Cash Flows

2.Accounting Profit

3.Interest Rate on Borrowings

4.Last Dividend Paid


Question:
At Indifference level of EBIT, different capital have

1.Same EBIT

2.Same EPS

3.Same PAT

4.Same PBT


Question:
Capital Budgeting deals with:

1.Long-term Decisions

2.Short-term Decisions

3.Both (a) and (b)

4.Neither (a) nor (b)


Question:
Capital Budgeting Decisions are based on:

1.Incremental Profit

2.Incremental Cash Flows

3.Incremental Assets

4.Incremental Capital


Question:
Cost of Capital for Bonds and Debentures is calculated on:

1.Before Tax basis

2.After Tax basis

3.Risk-free Rate of Interest basis

4.None of the above


Question:
Difference between between the bank balance as per Cash Book and Pass Book may be due to:

1.Overdraft

2.Float

3.Factoring

4.None of the above


Question:
Dividend Payout Ratio is:

1.PAT Capital

2.DPS ÷ EPS

3.Pref. Dividend ÷ PAT

4.Pref. Dividend ÷ Equity Dividend


Question:
Evaluation of Capital Budgeting Proposals is based on Cash Flows because:

1.Cash Flows are easy to calculate

2.Cash Flows are suggested by SEBI

3.Cash is more important than profit

4.None of the above


Question:
Feasibility Set Approach to Capital Rationing can be applied in:

1.Accept-Reject Situations

2.Divisible Projects

3.Mutually Exclusive Projects

4.None of the above


Question:
Financial decision involve;

1.Investment, financing and dividend decision

2.Investment, financing and sales decision

3.Financing, dividend and cash decision

4.None of these


Question:
For a lesser, a lease is a

1.Investment decision

2.Financing decision

3.Dividend decision

4.None of the above


Question:
Higher FL is related the use of:

1.Higher Equity

2.Higher Debt

3.Lower Debt

4.None of the above


Question:
If a firm has ke > r the Walter's Model suggests for

1.0% payout

2.100% Payout

3.50% Payout

4.25% Payout


Question:
If no information is available, the General Rule for valuation of stock for balance sheet is

1.Replacement Cost

2.Realizable Value

3.Historical Cost

4.Standard Cost


Question:
If the Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is:

1.7%

2.5%

3.5.70%

4.6.25%


Question:
If the sales of the firm are. 60,00,000 and the average debtors are. 15,00,000 then the receivables turnover is

1.4 times

2.25%

3.400%

4.0.25 times


Question:
In Current Ratio, Current Assets are compared with:

1.Current Profit

2.Current Liabilities

3.Fixed Assets

4.Equity Share Capital


Question:
In India, Commercial Papers are issued as per the guidelines issued by

1.Securities and Exchange Board of India

2.Reserve Bank of India

3.Forward Market Commission

4.None of the above


Question:
In MM-Model, irrelevance of capital structure is based on:

1.Cost of Debt and Equity

2.Arbitrage Process

3.Decreasing k0

4.All of the above


Question:
In order to calculate Weighted Average Cost of weights may be based on:

1.Market Values

2.Target Values

3.Book Values

4.All of the above


Question:
In order to find out cost of equity capital under CAPM, which of the following is not required:

1.Beta Factor

2.Market Rate of Return

3.Market Price of Equity Share

4.Risk-free Rate of Interest


Question:
Inventory is generally valued as lower of

1.Market Price and Replacement Cost

2.Cost and Net Realizable Value

3.Cost and Sales Value

4.Sales Value and Profit


Question:
MM Model of Dividend irrelevance uses arbitrage between

1.Dividend and Bonus

2.Dividend and Capital Issue

3.Profit and Investment

4.None of the above


Question:
NPV of a proposal, as calculated by RADR real CE Approach will be:

1.Same

2.Unequal

3.Both (a) and

4.(d) None of (a) and (b)


Question:
Operating Leverage is calculated as:

1.Contribution ÷ EBIT

2.EBIT÷PBT

3.EBIT ÷Interest

4.EBIT ÷Tax


Question:
Process of Financial Planning ends with:

1.Preparation of Projected Statements

2.Preparation of Actual Statements

3.Comparison of Actual with Projected

4.Ordering the employees that projected figures m come true


Question:
Profitability Index, when applied to Divisible Projects, impliedly assumes that:

1.Project cannot be taken in parts

2.NPV is linearly proportionate to part of the project taken up

3.NPV is additive in nature

4.Both (b) and (c)


Question:
Ratio of Net Income to Number of Equity Shares known as:

1.Price Earnings Ratio

2.Net Profit Ratio

3.Earnings per Share

4.Dividend per Share


Question:
Relationship between change in sales and change m is measured by:

1.Financial leverage

2.Combined leverage

3.Operating leverage

4.None of the above


Question:
Risk in Capital budgeting implies that the decision-maker knows ________________ of the cash flows.

1.Variability

2.Probability

3.Certainty

4.None of the above


Question:
Risk in Capital budgeting is same as:

1.Uncertainty of Cash flows

2.Probability of Cash flows

3.Certainty of Cash flows

4.Variability of Cash flows


Question:
Risk-Return trade off implies

1.Minimization of Risk

2.Maximization of Risk

3.Ignorance of Risk

4.Optimization of Risk


Question:
Shares of face value of 10 are 80% paid up. The company declares a dividend of 50%. Amount of dividend per share is

1.5

2.4

3.80

4.50


Question:
The basic objective of Tandon Committee recommendations is that the dependence of'industry on bank should gradually

1.Increase

2.Remain Stable

3.Decrease

4.None of the above


Question:
The Real Cashflows must be discounted to get the present value at a rate equal to:

1.Money Discount Rate

2.Inflation Rate

3.Real Discount Rate

4.Risk free rate of interest


Question:
The Traditional Approach to Value of the firm m that:

1.There is no optimal capital structure

2.Value can be increased by judicious use of leverage

3.Cost of Capital and Capital structure are m dent

4.Risk of the firm is independent of capital structure


Question:
The type of collateral (security) used for short-term loan is

1.Real estate

2.Plant & Machinery

3.Stock of good

4.Equity share capital


Question:
Under the provisions of AS-19 'Leases', a leased asset is shown is the balance sheet of

1.Manufacturer

2.Lessor

3.Lessee

4.Financing bank


Question:
Which element of the basic NPV equation is adjusted by the RADR?

1.Denominator

2.Numerator

3.Both

4.None


Question:
Which is not a service of a factor?

1.Administrating Sales Ledger

2.Advancing against Credit Sales

3.Assuming bad debt losses

4.None of the above


Question:
Which of the following has the highest cost of capital?

1.Equity shares

2.Loans

3.Bonds

4.Preference shares


Question:
Which of the following is not a generally accepted approach for Calculation of Cost of Equity?

1.CAPM

2.Dividend Discount Model

3.Rate of Pref. Dividend Plus Risk

4.Price-Earnings Ratio


Question:
Which of the following is not a type of dividend payment?

1.Bonus Issue

2.Right Issue

3.Share Split

4.Both (B) and (C)


Question:
Which of the following is not a usual type of lease arrangement?

1.Sale & leaseback

2.Goods on Approval

3.Leverage Lease

4.Direct Lease


Question:
Which of the following is not applicable to commercial paper

1.Face Value

2.Issue Price

3.Coupon Rate

4.None of the above


Question:
Which of the following is not followed in capital budgeting?

1.Cash flows Principle

2.Interest Exclusion Principle

3.Accrual Principle

4.Post-tax Principle


Question:
Which of the following is not true of cash budget ?

1.Cash budget indicates timings of short-term borrowing

2.Cash budget is based on accrual concept

3.Cash budget is based on cash flow concept

4.Repayment of principal amount of law is shown in cash budget


Question:
Which of the following is true for Net Income Approach?

1.Higher Equity is better

2.Higher Debt is better

3.Debt Ratio is irrelevant

4.None of the above


Question:
Which of the following statements is correct?

1.A Higher Receivable Turnover is not desirable

2.Interest Coverage Ratio depends upon Tax Rate

3.Increase in Net Profit Ratio means increase in Sales

4.Lower Debt-Equity Ratio means lower Financial Risk


More MCQS

  1. MBA Accounting MCQ Question Set 1
  2. MBA Accounting MCQ Question Set 2
  3. MBA Accounting MCQ Question Set 3
  4. MBA Accounting MCQ Question Set 4
  5. MBA Accounting MCQ Question Set 5
  6. MBA Accounting MCQ Question Set 6
  7. MBA Accounting MCQ Question Set 7
  8. MBA Accounting MCQ Question Set 8
  9. MBA Accounting MCQ Question Set 9
  10. MBA Accounting MCQ Question Set 10
  11. MBA Advertising and Sales Promotion Mcq Set 1
  12. MBA Advertising and Sales Promotion Mcq Set 2
  13. MBA Advertising and Sales Promotion Mcq Set 3
  14. MBA Advertising and Sales Promotion Mcq Set 4
  15. MBA Advertising and Sales Promotion Mcq Set 5
  16. MBA Advertising and Sales Promotion Mcq Set 6
  17. MBA Advertising and Sales Promotion Mcq Set 7
  18. MBA Advertising and Sales Promotion Mcq Set 8
  19. MBA Advertising and Sales Promotion Mcq Set 9
  20. MBA Advertising and Sales Promotion Mcq Set 10
  21. MBA Advertising and Sales Promotion Mcq Set 11
  22. MBA Advertising and Sales Promotion Mcq Set 12
  23. MBA Advertising and Sales Promotion Mcq Set 13
  24. MBA Behavioural and Allied Sciences MCQ Set 1
  25. MBA Behavioural and Allied Sciences MCQ Set 2
  26. MBA Behavioural and Allied Sciences MCQ Set 3
  27. MBA Behavioural and Allied Sciences MCQ Set 4
  28. MBA Behavioural and Allied Sciences MCQ Set 5
  29. MBA Behavioural and Allied Sciences MCQ Set 6
  30. MBA Behavioural and Allied Sciences MCQ Set 7
  31. MBA Behavioural and Allied Sciences MCQ Set 8
  32. MBA Behavioural and Allied Sciences MCQ Set 9
  33. MBA Behavioural and Allied Sciences MCQ Set 10
  34. MBA Brand Management MCQ Set 1
  35. MBA Brand Management MCQ Set 2
  36. MBA Brand Management MCQ Set 3
  37. MBA Brand Management MCQ Set 4
  38. MBA Brand Management MCQ Set 5
  39. MBA Business Communication MCQ Set 1
  40. MBA Business Communication MCQ Set 2
  41. MBA Business Communication MCQ Set 3
  42. MBA Business Communication MCQ Set 4
  43. MBA Business Communication MCQ Set 5
  44. MBA Business Communication MCQ Set 6
  45. MBA Business Communication MCQ Set 7
  46. MBA Business Communication MCQ Set 8
  47. MBA Business Communication MCQ Set 9
  48. MBA Brand Management MCQ Set 10
  49. MBA Brand Management MCQ Set 11
  50. MBA Business Economics MCQ Set 1
  51. MBA Business Economics MCQ Set 2
  52. MBA Business Economics MCQ Set 3
  53. MBA Business Economics MCQ Set 4
  54. MBA Business Economics MCQ Set 5
  55. MBA Business Economics MCQ Set 6
  56. MBA Business Environment MCQ Set 1
  57. MBA Business Environment MCQ Set 2
  58. MBA Business Environment MCQ Set 3
  59. MBA Business Environment MCQ Set 4
  60. MBA Business Environment MCQ Set 5
  61. MBA Business Environment MCQ Set 6
  62. MBA Business Environment MCQ Set 7
  63. MBA Business Environment MCQ Set 8
  64. MBA Business Environment MCQ Set 9
  65. MBA Business Ethics and Governance MCQ Set 1
  66. MBA Business Law Mcq Set 1
  67. MBA Business Law Mcq Set 2
  68. MBA Business Law Mcq Set 3
  69. MBA Business Law Mcq Set 4
  70. MBA Business Law Mcq Set 5
  71. MBA Business Law Mcq Set 6
  72. MBA Business Law Mcq Set 7
  73. MBA Business Law Mcq Set 8
  74. MBA Business Law Mcq Set 9
  75. MBA Business Mathematics Mcq Set 1
  76. MBA Business Mathematics Mcq Set 2
  77. MBA Business Mathematics Mcq Set 3
  78. MBA Business Mathematics Mcq Set 4
  79. MBA Business Mathematics Mcq Set 5
  80. MBA Business Mathematics Mcq Set 6
  81. MBA Business Statistics Mcq Set 1
  82. MBA Business Statistics Mcq Set 2
  83. MBA Computers In Management Mcq Set 1
  84. MBA Computers In Management Mcq Set 2
  85. MBA Computers In Management Mcq Set 3
  86. MBA Computers In Management Mcq Set 4
  87. MAB Cost and Managerial Accounting Mcq Set 1
  88. MBA Cost and Managerial Accounting Mcq Set 1
  89. MBA Cost and Managerial Accounting Mcq Set 2
  90. MBA Cost and Managerial Accounting Mcq Set 3
  91. MBA Cost and Managerial Accounting Mcq Set 4
  92. MBA Cost and Managerial Accounting Mcq Set 5
  93. MBA Cost and Managerial Accounting Mcq Set 6
  94. MBA Cost and Managerial Accounting Mcq Set 7
  95. MBA Cost and Managerial Accounting Mcq Set 8
  96. MBA Cost and Managerial Accounting Mcq Set 9
  97. MBA Cost and Managerial Accounting Mcq Set 10
  98. MBA Cost and Managerial Accounting Mcq Set 11
  99. MBA E-Business MCQ Set 1
  100. MBA E-Business MCQ Set 2
  101. MBA E-Business MCQ Set 3
  102. MBA E-Business MCQ Set 4
  103. MBA English Language MCQ Set 1
  104. MBA English Language MCQ Set 2
  105. MBA Entrepreneurship Management MCQ Set 1
  106. MBA Entrepreneurship Management MCQ Set 2
  107. MBA Entrepreneurship Management MCQ Set 3
  108. MBA Entrepreneurship Management MCQ Set 4
  109. MBA Entrepreneurship Management MCQ Set 5
  110. MBA Entrepreneurship Management MCQ Set 6
  111. MBA Financial Management MCQ Set 1
  112. MBA Financial Management MCQ Set 2
  113. MBA Financial Management MCQ Set 3
  114. MBA Financial Management MCQ Set 4
  115. MBA Financial Management MCQ Set 5
  116. MBA Financial Management MCQ Set 6
  117. MBA Financial Management MCQ Set 7
  118. MBA Financial Management MCQ Set 8
  119. MBA Financial Management MCQ Set 9
  120. MBA Financial Management MCQ Set 10
  121. MBA Financial Management MCQ Set 11
  122. MBA Financial Management MCQ Set 12
  123. MBA Human Resource Management Mcq Set 1
  124. MBA Human Resource Management Mcq Set 2
  125. MBA Human Resource Management Mcq Set 3
  126. MBA Human Resource Management Mcq Set 4
  127. MBA Human Resource Management Mcq Set 5
  128. MBA Human Resource Management Mcq Set 6
  129. MBA Human Resource Management Mcq Set 7
  130. MBA Human Resource Management Mcq Set 8
  131. MBA Insurance and Risk Management Mcq Set 1
  132. MBA Insurance and Risk Management Mcq Set 2
  133. MBA Insurance and Risk Management Mcq Set 3
  134. MBA Insurance and Risk Management Mcq Set 4
  135. MBA Insurance and Risk Management Mcq Set 5
  136. MBA Insurance and Risk Management Mcq Set 6
  137. MBA Management Information Systems Mcq Set 1
  138. MBA Management Information Systems Mcq Set 2
  139. MBA Management Information Systems Mcq Set 3
  140. MBA Management Information Systems Mcq Set 4
  141. MBA Management Information Systems Mcq Set 5
  142. MBA Management Information Systems Mcq Set 6
  143. MBA Management Information Systems Mcq Set 7
  144. MBA Management Information Systems Mcq Set 8
  145. MBA Management Information Systems Mcq Set 9
  146. MBA Marketing Management Mcq Set 1
  147. MBA Marketing Management Mcq Set 2
  148. MBA Marketing Management Mcq Set 3
  149. MBA Marketing Management Mcq Set 4
  150. MBA Marketing Management Mcq Set 5
  151. MBA Marketing Management Mcq Set 6
  152. MBA Marketing Management Mcq Set 7
  153. MBA Marketing Management Mcq Set 8
  154. MBA Marketing Management Mcq Set 9
  155. MBA Marketing Management Mcq Set 10
  156. MBA Marketing Management Mcq Set 11
  157. MBA Marketing Management Mcq Set 12
  158. MBA Marketing Management Mcq Set 13
  159. MBA Media Planning Mcq Set 1
  160. MBA Media Planning Mcq Set 2
  161. MBA Media Planning Mcq Set 3
  162. MBA Media Planning Mcq Set 4
  163. MBA Operations Research Mcq Set 1
  164. MBA Operations Research Mcq Set 2
  165. MBA Operations Research Mcq Set 3
  166. MBA Operations Research Mcq Set 4
  167. MBA Operations Research Mcq Set 5
  168. MBA Organisational Behavior Mcq Set 1
  169. MBA Organisational Behavior Mcq Set 2
  170. MBA Organisational Behavior Mcq Set 3
  171. MBA Organisational Behavior Mcq Set 4
  172. MBA Principles and Practices of Management Mcq Set 1
  173. MBA Principles and Practices of Management Mcq Set 2
  174. MBA Principles and Practices of Management Mcq Set 3
  175. MBA Principles and Practices of Management Mcq Set 4
  176. MBA Principles and Practices of Management Mcq Set 5
  177. MBA Principles and Practices of Management Mcq Set 6
  178. MBA Principles and Practices of Management Mcq Set 7
  179. MBA Principles and Practices of Management Mcq Set 8
  180. MBA Principles and Practices of Management Mcq Set 9
  181. MBA Production and Operations Management Mcq Set 1
  182. MBA Production and Operations Management Mcq Set 2
  183. MBA Production and Operations Management Mcq Set 3
  184. MBA Production and Operations Management Mcq Set 4
  185. MBA Production and Operations Management Mcq Set 5
  186. MBA Production and Operations Management Mcq Set 6
  187. MBA Production and Operations Management Mcq Set 7
  188. MBA Production and Operations Management Mcq Set 8
  189. MBA Production and Operations Management Mcq Set 9
  190. MBA Production and Operations Management Mcq Set 10
  191. MBA System Analysis and Design Mcq Set 1
  192. MBA System Analysis and Design Mcq Set 2
  193. MBA System Analysis and Design Mcq Set 3
  194. MBA System Analysis and Design Mcq Set 4
  195. MBA System Analysis and Design Mcq Set 5
  196. MBA System Analysis and Design Mcq Set 6
  197. MBA System Analysis and Design Mcq Set 7
  198. MBA System Analysis and Design Mcq Set 8
  199. MBA System Analysis and Design Mcq Set 9
  200. MBA Total Quality Management Mcq Set 1
  201. MBA Total Quality Management Mcq Set 2
  202. MBA Total Quality Management Mcq Set 3
  203. MBA Total Quality Management Mcq Set 4
  204. MBA Total Quality Management Mcq Set 5
  205. MBA Total Quality Management Mcq Set 6
  206. MBA Total Quality Management Mcq Set 7
  207. MBA Total Quality Management Mcq Set 8
Search
R4R Team
R4Rin Top Tutorials are Core Java,Hibernate ,Spring,Sturts.The content on R4R.in website is done by expert team not only with the help of books but along with the strong professional knowledge in all context like coding,designing, marketing,etc!