MBA/MBA Financial Management MCQ Set 11 Sample Test,Sample questions

Question:
"Share holder wealth" in a firm is represented by:

1.The number of people employed in the firm

2.The book value of the firm's assets less the book value of its liabilities

3.The amount of salary paid to its employees

4.The market price per share of the firm's common stock


Question:
A company's ______________ is money owned to it by its customers.

1.Liquidity

2.Accounts Receivable

3.Accounts Payable

4.Inventory


Question:
A Current Ratio of Less than One means:

1.Current Liabilities < Current Assets

2.Fixed Assets > Current Assets

3.Current Assets < Current Liabilities

4.Share Capital > Current Assets


Question:
A very high current ratio indicates

1.High efficiency

2.flabby inventory

3.position of more long term funds

4.b or c


Question:
A very high current ratio indicates

1.High efficiency

2.flabby inventory

3.position of more long term funds

4.b or c


Question:
Accounting Ratios are important tools used by

1.Managers

2.Researchers

3.Investors

4.All of the above


Question:
An asset is a

1.Source of fund

2.Use of fund

3.Inflow of funds

4.none of the above


Question:
Authorised capital of a company is Rs.5 lac, 40% of it is paid up. Loss incurred during the year is Rs.50,000. Accumulated loss carried from last year is Rs.2 lac. The company has a Tangible Net Worth of

1.Nil

2.Rs.2.50 lac

3.(-) Rs.50,000

4.Rs.1 lac


Question:
Capital Budgeting is related to

1.Long term assets

2.Short term assets

3.Long term and short term assets

4.Fixed assets


Question:
Current ratio of a concern is 1,its net working capital will be

1.Positive

2.Negative

3.Nil

4.None of the above


Question:
Current ratio of a concern is 1,its net working capital will be

1.Positive

2.Negative

3.Nil

4.None of the above


Question:
Debt to Total Assets of a firm is .2. The Debt to Equity ratio would be:

1.0.80

2.0.25

3.1.00

4.0.75


Question:
Dividend Payout Ratio is:

1.PAT Capital

2.DPS ÷ EPS

3.Pref. Dividend ÷ PAT

4.Pref. Dividend ÷ Equity Dividend


Question:
Excess working capital results in

1.Block of cash

2.Loosing interests

3.Lack of production

4.Lack of smooth flow of production


Question:
Factoring is a form of financing ______________.

1.payable

2.receivables

3.borrowings

4.debts


Question:
Financial Management is mainly concerned with ______________.

1.arrangement of funds

2.all aspects of acquiring and utilizing financial resources for firm's activities

3.efficient Management of every business

4.profit maximization


Question:
Financing activities involve

1.lending money

2.acquiring investments

3.issuing debt

4.acquiring long-lived assets


Question:
If a company issues bonus shares the debt equity ratio will

1.Remain unaffected

2.Will be affected

3.Will improve

4.none of the above


Question:
In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment will appear as.

1.subtraction from net income

2.an addition to net income

3.an addition to cash flow from investing activities

4.a subtraction from cash flow from investing activities


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

1.Current Profit

2.Current Liabilities

3.Fixed Assets

4.Equity Share Capital


Question:
In last year the current ratio was 3:1 and quick ratio was 2:1. Presently current ratio is 3:1 but quick ratio is 1:1.This indicates comparably

1.high liquidity

2.higher stock

3.lower stock

4.low liquidity


Question:
In the Balance sheet of a firm, the debt equity ratio is 2:1. The amount of long term sources is Rs.12 lac. What is the amount of tangible net worth of the firm?

1.Rs.12 lac

2.Rs.8 lac

3.Rs.4 lac

4.Rs.2 lac


Question:
In the Balance sheet of a firm,the debt equity ratio is 2:1.The amount of long term sources is Rs.12 lac.What is the amount of tangible net worth of the firm?

1.Rs.12 lac

2.Rs.8 lac

3.Rs.4 lac

4.Rs.2 lac


Question:
Insufficient working capital results in

1.Block of cash

2.Loosing interests

3.Lack of production

4.Lack of smooth flow of production


Question:
Ordering cost is the cost of ______________ materials.

1.selling

2.purchasing

3.stocking

4.financing


Question:
Quick assets do not include

1.Govt. bond

2.Book debts

3.Advance for supply of raw materials

4.Inventories


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:
Significant noncash transactions would not include

1.conversion of bonds into common stock

2.asset acquisition through bond issuance

3.treasury stock acquisition

4.exchange of plant assets


Question:
The excess of current assets over current liabilities is known as

1.Gross working capital

2.Permanent working capital

3.Temporary working capital

4.Net working capital


Question:
The gross working capital is a ______________ concern concept.

1.Going

2.money measurement

3.revenue concept

4.cost concept


Question:
The investment in total current assets is known as

1.Gross working capital

2.Permanent working capital

3.Temporary working capital

4.Net working capital


Question:
The order of presentation of activities on the statement of cash flows is

1.operating, investing, and financing

2.operating, financing, and investing

3.financing, operating, and investing

4.financing, investing, and operating


Question:
The policy concerning quarters of profit to be distributed as dividend is termed as ______________.

1.Profit policy

2.Dividend policy

3.Credit policy

4.Reserving policy


Question:
The statement of cash flows

1.must be prepared on a daily basis

2.summarizes the operating, financing, and investing activities of an entity

3.is another name for the income statement

4.is a special section of the income statement


Question:
The time period required for the conversion of raw materials into finished goods

1.Operating cycle period

2.Inventory conversion period

3.Receivable conversion period

4.None


Question:
The time period required to convert the credit sales into cash

1.Operating cycle period

2.Inventory conversion period

3.Receivable conversion period

4.None


Question:
Which of the following are microeconomic variables that help define and explain the discipline of finance?

1.risk and return

2.capital structure

3.inflation

4.All of the above


Question:
Which of the following helps analysing return to equity Shareholders?

1.Return on Assets

2.Earnings Per Share

3.Net Profit Ratio

4.Return on Investment


Question:
Which of the following is not a category of ratios?

1.Profitability

2.Management

3.Efficiency

4.Solvency


Question:
Which of the following is not a function performed by a financial system?

1.Savings function

2.Liquidity function

3.Risk function

4.Social function


Question:
Which of the following is not identified as one of the four main financial objectives of a firm?

1.Profitability

2.Liquidity

3.Efficiency

4.Timeliness


Question:
Which of the following ratios would be useful in assessing short-term liquidity?

1.Current ratio, inventory turnover, fixed asset turnover

2.Average collection period, debt ratio, return on assets

3.Current ratio, quick ratio, cash-flow liquidity ratio

4.Quick ratio, accounts receivable turnover, returns on assets


Question:
Which of the following transactions does not affect cash during a period?

1.Write-off of an uncollectible account

2.Collection of an accounts receivable

3.Sale of treasury stock

4.Exercise of the call option on bonds payable


Question:
Which one of the following is capital expenditure:

1.Capital invested by owner

2.Selling expense for machine

3.Machine purchased

4.Daily expense to operate business


Question:
Which one of the following items is not generally used in preparing a statement of cash flows?

1.Adjusted trial balance

2.Comparative balance sheets

3.Current income statement

4.Additional information


Question:
Who of the following make a broader use of accounting information?

1.Accountants

2.Financial Analysts

3.Auditors

4.Marketers


Question:
Why is it important to calculate cash flow ratios?

1.Firms need cash to service debt, dividends and expenses

2.Companies that generate healthy profit may be unable to convert profits into cash

3.Cash flow ratios help the analyst assess the long-term profitability of a firm

4.Both (a) and (b)


Question:
Working capital is also known as ______________ capital.

1.circulating

2.fluctuating

3.fixed

4.going


Question:
Working capital management involves the financing and management of the assets of the firm.

1.Fixed

2.Total

3.Current

4.None of the above


Question:
______________ depict relationships between items on a firm's financial statements.

1.Financial proportions

2.Fiscal relations

3.Financial ratios

4.Fiscal proportions


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!