Financial Management
Multiple Choice Multiple Answer
QuestionThe collection programme of the firm consists of
Correct Answer
Maintaining the state of receivables , Dispatch of letters to customers whose due date is approaching , Telegraphic and Telephonic advice to customers around the due date
Your Answer
Telegraphic and Telephonic advice to customers around the due date , Maintaining the state of receivables , Dispatch of letters to customers whose due date is approaching
Select The Blank
Question
Shareholders of a joint stock company appoint their representative in the form of ________ to carry on the day-to-day affairs of the company
Correct Answer
Directors
Your Answer
Directors
Select The Blank
Question
________ in liabilities involves inflow of funds
Correct Answer
Increase
Your Answer
Increase
Match The Following
Question
Correct Answer
Your Answer
Recurring duties of finance executive
Raising of funds
Cost management
Objective of finance function
Profit maximization
Profit maximization
Treasurer
Cost management
International Finance
Finance Controller
Internal Auditing
Raising of funds
Multiple Choice Multiple Answer
Question
The advantages of leasing for the lessee are
Correct Answer
The payment of lease rents is the tax deductible expenditure , It is the quickest method of financing the requirements of long term capital , Avoids risk of ownership
Your Answer
The payment of lease rents is the tax deductible expenditure , It is the quickest method of financing the requirements of long term capital , Avoids risk of ownership
Select The Blank
Question
The analytical method of inventory control which aims at concentrating efforts in those areas where attention is required most is termed as ________
Correct Answer
ABC Analysis
Your Answer
ABC Analysis
Select The Blank
Question
Lease agreement is the most important document as it starts the ________ relationship between the lessor and lessee
Correct Answer
Legal
Your Answer
Legal
True/False
Question
Ratio should be computed on the basis of inter-related figures which have a cause and effect relationship
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
The main function of finance under the traditional approach comprises of
Correct Answer
Procurement of funds
Your Answer
Procurement of funds
Multiple Choice Single Answer
Question
The Proprietary concern is owned by
Correct Answer
Only one person
Your Answer
Only one person
Multiple Choice Multiple Answer
Question
The limitations of ratio analysis are
Correct Answer
Ratios are based on historical financial statements rather than future happenings , Ratios are only indicators, they cannot be taken as final regarding good or bad financial position of the business , Ratio analysis takes in to consideration only monetary transactions
Your Answer
Ratios are based on historical financial statements rather than future happenings , Ratios are only indicators, they cannot be taken as final regarding good or bad financial position of the business , Ratio analysis provides data for inter-firm comparison
Multiple Choice Multiple Answer
Question
The disadvantages of a Partnership firm are
Correct Answer
Unlimited liability , Capacity to raise funds to meet complex business operations is limited
Your Answer
Unlimited liability , Capacity to raise funds to meet complex business operations is limited
Multiple Choice Single Answer
Question
Float indicates
Correct Answer
the difference between the bank balance as per the bank book and as per the bank pass book/bank statement
Your Answer
the difference between the bank balance as per the bank book and as per the bank pass book/bank statement
Multiple Choice Single Answer
Question
Financing consists of the raising, providing, managing of all the money, capital or funds of any kind to be used in connection with the business' is defined by
Correct Answer
Bonneville and Dewey
Your Answer
Kenneth Midgley and Ronald Burns
Select The Blank
Question
If the company pays the dividend out of retained profits, then the amount to be drawn from the reserve shall not exceed an amount equal to ________ of its paid up capital and free reserves
Correct Answer
0.1
Your Answer
0.1
True/False
Question
Introduction of a heavy amount of debt capital in the capital structure will not only reduce the valuation of the firm but will also increase the cost of capital
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
An increase in the share premium account is
Correct Answer
Source of funds
Your Answer
Source of funds
Multiple Choice Single Answer
Question
Current liabilities consist of
Correct Answer
Creditors
Your Answer
Creditors
True/False
Question
Issue of Bonus shares is the remedy used in the situation of overcapitalisation
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
Question
Current assets are also referred to as
Correct Answer
Working Capital
Your Answer
Working Capital
Select The Blank
Question
The basic objective of ________ management is to reduce the operating cash requirement to the minimum possible extent without affecting the routine transactions.
Correct Answer
Cash
Your Answer
Cash
Match The Following
Question
Correct Answer
Your Answer
Advantage of Net present value
considers cash inflows from the project throughout its life
presupposes that the cash inflows can be reinvested immediately to yield the return equivalent to the Internal rate of return
Disadvantage of Accounting rate of return
uses profits after depreciation and taxes and not the cash inflows for evaluating the projects
considers cash inflows from the project throughout its life
Disadvantage of Pay back period
ignores time value of money
ignores time value of money
Advantage of Discounted Pay back period
considers time value of money
considers time value of money
Multiple Choice Multiple Answer
Question
Limitations of Average collection period
Correct Answer
Average Collection period assumes that the credit sales are evenly spread throughout the year. In practical circumstances, credit sales are not evenly spread throughout the year , The amount of credit sales made by company or the normal credit period offered by the company are not available in the published financial statements
Your Answer
Average Collection period assumes that the credit sales are evenly spread throughout the year. In practical circumstances, credit sales are not evenly spread throughout the year , The amount of credit sales made by company or the normal credit period offered by the company are not available in the published financial statements , Not proper cost benefit analysis made by the company
True/False
Question
Traditional approach believes the existence of Optimal Capital structure
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
Assuming the current ratio is 2, in which cases would the current ratio decline
Correct Answer
Purchase of fixed Assets , Borrow Money on an Interest bearing promissory note
Your Answer
Issue of new shares , Purchase of fixed Assets , Cash collected from customers
Select The Blank
Question
The amount of profit earned after recovering the interest on long term sources of capital is referred to as ________
Correct Answer
Profit before taxes
Your Answer
Profit before Interest and Taxes
Select The Blank
Question
The concept of watered capital is confined to the time of ________ of the company
Correct Answer
Promotion
Your Answer
Promotion
True/False
Question
Capital budgeting process involves the estimation of various future aspects regarding future cash inflows, life of the project etc.
Correct Answer
True
Your Answer
True
True/False
Question
A good Budget manual promotes standardization and simplification of budgetary procedures
Correct Answer
True
Your Answer
True
True/False
Question
Return on Assets is a ratio of relationship between Assets and Sales
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
Question
Increase in the amount in debtors results in
Correct Answer
Decrease in cash
Your Answer
No change in cash
Multiple Choice Single Answer
Question
The symptom of low capacity utilisation will be shown by
Correct Answer
Fixed Assets Turnover ratio
Your Answer
Fixed Assets Turnover ratio
Multiple Choice Single Answer
Question
From the following data, work out the Economic order quantity : Annual Demand : 5000 units, Ordering cost Rs. 60 per order, Price per unit Rs. 100, Inventory carrying cost is 15% on average inventory
Correct Answer
200 units
Your Answer
200 units
Select The Blank
Question
________ ratio will be useful in indicating the symptom of inability to pay dues to financial institutions
Correct Answer
Debt Service Coverage ratio
Your Answer
Debt Equity
Multiple Choice Multiple Answer
Question
The patterns of Dividend policy are
Correct Answer
Stable Dividend policy , Irregular Dividend policy , No immediate Dividend policy
Your Answer
Stable Dividend policy , Irregular Dividend policy , No immediate Dividend policy
Multiple Choice Single Answer
Question
The Walter and Gordon's approach of Dividend policy is based on the assumption of
Correct Answer
Retained earnings represent the only source of financing for the firm, EPS, dividend per share, internal rate of return and cost of capital are all constant
Your Answer
Retained earnings represent the only source of financing for the firm, EPS, dividend per share, internal rate of return and cost of capital are all constant
Select The Blank
Question
The payment of Dividend in the form of Bonus shares involves ________
Correct Answer
only transfer of retained earnings to share capital
Your Answer
only transfer of retained earnings to share capital
Multiple Choice Single Answer
Question
Gross Profit ratio is calculated as
Correct Answer
[(Gross Profit / Net Sales)] * 100
Your Answer
[(Gross Profit / Net Sales)] * 100
True/False
Question
If the process of capital rationing is strictly followed it may result into the exclusion of various smaller projects by larger projects
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
External sources of cash are as follows :
Correct Answer
Issue of new shares , long term loans , short term borrowings
Your Answer
Issue of new shares , long term loans , short term borrowings
Select The Blank
Question
Profit after taxes can be distributed among the owners of the company by way of ________
Correct Answer
dividend
Your Answer
dividend
Multiple Choice Single Answer
Question
The Policy which attracts the shareholders who are willing to devote short term dividend income for long term capital gains and share in the increased prosperity of the company is termed as
Correct Answer
No immediate Dividend policy
Your Answer
No immediate Dividend policy
Multiple Choice Multiple Answer
Question
The Economic Order Quantity model is based on the assumption of
Correct Answer
Placing and receiving orders is without any delay , Ordering costs and carrying costs associated with the orders are variable in nature and they behave exactly opposite to each other , The demand for the material concerned is uniform throughout the year
Your Answer
The prices of the material remain unstable , Ordering costs and carrying costs associated with the orders are variable in nature and they behave exactly opposite to each other , The demand for the material concerned is uniform throughout the year
Multiple Choice Multiple Answer
Question
Measurement of cost of capital can be done through
Correct Answer
Cost of Debt , Cost of Preference shares , Cost of Equity shares
Your Answer
Cost of Debt , Cost of Preference shares , Cost of Equity shares
True/False
Question
Financial leverage is calculated as ( Sales - Variable cost ) / ( Earnings before Interest and tax - Interest )
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
Question
Capital cost is
Correct Answer
cost on the use of additional capital to support credit sales
Your Answer
additional expenses on the creation and maintenance of a credit department
Multiple Choice Single Answer
Question
The rate at which an organisation must pay to the suppliers of capital for the use of their funds is termed as
Correct Answer
cost of capital
Your Answer
cost of investment
Question
Shareholders of a joint stock company appoint their representative in the form of ________ to carry on the day-to-day affairs of the company
Correct Answer Directors
Your Answer Directors
Select The Blank
Question
In case of Bills Purchased, the company gets only the present worth of the amount of the bill, the difference between the face value of the bill and the amount of assistance being in the form of ________
Correct Answer discount charges
Your Answer commission charges
True/False
Question Profitability Statement is a period statement
Correct Answer True
Match The Following
Question
Correct Answer
Your Answer
Profitability ratio
Ratios which reflect the final results of business operations
Ratios which reflect the final results of business operations
Turnover ratios
Ratios measuring the efficiency with which the assets are employed by a firm
Ratios measuring the efficiency with which the assets are employed by a firm
Overall profitability ratio
Ratios which indicates the percentage of return on the total capital employed in the business
Ratios which indicates the percentage of return on the total capital employed in the business
Financial ratios
Ratios disclosing the financial position or solvency of the firm
Ratios disclosing the financial position or solvency of the firm
Select The Blank
Question
The debt equity ratio of the company after such buy back of shares should not be more than ________ except where the Central Government allows a higher ratio in case of certain companies
Correct Answer 2:1
Your Answer 2:1
Multiple Choice Single Answer
Question
An organized collection of data according to logical and consistent accounting procedure is known as
Correct Answer Financial Statement
Select The Blank
Question
If the amount of interest is considered as a part of expenses, the ________ liability of the company reduces proportionately
Correct Answer tax
Your Answer current
Select The Blank
Question
________ financing is more preferred route for venture capital funding
Correct Answer Equity
Your Answer Lease
Multiple Choice Multiple Answer
Question Overall profitability ratio includes
Correct Answer
Return on Asset , Return on Shareholders Funds
Multiple Choice Single Answer
Question The traditional approach to financial management refers only to the procurement of funds by
Correct Answer Corporate entity
Multiple Choice Multiple Answer
Question The recommendations of the Tandon committee included
Correct Answer
the norms for inventory and accounts receivables for as many as 15 industries excluding heavy engineering industry , that the amount of bank credit should not be decided by the capacity of the borrower to offer security to the banks but it should be decided in such a way to supplement the borrower's resources in carrying a reasonable level of current assets in relation to his production requirement
True/False
Question
In case of lease transactions, neither the assets side nor the liabilities side of the balance sheet of lessee gets affected
Correct Answer True
Multiple Choice Single Answer
Question
The effect of Purchase of machinery by issue of debentures on the funds flow is that there will be
Correct Answer No effect on the funds flow
Multiple Choice Single Answer
Question Stock in the beginning results in
Correct Answer Application of funds
True/False
Question
Issue of Bonus shares is the remedy used in the situation of overcapitalisation
Correct Answer
False
Multiple Choice Single Answer
Question
A company cannot make the public issue of equity shares unless
Correct Answer
It has made an application for listing of these equity shares in the stock exchange
Multiple Choice Multiple Answer
Question
The current ratio of a company is 2:1 ; Which of the following suggestions would improve the current ratio
Correct Answer
Payment of current liability , To sell a motor car for cash at a slight loss
Your Answer
To borrow money on an interest bearing promissory note , Payment of current liability , To purchase stocks against cash
Multiple Choice Single Answer
Question The Policy which attracts the shareholders who are willing to devote short term dividend income for long term capital gains and share in the increased prosperity of the company is termed as
Correct Answer
No immediate Dividend policy
Select The Blank
Question
Private limited company and Public limited company are the companies based on the classification of ________
Correct Answer Number of members
Your Answer Incorporation
Multiple Choice Single Answer
Question
The main function of finance under the traditional approach comprises of
Correct Answer Procurement of funds
Your Answer Working Capital management
True/False
Question :In narrow sense funds means only cash resources of the business
Correct Answer True
Multiple Choice Multiple Answer
Question Importance of capital budgeting decisions
Correct Answer
They represent the true earning assets of the firm , they are irreversible , they require assessment of future events which are uncertain
Multiple Choice Single Answer
Question
Financing consists of the raising, providing, managing of all the money, capital or funds of any kind to be used in connection with the business' is defined by
Correct Answer Bonneville and Dewey
Multiple Choice Single Answer
Question Net Profit earned plus non-working capital expenses is equal to
Correct Answer Fund provided by operations
Your Answer Source of funds
True/False
Question
Economic Order Quantity model is a very useful model of determining the order quantity
Correct Answer True
Multiple Choice Multiple Answer
Question Situation of capital rationing may involve problems in the form of
Correct Answer
Project Indivisibility , Mutually dependent project , Multi period projects
Multiple Choice Single Answer
Question Live Stock is an example of
Correct Answer Fixed Asset
True/False
Question
In calculating funds from operations non-business expenses like dividends paid etc. as well as non cash expenses like depreciation etc. are added back in the net profits shown by the Profit & Loss Account
Correct Answer True
Multiple Choice Single Answer
Question Minimum tradable lot in case of shares having the face value of Rs. 10 per share shall not be more than
Correct Answer 100 shares
Select The Blank
Question The dealing with the financial matters of the government is termed as ________ field of finance
Correct Answer Public
Select The Blank
Question Liquidity ratios indicate the ________ position of the organisation
Correct Answer Short term
Select The Blank
Question ________ are basically interested in the solvency position of the organisation
Correct Answer Financial institution lending long term finance
Match The Following
Dahejia committee
to examine the extent to which credit needs of industry and trade are likely to be inflated and how such trends could be checked
Chhore committee
to review mainly the system of cash credit management policy by banks
Marathe committee
to review the credit authorization scheme
Nayak committee
to recognize the contribution made by the SSI sector to the economy
Multiple Choice Multiple Answer
Question Unsecured loans includes
Correct Answer Fixed Deposit , Inter corporate unsecured deposits
Your Answer Inter corporate unsecured deposits , Debentures
Multiple Choice Single Answer
Question
The ratio which compares the dividend per share with the market price of the share is termed as
Correct Answer Dividend yield ratio
Your Answer Dividend payout ratio
True/False
Question
When the firm's actual bank balance is greater than the balance shown by the firm's books, the difference is called as 'payment float'
Correct Answer True
Select The Blank
Question Turnover ratios measures how efficiently the ________ are employed by the firm
Correct Answer Assets
Multiple Choice Single Answer
Question
The investor is prepared to pay the market price of the shares as he expects not only the payment of the dividend but also expects a growth in the dividend rate at a uniform rate perpetually under the
Correct Answer Dividend /Price + Growth rate Approach
True/False
Question Liquid liabilities includes all current liabilities except bills payable
Correct Answer False
True/False
Question A partnership is an incorporated association of individuals.
Correct Answer False
Multiple Choice Multiple Answer
Question The external users of financial statements are
Correct Answer Lenders , Suppliers
Your Answer Lenders , Board of Directors , Suppliers
Multiple Choice Multiple Answer
Question Measurement of cost of capital can be done through
Correct Answer Cost of Debt , Cost of Preference shares , Cost of Equity shares
Multiple Choice Multiple Answer
Question The Proprietary concern is better than the Partnership concern on the following points
Correct Answer
Minimum Government regulations , Where the business is small
Multiple Choice Single Answer
Question The semi-manufactured products which need further processing are termed as
Correct Answer Work in Progress
Multiple Choice Multiple Answer
Question
Disadvantages of factoring are
Correct Answer
The financial burden on the company increases , It may be considered to be a symptom of financial weakness on the part of the selling company , In Indian circumstances, factoring is mainly with-recourse factoring. The risk of non-payment on the part of customer is borne by the selling firm. This restricts its popularity
True/False
Question Internal rate of return indicates that the discounting rate at which net present value is zero
Correct Answer True
Multiple Choice Multiple Answer
Question The Economic Order Quantity model is based on the assumption of
Correct Answer
Placing and receiving orders is without any delay , Ordering costs and carrying costs associated with the orders are variable in nature and they behave exactly opposite to each other , The demand for the material concerned is uniform throughout the year
Select The Blank
Question: In case of Bills Purchased, the company gets only the present worth of the amount of
the bill, the difference between the face value of the bill and the amount of assistance
being in the form of ________
Correct Answer: discount charges
Your Answer: interest charges
Match The Following
Question Correct Answer Your Answer
Nayak committee to recognize the contribution made by the SSI sector to the economy
to determine the quantum of bank advances
Dahejia committee to examine the extent to which credit needs of industry and trade are
likely to be inflated and how such trends could be checked
to review mainly the system of cash credit management policy by
banks
Chhore committee to review mainly the system of cash credit management policy by
banks
to find measures to improve the present manner and style of lending
Marathe committee to review the credit authorization scheme
to recognize the contribution made by the SSI sector to the
economy
Multiple Choice Multiple Answer
Question: Before investing in the project, Venture capitalist is interested in ensuring that
Correct Answer: The project is technically feasible , It is commercial viable , The
entrepreneurs are technically competent
Your Answer: The project is technically feasible , It is commercial viable , The
entrepreneurs are technically competent
Multiple Choice Single Answer
Question: The reduction in the market value of the shares may cause due to
Correct Answer: Overcapitalisation
Your Answer: Overcapitalisation
Multiple Choice Multiple Answer
Question: The internal factors affecting the dividend policy are
Correct Answer: Growth rate of the company , Composition of the shareholding
Your Answer: Growth rate of the company , Composition of the shareholding
Multiple Choice Single Answer
Question: The time required by the company to process the received cheque and deposit
the same in the bank is called
Correct Answer: Deposit float
Your Answer: Bank float
Multiple Choice Single Answer
Question: Minimum application money payable by the applicant along with the
application shall not be less than
Correct Answer: 25% of the issue price
Your Answer: 20% of the issue price
True/False
Question: Overdraft is given by the bank for a very short period of time, at the end of
which the company is supposed to repay the same
Correct Answer: True
Your Answer: True
True/False
Question: One of the basic objectives of cash management is to maintain the optimum
cash balance
Correct Answer: True
Your Answer: True
True/False
Question: Internal rate of return is difficult to use , calculate and understand
Correct Answer: True
Your Answer: True
Multiple Choice Single Answer
Question: The mix of sources from which the long term funds required by a business are
raised is termed as
Correct Answer: Capital Structure
Your Answer: Capital Budgeting
Multiple Choice Single Answer
Question: The Investment decisions are mainly concerned with
Correct Answer: Application of funds
Your Answer: Application of funds
Select The Blank
Question: Cost management is the function of a ________.
Correct Answer: Treasurer
Your Answer: Finance manager
Multiple Choice Single Answer
Question: Which of the following assets get generated during course of operations or get
utilized within one year
Correct Answer: Current assets
Your Answer: Current assets
Select The Blank
Question: The ________ has been empowered to order the company that fails to repay
any deposit to make the repayment of such deposits
Correct Answer: Company Law board
Your Answer: Company Law board
True/False
Question: With limited funds, the company must obtain the optimum combination of
acceptable investment proposals
Correct Answer True
Your Answer True
Select The Blank
Question The projects having Profitability index of less than ________ will be rejected
Correct Answer one
Your Answer one
Multiple Choice Single Answer
Question The Capital Structure decision mainly refers to the decision of
Correct Answer Financing
Your Answer Financing
Multiple Choice Single Answer
Question The value created by the use of resources is more than the total of the input
resources is referred to as
Correct Answer Profit
Your Answer Income
Multiple Choice Single Answer
Question Financing consists of the raising, providing, managing of all the money, capital
or funds of any kind to be used in connection with the business' is defined by
Correct Answer Bonneville and Dewey
Your Answer Kenneth Midgley and Ronald Burns
Multiple Choice Multiple Answer
Question The advantages of operating lease is
Correct Answer In an operating lease arrangement the equipment risk is transferred to thelessor,
It minimizes investment in equipment , Reduces expenditure on maintenance
Your Answer In an operating lease arrangement the equipment risk is transferred to the lessor ,
It minimizes investment in equipment
True/False
Question The requirement of Fixed Working Capital is unaffected due to the changes in the
level of activity
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Undercapitalisation is
Correct Answer Excess of real worth of the assets over the aggregate of shares and debentures
outstanding
Your Answer Excess of real worth of the assets over the aggregate of shares and debentures
outstanding
Multiple Choice Single Answer
Question The main function of finance under the traditional approach comprises of
Correct Answer Procurement of funds
Your Answer Procurement of funds
Multiple Choice Multiple Answer
Question The cost of managing inventory includes
Correct Answer Ordering cost , Carrying cost
Your Answer Maintenance cost , Ordering cost , Carrying cost
True/False
Question Internal rate of return does not considers cash inflows from the project throughout its
Life
Correct Answer False
Your Answer False
True/False
Question If the company buys back its own shares, it shall not make further issue of Bonus
shares within a period of 24 months
Correct Answer False
Your Answer True
True/False
Question Informal method of capital budgeting does not follow any mathematical or statistical
model to consider the risk factor
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Utility of cash flow analysis
Correct Answer Helps in efficient cash management , helps in internal financial management ,
Discloses the movements of cash
Your Answer Helps in efficient cash management , helps in internal financial management ,
Discloses the movements of cash
Multiple Choice Multiple Answer
Question Undue decrease in Gross Profit ratio may indicate
Correct Answer Non-consideration of sales invoices , Under-valuation of closing stock ,
Improper utilisation of infrastructural facilities
Your Answer Non-consideration of sales invoices , Under-valuation of closing stock ,
Improper utilisation of infrastructural facilities
Multiple Choice Multiple Answer
Question The techniques of Analysis and Interpretation of financial statements are
Correct Answer Ratio Analysis , Cash flow Analysis
Your Answer Profit and loss account , Balance Sheet
Multiple Choice Multiple Answer
Question The importance of various items of inventory may be decided on the following factors
Correct Answer Value of material consumption , Critical nature of inventory items , Amount
of investment in inventory
Your Answer Amount of investment in inventory , Value of material consumption , Critical
nature of inventory items
Multiple Choice Single Answer
Question Receivable management is also called as
Correct Answer Trade Credit management
Your Answer Trade Credit management
Multiple Choice Multiple Answer
Question The avenues available to the company to invest the excess cash balance on short term
basis may be in the form of
Correct Answer Commercial paper , inter-corporate bills discounting , Bank deposits
Your Answer Commercial paper , inter-corporate bills discounting , Bank deposits
Select The Blank
Question The mathematical expression of ________ is Normal Usage * Lead time for
emergency purchases
Correct Answer Danger level
Your Answer Danger level
Multiple Choice Single Answer
Question Current assets are also referred to as
Correct Answer Working Capital
Your Answer Working Capital
True/False
Question The objective of funds flow statement may be to find out uses of loans raised by the
business
Correct Answer True
Your Answer False
Match The Following
Question Correct Answer Your Answer
Contribution Sales less variable operating cost - Sales less variable operating cost
Operating Profit Contribution less Fixed Operating cost- Contribution less Fixed Operating cost
Fixed cost remains constant - remains constant
Variable cost varies in direct proportion to the sales revenue - varies in direct proportion to the
sales revenue
True/False
Question Semi-variable cost is the cost which varies in direct proportion to the sales revenue
Correct Answer False
Your Answer True
Select The Blank
Question ________ and return always go hand in hand
Correct Answer Risk
Your Answer Risk
Select The Blank
Question Inflow of funds may not necessarily result in ________
Correct Answer Inflow of cash
Your Answer Inflow of cash
Multiple Choice Single Answer
Question If the issue of Debentures is having the maturity period of more than 18 months, the
company shall create
Correct Answer Debenture Redemption reserve
Your Answer Debenture Redemption reserve
Multiple Choice Single Answer
Question Tax paid is
Correct Answer Application of funds
Your Answer Application of funds
Select The Blank
Question The most crucial financial decisions of the organisation are taken by ________
Correct Answer Board of Directors
Your Answer Vice President (finance)
Multiple Choice Single Answer
Question Unclaimed Dividends is shown in the balance sheet under the head
Correct Answer Current liabilities and Provisions
Your Answer Reserves
Select The Blank
Question ________ is clubbed with Current Assets in the Balance Sheet
Correct Answer Loans and advances
Your Answer Investments
