Classical

Financial Accounting - Financial Accounting MCQ

46:  
Read the following statement
(i) "The rate of return on investment increase with the shortage of working capital."
(ii) "Net working Capital is the excess of current assets over current liabilities.
(iii) "Greater the size of the business unit larger will be the requirement of working capital."
(iv) "Working Capital is also known as circulating capital."
Which one of the following consists of the correct statements.
A.

(i), (ii) and (iii)

B.

(ii), (iii) and (iv)

C.

(iii), (iv) and (i)

D.

(i), (ii) and (iv)

 
 

Option: B

Explanation :


47:  
Which one is not an important objective of financial Management?
A.

Profit Maximisation

B.

Wealth Maximisation

C.

Value Maximisation

D.

Maximisation of Social benefits

 
 

Option: D

Explanation :


48:  
Business Plans designed to achieve the organisation objective is called
A.

Human Resource Planning

B.

Human Resource forecasting

C.

Strategic plan

D.

Corporate Development Plan

 
 

Option: C

Explanation :


49:  
Which of the following statement are correct
(i) Inventory includes raw materials, finished goods, and work in progress, 
(ii) Inventory is a part of the working capitaL
(iii) Inventory includes goods likely to be purchased,
A.

(i), (ii), and (iii)

B.

(ii) and (iii)

C.

(i) and (iii)

D.

(i) and (ii)

 
 

Option: D

Explanation :


50:  
According to which of the following the firms market value is not affected by capital market.
A.

M.M. Hypothesis

B.

Net Income Approach

C.

The Traditional View

D.

None of the above

 
 

Option: A

Explanation :




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