Classical

Financial Accounting - Financial Accounting MCQ

56:  
Match List-I with List-lland select the correct answer using the codes given below the lists:
     List-I          List-II
a. Adam       I. Subsistence smith theory
b. Karl         II. Wage Fund Mary theory
c. John       III. The surplus Davidson value theory
d. David     IV. Bargaining Ricardo theory
A.

 a   b    c   d

 II   III   IV   I

B.

 a   b    c   d

 I    II     III  IV

C.

 a   b    c   d

 IV   I    II   III

D.

 a   b    c   d

 III   IV   I   II

 
 

Option: A

Explanation :


57:  
Which statement is true about financial management?
A.

An option is a claim without any liability.

B.
The wealth of a firm is defined as the market price of the firm's stock.
C.
The maximisation of profit is often considered as an implied objective of a firm.
D.

All of the above.

 
 

Option: D

Explanation :


58:  
The basic objective of financial Management is
A.

Maxirnization of profits.

B.

Profit planning of the organisation.

C.

Maximization of shareholders wealth

D.
Ensuring financial disciplined in the organisation.
 
 

Option: C

Explanation :


59:  
Two mutually exclusive projects with different economic lives can be compared on the basis of
A.

Internal Rate of Return

B.

Profitability Index

C.

Net Present Value

D.

Equivalent Annuity value

 
 

Option: D

Explanation :


60:  
Assertion (A). Management of working capital refers to the management of current assets and current liabilities.
Reason (R). But the major thrust of course is on the management of current assets because current liabilities arise in the context of current assets.
A.

Both (A) and (R) are correct.

B.

(A) is correct and (R) is incorrect.

C.

Both (A) and (R) are incorrect.

D.

(A) is incorret, but (R) is correct.

 
 

Option: B

Explanation :




Suggest an improvement