Classical

Financial Management - Financial Management Objective Questions

26:  

Profitability Index computed by

A.

Cash Inflow/P/V

B.

Profitability/P/V

C.

Cost/Investment

D.

Present Value of Cash Inflows/Initial Cost Outlay

 
 

Option: D

Explanation :


27:  

Acid Test Ratio can be expressed as

A.

(Cash + Accounts Receivable + Shortterm Investments)/Current Liabilities

B.

Debtors/B/R

C.

Stock/Debtors

D.

B/R/Fixed Assets

 
 

Option: A

Explanation :


28:  

Match the following

List-I (Thinkers)

(A) Ezra Soloman

(B) Howard and Upton

(C) Weston and Brigham

(D) Wheeler

List-II (Statement)

1. Financial Management is the application of planning and control function to the finance function.

2. Financial Management is the activity which is concerned with the acquisition and administration of capital funds in meeting the financial needs and overall objectives of business enterprise.

3. Financial Management is concerned with the efficient use of an important economic resource, namely capital fund.

4. Financial Management is an area of financial decision making harmonising individual motives and enterprise goals.

5. Financial Management is a part of Tax Law.

A.

(A) (B) (C) (D)

1    2    3    4

B.

(A) (B) (C) (D)

3    1    4    2

C.

(A) (B) (C) (D)

3    1    2    4

D.

(A) (B) (C) (D)

5    4    1    3

 
 

Option: B

Explanation :


29:  

The finance manager plays an important role in

A.

Liquidation Decisions

B.

Reconstruction

C.

Amalgamation

D.

All of the above

 
 

Option: D

Explanation :


30:  

Which is external source of finance

A.

Letters of Credit

B.

Finance from Companies

C.

Advance from customers

D.

All of the above

 
 

Option: D

Explanation :




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