Financial Management - Financial Management Multiple Choice Questions

1:  

If the Present Value of Cash Inflows are greater than the Present Value of Cash Outflows, the project would be

A.

Accepted

B.

Rejected with condition

C.

Rejected with approval

D.

Rejected

 
 

Option: A

Explanation :

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Thando said: (3:13am on Wednesday 21st February 2018)
asserts than liabilities
asaf said: (12:04am on Saturday 24th March 2018)
accepted because cash inflows keep the business running and is a sign for the long life of the business
NIck said: (10:12pm on Wednesday 25th April 2018)
The management of Shruti Ltd. wants to invest Rs. 80,000 in a project which will giveearnings for five years. The earnings after tax and before depreciation will be Rs. 20,000 in the first year, Rs. 40,000 in the second year, Rs. 40,000 in the third year, Rs. 20,000 in the fourth year and Rs. 10,000 in the fifth year.Please suggest management whether this project is worth-while to be taken, if management has suggested 12 % discount rate for the computation of present value. Anyone solve this question ?

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2:  

Finance functions are

A.

Planning for funds

B.

Raising of funds

C.

Allocation of Resources

D.

All of the above

 
 

Option: D

Explanation :

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3:  

Match the following

List-I (Type of Value)      List-II (Features)

(A) Fair value                      1. Shares

(B) Replacement value        2. To set up a new plant

(C) Value of image              3. Goodwill

(D) Market value                 4. Consumable items

                                          5. Wastage

A.

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

1    4    3    2

B.

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

1    2    3    4

C.

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

3    1    2    4

D.

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

1    4    3    5

 
 

Option: B

Explanation :

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4:  

Assertion (A) : Special rules and procedures are followed in the import and export trade.

Reason (R) : The need for import and export trade is explained by the principles of 'Comparative Cost Theory'.

A.

Both A and R are true and R is the correct explanation of A

B.

Both A and R are true but R is not a correct explanation of A

C.

A is true but R is false

D.

A is false but R is true

 
 

Option: B

Explanation :

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Sheenam said: (8:46pm on Tuesday 6th March 2018)
Explain reason why comparative cost theory not apply

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5:  

Match the following

List-I (Items)            List-II (Part)

(A) Dividend               1. Portion of Current Assets

(B) Stock                    2. Fixed Liabilities

(C) Reserve                3. Portion of Profit

(D) Depreciation         4. Surplus

                                 5. Charge against Profit

A.

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

1    2    3    4

B.

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

1    4    3    2

C.

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

3    1    4    5

D.

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

3    1    4    2

 
 

Option: C

Explanation :

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  • Financial Management MCQ can be used for the preparation of quizzes.
  • Financial Management Questions Answers can be used to prepare for UGC NET Commerce, UGC NET JRF and many more.
  • Financial Management objective type questions answers can be used in the preparation of Ph. D Entrance exams.
  • Financial Management multiple choice questions answers can be used to gain a credit score in various undergraduate and post graduate courses.
  • These questions can also be used by any students for improving their knowledge in Financial Management. 
  • These mcq can also be used by any student of XI or XII standard who has opted to study commerce to increase his knowledge in Financial Management.