Classical

Financial Management - Financial Management Multiple Choice Questions

11:  

Match the following

List-I (Functions of Treasurer)    List-II (Elements)

(A) Cash Management                      1. Cash Reserve Ratio

(B) Credit Management                     2. Average Collection Period

(C) Security                                      3. Safe Custody

(D) Financial Planning                       4. Capital Structure

                                                        5. Cost

A.

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

1    2    3    4

B.

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

2    3    1    4

C.

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

3    1    4    2

D.

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

1    4    2    3

 
 

Option: A

Explanation :

Click on Discuss to view users comments.

Write your comments here:



12:  

The Present Value of all inflows are cumulated in

A.

Order of Investment

B.

Order of Cash

C.

Order of Time

D.

Order of Sales

 
 

Option: C

Explanation :

Click on Discuss to view users comments.

Write your comments here:



13:  

The cost of debt capital is calculated on the basis of

A.

Net proceeds

B.

Annual Interest

C.

Capital

D.

Annual Depreciation

 
 

Option: B

Explanation :

Click on Discuss to view users comments.

Write your comments here:



14:  

A(n) __________ would be an example of a principal, while a(n)___________would be an example of an agent.

A.

shareholder; manager

B.

manager; owner

C.

accountant; bondholder

D.

shareholder; bondholder

 
 

Option: A

Explanation :

Click on Discuss to view users comments.

Write your comments here:



15:  

Degree of Combined leverage can be obtained by

A.

EBIT + Fixed Costs/EBIT - Total Interest Expense

B.

EBT/Sales

C.

Sales/Contribution x 100

D.

Sales/Cash x 100

 
 

Option: A

Explanation :

Click on Discuss to view users comments.

Write your comments here: