Financial Management - Financial Management Objective Questions

6:  

Which is the merits or advantages of 'Net Present Value Method'?

A.

This method considers the entire economic life of the project

B.

It takes into account the objective of maximum profitability

C.

This method can be applied where cash inflows are even

D.

All of the above

 
 

Option: D

Explanation :

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7:  

Capital budgeting is known as

A.

Cost of Product

B.

Capital Expenditure

C.

Cost of Sales

D.

Profit

 
 

Option: B

Explanation :

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8:  

Match the following

List-I (Items/ Method)              List-II (Used/Application)

(A) Rate of Return Method               1. Capital budgeting

(B) Purchase Consideration              2. Merger

(C) Diminishing Balance Method      3. Depreciation

(D) FIFO Method                             4. Stores Recording

                                                      5. Marketing

A.

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

1    4    3    2

B.

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

3    2    4    1

C.

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

1    2    3    4

D.

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

1    3    2    4

 
 

Option: C

Explanation :

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9:  

Which formula may be used for calculation of cost of Retained Earnings?

A.

Kr = MP/D x 100

B.

Kr = D(1 – Ti)(1 – Bc)/MP (1 – Tc) x 100

C.

Kr = MP/D x 100

D.

Kr = D(1 – Ti)/MP

 
 

Option: B

Explanation :

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10:  

Match the following

List-I (Function of Financial Controller) List-II (Features)

(A) Financial Statement                           1. Allocation of Fund

(B) Budget                                              2. Checking of Internal Activities

(C) Internal Audit                                    3. Preparation of Balance Sheet

(D) Administration Of Tax                        4. Reduction Of Tax Liability

                                                              5. Salary

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    2    4

D.

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

3    4    2    1

 
 

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.