Financial Management Quiz 41 (30 MCQs)

Quiz Instructions

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1. ..... capital should be preferred while arranging for a long-term finance?
2. The most liquid of all assets, cash, appears on the first line of the balance sheet.
3. SDL is a tax imposed on companies resident in the Republic of South Africa i.e. incorporated under the laws of, or which are effectively managed in, the Republic, and which derive income from within or outside the Republic.
4. Kumar company has sales of Rs. 25, 00, 000. Variable cost of Rs. 12, 50, 000 and fixed cost of Rs. 50, 000 and debt of Rs. 12, 50, 000 at 8% rate of interest. Calculate combined leverage.
5. What do you mean by Financial Stability?
6. ..... is the long term strategy for financing proposed capital expenditure
7. The capital raised by a business or corporation through the issueand subscription of shares and is being paid through dividends tostockholders.
8. Is anything that increases your ability to generate value.
9. An empty jar can help me with this situation.
10. Your department at work places $ 10, 000 every year-end into an account earning 5%. The money is used when the corporate office fails to fully finance your profitable projects. The money has not been touched since the first deposit was made exactly five years ago. If the most recent deposit was made today, how much money is currently in the account?
11. Twin objectives of financial planning are
12. It pertains to the firm's ability to pay any immediate and incoming cash disbursements
13. What is influenced by the financing decision?
14. When risk increase, the return will
15. What does a declining net profit margin over consecutive periods suggest about an SME's financial performance?
16. What has the same meaning as positive cash flow?
17. There are 7 principles of financial management, some of which are as follows:
18. What type of assets include cash and those items that can be readily converted into cash?
19. Which of the following is not an advantage of issuing bonds?
20. What document gives the right to make healthcare decisions, on someone else's behalf
21. Ke = D/MP x 100, is used for
22. Five years ago, sona Limited issued 12 % irredeemable debentures at Rs. 103, at Rs. 3 premium to their par value of Rs. 100. The current market price of these debentures is Rs. 94. If the company pays corporate tax at a rate of 35 %, calculate its current cost of debenture capital?
23. Under Private Placement, shares are never offered to (
24. In a way that doesn't change
25. I InsuranceII Emergency FundIII Savings and InvestmentsIV Debt ManagementBased on the above, which should be included into financial plan?
26. Capital budgeting decision has a direct impact on liquidity as well as profitability of a business
27. In case of recurring deposit the fixed amount is deposited in a bank every month for a fixed period of time.
28. How would you define financial management?
29. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960 How much is the total current assets?
30. .... permanent capital and cannot be withdrawn during the lifetime of the company?