FINANCIAL MANAGEMENT (MCQS)

T.Y B.COM

SEMESTER - 5

MID SEMESTER EXAMINATION

FINANCIAL MANAGEMENT

(FM)

MCQS = OCTOBER -2018

(1) Increase in average Collection period implies: 

(A) Increase in debtor's turnover ratio

(B) Stringent credit policy

(C) Relaxation in credit period offered to

(D) Overstocking of inventory

(2)  From the following information, calculate Interest coverage ratio:

Profit after tax - Rs. 6,00,000

Tax rate - 40%

10% Debentures - Rs. 20,00,000

(A) 5 times

(B) 6 times  

(C) 4 times

(D) 8 times

(3) The main objective of Financial Management is:

(A) Increasing sales of the firm 

(B) Increasing market share

(C) Increasing profit only

(D) Maximizing shareholder's value

(4) From the following information, find out the amount of dividend per share:

Dividend yield - 20%

Market price per share - Rs.50

(A) Rs. 1

(B) Rs. 50

(C) Rs. 100

(D) Rs. 10

(5) Analysis of Financial statements

(i) Refers to the process of critical examination of Financial Information contained in Financial statements and

(ii) Can be done Using the technique of ratio analysis only.

(A) Both (i) and (ii) are false

(B) (i) is false (ii) is true

(C) Both (i) and (ii) are true

(D) (i) is true (ii) is false

(6) Match the following:

(i) Historical cost 

(ii) Future cost

(iii) Implicit cost 

(A) (i - a), (ii - b), (iii - c)

(B) (i - b), (ii - c), (iii - a)

(C) (i - a), (ii - c), (iii - b) 

(D) (i - c), (ii - b), (iii - a)

(7) Which of the following is NOT a function of treasurer?

(A) Obtaining Finance

(B) Investor relationship

(C) Banking relationship

(D) Internal Audit

(8) _________ Ratios are used for assessing the risk arising from the use of debt funds.

(A) Profitability

(B) Leverage

(C) Turnover

(D) Liquidity

(9) Match the following:

(i) Comparative Financial

(ii) Common size Financial

(iii) Trend Analysis

(A) (i - a), (ii - b), (iii - c)

(B) (i - b), (ii - c), (iii - a)

(C) (i - c), (ii - a), (iii - b) 

(D) (i - c), (ii - b), (iii - a)

(10) Which of the following is the core / basic concept of Financial Management?

(A) Risk and return

(B) Debit and credit

(C) Receipts and payments

(D) Costs and expenses

(11) If the value of inventory at the beginning of the year is Rs. 28,000 and end of the year is Rs. 42,000, sales Rs. 2,40,000 and gross profit Rs. 30,000, then inventory turnover ratio will be _____

(A) 6

(B) 5

(C) 4

(D) 3

(12) From the following information, calculate the amount of debtors:

Gross profit - Rs. 54,000.

Gross profit ratio - 20%

Credit sales is 80% of total sales.

Debtors turnover Ratio is 9 times.

(A) Rs. 2,40,000

(B) Rs. 42,000

(C) Rs. 24,000

(D) Rs. 30,000

(13) The objective of profit maximization

(i) Considers time value of money and 

(ii) Ignores risk 

(A) (i) is true and (ii) is false

(B) Both (i) and (ii) are false

(C) Both (i) and (ii) are true

(D) (i) is false and (ii) is true

(14) Form the following information, find out the amount of equity dividend paid : payout ratio - 60%

Profit before tax - Rs. 10,00,000

Tax rate - 40%

(A) Rs. 6,00,000

(B) Rs. 60,000

(C) Rs. 3,60,000

(D) Rs. 36,000

(15) From the following information, find out the amount of Net Profit:

Gross profit - Rs. 1,00,000

Gross profit ratio - 20%

Net profit Ratio - 10%

(A) Rs. 50,000

(B) Rs. 5,000

(C) Rs. 5,00,000

(D) Rs. 55,000

(16) Which of the following is/ are included in Finance Functions?

(A) Investment Decision

(B) Financing Decision

(C) Dividend Decision

(D) All of the above

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