MCQOPTIONS
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MCQOPTIONS
This section includes 2436 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 251. |
The Presence of Taxes in capital budgeting analysis will cause ___________ |
| A. | the arr to remain same |
| B. | the npv to increase |
| C. | the irr to decrease |
| D. | all of the above |
| Answer» D. all of the above | |
| 252. |
Intrinsic value of a bond is ______________ vlaue of the all future cash flows |
| A. | past |
| B. | present |
| C. | estimated |
| D. | future |
| Answer» C. estimated | |
| 253. |
______ Means the basic criteria for the extension of credit to customers |
| A. | credit standards |
| B. | finnacial position |
| C. | cash standards |
| D. | living standards |
| Answer» B. finnacial position | |
| 254. |
__________ Can be traded thourgh out the trading day at market prices |
| A. | mmmf |
| B. | debt fund |
| C. | etf |
| D. | equity fund |
| Answer» D. equity fund | |
| 255. |
MM model of dividend irrelevance uses arbitrage between- |
| A. | dividend and capital issue |
| B. | dividend and bonus |
| C. | profit and investment |
| D. | none of the above |
| Answer» B. dividend and bonus | |
| 256. |
Accountng rate of return is based on _____________ |
| A. | life of the project |
| B. | average expected profit |
| C. | average cash profit |
| D. | average past profit |
| Answer» C. average cash profit | |
| 257. |
Financial mananger would play the role of __________ in area of finance |
| A. | budget analyst |
| B. | cash analyst |
| C. | cash flow examiners |
| D. | persoanl financial advisors |
| Answer» B. cash analyst | |
| 258. |
_________Policy refers to the procedure follow to collect accounts receivable after the expiry of the credit period |
| A. | risk |
| B. | collection |
| C. | profit |
| D. | manangment |
| Answer» C. profit | |
| 259. |
Face value is the value stated on the face of the bond and is known as- |
| A. | redemption value |
| B. | per value |
| C. | intrinsic value |
| D. | market value |
| Answer» C. intrinsic value | |
| 260. |
Investors subscriptions are accounted as _____________ |
| A. | cash |
| B. | deposits |
| C. | liabilities |
| D. | unit capital |
| Answer» E. | |
| 261. |
Residuals theory argues that dividend is as - |
| A. | passive decision |
| B. | irrelevant decision |
| C. | active decision |
| D. | relevant decision |
| Answer» B. irrelevant decision | |
| 262. |
In case of risky projects the required rate of return would generally be- |
| A. | neutral |
| B. | lower |
| C. | moderate |
| D. | higher |
| Answer» E. | |
| 263. |
Financial manager would not supervise on the following area |
| A. | cost analyst |
| B. | working capital advisor |
| C. | financial accounting and auditing |
| D. | cash flow advisor |
| Answer» D. cash flow advisor | |
| 264. |
All listed and traded securities are valued at _______ |
| A. | book value |
| B. | cost |
| C. | cost+ profit |
| D. | closing market price |
| Answer» E. | |
| 265. |
Evaluation of firms credit policy can be done by computing expected ___________ from it |
| A. | net benefit |
| B. | net loss |
| C. | net profit |
| D. | net cost |
| Answer» B. net loss | |
| 266. |
When the required rate of return is less than the coupon rate the premium on the bond- |
| A. | remains same |
| B. | variable |
| C. | declines |
| D. | increases |
| Answer» D. increases | |
| 267. |
Bird in hand - argument is given by |
| A. | residuals theory |
| B. | walter model |
| C. | mm model |
| D. | gordon\s model |
| Answer» E. | |
| 268. |
PI of project is the ratio of present value of inflows to- |
| A. | total outflows |
| B. | initial cost |
| C. | pv of outflows |
| D. | total cash inflows |
| Answer» D. total cash inflows | |
| 269. |
Objectives of financial planning are |
| A. | determining capital structure |
| B. | framing loan policies |
| C. | determining cash requirement |
| D. | determining finance ratio |
| Answer» B. framing loan policies | |
| 270. |
Relaxed or libral credit implies -credit to customers |
| A. | higher |
| B. | both a and b |
| C. | lower |
| D. | neither a nor b |
| Answer» B. both a and b | |
| 271. |
The bonds with shorter maturity will have ______ duration |
| A. | moderate |
| B. | higher |
| C. | lower |
| D. | average |
| Answer» D. average | |
| 272. |
Which of the following variable is not known in IRR? |
| A. | discount rate |
| B. | terminal inflows |
| C. | life of the project |
| D. | intitial cash flows |
| Answer» B. terminal inflows | |
| 273. |
The maximum expenses that an equity scheme charge to an investor is ____________ |
| A. | 0.025 |
| B. | 0.0225 |
| C. | 0.0175 |
| D. | 0.02 |
| Answer» B. 0.0225 | |
| 274. |
Acccording to the traditional approach what is the effect of increase in degree of leverage on the valuation of the firm |
| A. | remains unaffected |
| B. | increase first and then decreases |
| C. | decreases |
| D. | increases |
| Answer» C. decreases | |
| 275. |
All business need to have which fundamental essential element |
| A. | human resources |
| B. | balance sheet |
| C. | labour team |
| D. | stategy |
| Answer» E. | |
| 276. |
Function of finance officers includes ----------------------- |
| A. | Continuous credit |
| B. | Co-ordination in fund |
| C. | Preparation of cost account |
| D. | Adequate liquidity |
| Answer» E. | |
| 277. |
A firm is said to be financially unlevered firm if the firm has ………. |
| A. | only external equity in its capital structure |
| B. | only owner‘s equity in its capital structure |
| C. | both external equity and owner‘s equity in its capital structure |
| D. | only equity share capital in its capital structure |
| Answer» C. both external equity and owner‘s equity in its capital structure | |
| 278. |
The objective of financial management is to |
| A. | Maximize the revenue |
| B. | Minimize the expenses |
| C. | Maximize the return on investment |
| D. | Maximize the wealth of the owners by increasing the value of the firm |
| Answer» E. | |
| 279. |
If NPV for a project is negative, then |
| A. | IRR = Cost of capital |
| B. | IRR > Cost of capital |
| C. | BCR = 1 |
| D. | IRR < Cost of capital |
| Answer» E. | |
| 280. |
Which is the part of restrictive covenants |
| A. | Asset related covenants |
| B. | Liability related covenants |
| C. | Cash flow related covenants |
| D. | All of these |
| Answer» E. | |
| 281. |
Capital composition of a company including long term, medium term and short term finances |
| A. | Capital gearing |
| B. | Capitalization |
| C. | Capital structure |
| D. | Financial structure |
| Answer» E. | |
| 282. |
Gross margin is added to cost of sold goods for calculating |
| A. | revenues |
| B. | selling price |
| C. | unit price |
| D. | bundle price |
| Answer» B. selling price | |
| 283. |
Which is the traditional method of capital budgeting |
| A. | Payback period |
| B. | Pay out method |
| C. | Accounting method |
| D. | All of these |
| Answer» E. | |
| 284. |
A company should arrange the capital structure in such a way that there is maximum flexibility in the capital and cost of capital is |
| A. | Maximum |
| B. | Minimum |
| C. | Expensive |
| D. | All of the above |
| Answer» C. Expensive | |
| 285. |
Ratio analysis is the process of determining and interpreting numerical relationshipsbased on _______. |
| A. | Financial values |
| B. | Financial statements |
| C. | Financial numerical information |
| D. | All of the above |
| Answer» E. | |
| 286. |
Present value of inflows Rs. 10 lakhs from a project and initial investment is Rs. 7.5lakhs. The NPV is: |
| A. | Rs. 17.5 lakhs |
| B. | Rs. 7.5 lakhs |
| C. | Rs. 10 Lakhs |
| D. | Rs. 2.5 lakhs |
| Answer» E. | |
| 287. |
Equity shares of phonex Ltd are quoted in the market at Rs17. The dividend expected ayear hence is Rs1.50. The expected rate of dividend growth is 8%. The cost of equity capital to the company is |
| A. | 11.08% |
| B. | 13.88% |
| C. | 15.46% |
| D. | 16.82% |
| Answer» E. | |
| 288. |
The excess of Current Assets over Current Liabilities is called: |
| A. | Net Current Assets |
| B. | Net Working Capital |
| C. | Working Capital |
| D. | All of the above |
| Answer» E. | |
| 289. |
Which of the following forms of equity financing is especially designed for fundingHigh Risk & High Reward projects? |
| A. | ADR |
| B. | GDR |
| C. | FCCB |
| D. | Venture Capital |
| Answer» E. | |
| 290. |
Which of the following g is a determinant of working capital of a firm? |
| A. | Depreciation policy |
| B. | Taxes payable by the company |
| C. | Production policy |
| D. | All of the above |
| Answer» E. | |
| 291. |
LIBOR is a term of ------------- |
| A. | Capital market |
| B. | Accounting |
| C. | Common market |
| D. | International Financial Market |
| Answer» E. | |
| 292. |
If the present value of cash in flows from a project is Rs4.50 crore, initial outlay is Rs3.75crore then the net benefit cost ratio is |
| A. | 0.17 |
| B. | 0.20 |
| C. | 0.75 |
| D. | 0.83 |
| Answer» C. 0.75 | |
| 293. |
Which one of the following is a medium term source? |
| A. | Public Deposits |
| B. | Lease Financing |
| C. | Euro Debt Issue |
| D. | All of the above |
| Answer» E. | |
| 294. |
“Shareholders Wealth” in a firm is reflected by: |
| A. | the number of people employed in the firm |
| B. | the book value of the firm’s assets less the book value of its liabilities |
| C. | the amount of salary paid to its employees |
| D. | the market price per share of the firm |
| Answer» E. | |
| 295. |
The cost of debt capital is the ratio of interest payable on --------- |
| A. | Debenture |
| B. | Equity share capital |
| C. | Preference share capital |
| D. | Retained earning |
| Answer» B. Equity share capital | |
| 296. |
Which of the following statement is true according to traditional approach of capitalstructure? |
| A. | Cost of capital increases with the use of debt after a certain amount of debt and later falls |
| B. | Cost of equity and debt more or less remains constant with the use of debt up to a certain amount of debt |
| C. | Cost of declines and cost of debt remains constant with increase in debt. |
| D. | Cost of equity declines and cost of debt increases with increase in debt |
| Answer» C. Cost of declines and cost of debt remains constant with increase in debt. | |
| 297. |
Financial decision involve |
| A. | Investment, financing and dividend decisions |
| B. | Investment, financing and sales decisions |
| C. | Financing, dividend and cash decisions |
| D. | None of the above |
| Answer» B. Investment, financing and sales decisions | |
| 298. |
The term value implies the ------------ |
| A. | Task of estimating the worth of an asset |
| B. | Task of estimating the worth of a security |
| C. | Task of estimating the value of a business |
| D. | All of these |
| Answer» E. | |
| 299. |
Preference shares are those shares whose holders have ------------- |
| A. | Certain common rights |
| B. | Certain preferential Rights |
| C. | Return on capital ownership on shares |
| D. | Return on capital |
| Answer» C. Return on capital ownership on shares | |
| 300. |
Determinants of credit policy relates to: |
| A. | Credit standards |
| B. | Credit terms |
| C. | Collection Procedures |
| D. | All of the above |
| Answer» E. | |