Online MCQ Assignment Answer
QN1: Dividend has no relationship with the value of the firm as per Walter Model.
a. Yes
b. No
c. Can’t say
d. Sometimes
Answer
Answer: a. Yes
QN2: Wealth management and profit maximisation are the ___ concepts.
a. Yes
b. Sometimes
c. No
d. Can’t say
Answer
Answer: d. Can’t say
QN3: Traditionally the role of finance manager was restricted to ___ of funds.
a. Use
b. Procurement
c. Management
d. Administration
Answer
Answer: b. Procurement
QN4: The sales of a business or other form of revenue from operations of the business is called as___.
a. Profit
b. Margin
c. Contribution
d. Turnover
Answer
Answer: d. Turnover
QN5: Implicit cost is the cost of using the funds.
a. TRUE
b. FALSE
c. None
d. Sometimes False
Answer
Answer: d. Sometimes False
QN6: The process of calculating present value of projected cash flows.
a. Discounting
b. Brokerage
c. Benefit
d. Budgeting
Answer
Answer: a. Discounting
QN7: A part of the organisation where the manager has responsibility for generating revenues, controlling costs and producing a satisfactory return on capital invested in the division.
a. Brekarage
b. Brokerage
c. Division
d. Recasting
Answer
Answer: c. Division
QN8: Business practices designed by companies to make production and delivery systems more competitive in world markets by eliminating or minimizing waste, errors, and costs.
a. Reengineering
b. Restructuring
c. Revaluation
d. Recasting
Answer
Answer: a. Reengineering
QN9: Cash in hand and cash at bank are examples of … Assets.
a. Current
b. Fixed
c. Working
d. Permanent
Answer
Answer: a. Current
QN10: Baumol model and the Miller-Orr model belong to … Management.
a. Cash
b. Credit
c. Inventory
d. Purchase
Answer
Answer: a. Cash
QN11: Current assets /Current liabilities describes … Ratio.
a. Fixed Asset
b. Quick
c. Liquidity
d. Asset Turnover
Answer
Answer: b. Quick
QN12: Inventory and receivables are both current assets.
a. FALSE
b. Can’t Say
c. Sometimes
d. TRUE
Answer
Answer: d. TRUE
QN13: Credit analysis, or the assessment of creditworthiness, is undertaken by analysing and evaluating information relating to a customer’s … history?
a. Non-Financial
b. Non-Monetary
c. Financial
d. Monetary
Answer
Answer: c. Financial
QN14: The objective of liquidity ensures that companies are able to meet their liabilities as they fall due, and thus remain in business.
a. Rare
b. TRUE
c. Sometimes
d. FALSE
Answer
Answer: b. TRUE
QN15: Funds held in the form of cash do not earn a return.
a. TRUE
b. Sometimes
c. FALSE
d. Rare
Answer
Answer: a. TRUE
QN16: Holding costs can be … by reducing the level of inventory held by a company.
a. minimised
b. control
c. increased
d. reduced
Answer
Answer: d. reduced
QN17: Which technique brings inventory and cash requirment drastically down?
a. LIFO
b. Baumal
c. ABC
d. JIT
Answer
Answer: b. Baumal
QN18: Which model belongs to cash management?
a. LIFO
b. Miller Orr
c. HIFO
d. ABC
Answer
Answer: b. Miller Orr
QN19: JIT stands for just in … .
a. totality
b. technical
c. tenure
d. time
Answer
Answer: d. time
QN20: The factors to be considered in formulating a trade receivables policy relate to credit analysis, credit control and receivables collection.
a. TRUE
b. Sometimes
c. Rare
d. FALSE
Answer
Answer: a. TRUE
QN21: Companies with the same business operations may have … levels of investment in working capital as a result of adopting different working capital policies.
a. lower
b. higher
c. different
d. Same
Answer
Answer: c. different
QN22: Receibles management is all about?
a. Cash Management
b. Loan Management
c. Credit Management
d. All
Answer
Answer: d. All
QN23: The main reason that companies fail, though, is because they run out of … .
a. Customers
b. Inventory
c. Cash
d. Stock
Answer
Answer: c. Cash
QN24: Is it right to say that good cash management is an essential part of good working capital management.
a. Sometimes
b. never
c. Always
d. Can’t say
Answer
Answer: c. Always
QN25: Optimum cash balance must reflect the expected need for cash in the next budget period.
a. never
b. Always
c. Can’t say
d. Sometimes
Answer
Answer: b. Always
QN26: The cash operating cycle is the average … of time between paying trade payables and receiving cash from trade receivables.
a. Lag
b. period
c. length
d. gap
Answer
Answer: c. length
QN27: The length of the cash … depends on working capital policy in relation to the level of investment in working capital, and on the nature of the business operations of a company.
a. requirement
b. Operating Cycle
c. disbursal
d. Management
Answer
Answer: b. Operating Cycle
QN28: Liquid funds, for example cash, earn no return and so will not increase profitability.
a. TRUE
b. FALSE
c. rare
d. Sometimes
Answer
Answer: a. TRUE
QN29: ___are your business’ “scores” that come from your Income Statement and Balance Sheet, not the Cash Flow Statement.
a. Marks
b. Financial Scores
c. Points
d. Ratios
Answer
Answer: d. Ratios
QN30: Working capital investment policy is concerned with the level of investment in … assets, with one company being compared with another.
a. Permanent
b. Temporary
c. Current
d. Fixed
Answer
Answer: c. Current
QN31: ___can also be used to cover some of the risks associated with giving credit to foreign customers.
a. Locking
b. Awards
c. Insurance
d. Rewards
Answer
Answer: c. Insurance
QN32: Aggressive working capital finance means using more … term finance
a. Credit
b. Short
c. Medium
d. Long
Answer
Answer: b. Short
QN33: Short-term finance is more flexible than long-term finance.
a. TRUE
b. FALSE
c. Never
d. Sometimes
Answer
Answer: a. TRUE
QN34: Short-term finance tends to be more … than long-term finance.
a. Softer
b. Rigid
c. Flexible
d. harder
Answer
Answer: c. Flexible
QN35: Sales made but not collected is known as…?
a. A/Cs Payables
b. A/Cs Receivables
c. Both
d. None
Answer
Answer: b. A/Cs Receivables
QN36: ___Interest rate depends upon an index and increases or decreases.
a. Stationary
b. Variable
c. Stable
d. Fixed
Answer
Answer: b. Variable
QN37: Short-term finance is more risky than long-term finance.
a. FALSE
b. Never
c. Sometimes
d. TRUE
Answer
Answer: d. TRUE
QN38: Rate risk refers to the fact that when short-term finance is renewed, the rates may vary when compared to the … rate.
a. Current
b. Previous
c. Accounting
d. Industry
Answer
Answer: b. Previous
QN39: The … principle suggests that long-term finance should be used for long-term investment.
a. Matching
b. Traditional
c. Dual Aspect
d. Monetary
Answer
Answer: a. Matching
QN40: Money paid (cost of credit) for the use of money.
a. Interest
b. Dividend
c. Usage Money
d. Principal
Answer
Answer: a. Interest
