SCDL Assignment Financial Management - 57

This solved paper of Financial Management of SCDL Pune has been contributed by XYZ

Select The Blank
Question Break even point is that level of sales revenue at which there is ________
Correct Answer no profit no loss

Select The Blank
Question Financial Institution plays the role of ________ in factoring service offered
Correct Answer Factor

True/False
Question Under hypothetical mode of security neither the property not the possession of the goods hypothetical is transferred to the Bank
Correct Answer True

True/False
Question The lessor is the nominal owner of the asset as the possession and economic use of the asset rests with the lessee
Correct Answer True

Multiple Choice Single Answer
Question Composite cost is calculated as
Correct Answer Total weighted cost / Total weights

True/False
Question Cash flow statement is important financial tool for the management
Correct Answer True

Select The Blank
Question In ABC analysis C class consist of ________.
Correct Answer a very large number of items which are less important

Multiple Choice Single Answer
Question The technique which tries to find out the present value of Re 1 if received or spent after n years, provided that the interest rate of I can be earned on investment is termed as
Correct Answer Discounting

Multiple Choice Multiple Answer
Question The committees appointed by the Reserve Bank of India to control the working capital financing
Correct Answer Tandon committee , Marathe committee , Nayak committee

Multiple Choice Multiple Answer
Question The patterns of Dividend policy are
Correct Answer Stable Dividend policy , Irregular Dividend policy , No immediate Dividend policy

True/False
Question A high degree of operating leverage means that the component of fixed cost is too high in the overall cost structure
Correct Answer True

Multiple Choice Single Answer
Question An increase in the share premium account is
Correct Answer Source of funds

True/False
Question ordering cost of inventory includes cost incurred for insurance
Correct Answer False

Multiple Choice Single Answer
Question The effect of Purchase of building against a long term loan payable on funds ( cash concept ) is
Correct Answer No change in cash

Multiple Choice Single Answer
Question Which of the following assets get generated during course of operations or get utilized within one year
Correct Answer Current assets

Match The Following
Question                      Correct Answer
Mortgage                       Mode of security pertains to immovable properties like land and building
Hypothecation                Neither the property not the possession of the goods is transferred to the bank
Pledge                           Possession of the goods is with the bank
Lien                              Bank has a right to retain the goods belonging to the company until the debt due to the bank is paid

Match The Following
Question                                                                      Correct Answer
Internal rate of return less than cost of capital                  Project rejected
Internal rate of return                                                     breakeven rate of borrowing for the company
Profitability Index ratio                                                   between total discounted cash inflows and total discounted cash outflows ratio
Profitability Index more than one                                     Project accepted

Multiple Choice Multiple Answer
Question The recommendations of the Dahejia committee included
Correct Answer the banks should not only be security oriented but they should take into consideration total financial position of the client , all cash credit accounts with banks should be bifurcated in two categories

True/False
Question Re-order level is the highest level of inventory to be maintained above which the inventory should not rise
Correct Answer False

Multiple Choice Single Answer
Question The objective of Working Capital management is to ensure
Correct Answer Optimum investment in current assets

Multiple Choice Single Answer
Question An increase in current liabilities
Correct Answer decreases working capital

True/False
Question Net Present value presupposes that the cash inflows can be reinvested to yield the return equivalent to the Internal rate of return
Correct Answer False

Multiple Choice Multiple Answer

 Question The causes of undercapitalization are
Correct Answer
Future earnings may be underestimated , Company following too conservative policy for paying the dividends

Select The Blank Question
Subscription list of a public issue of shares shall be kept open for minimum ________ working days
Correct Answer 3

Note: Please tally the answers and verify them from SCDL textbooks as all answers might not be correct.