SCDL Assignment Financial Management - 67

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

 

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Select The Blank
Question	________ in liabilities involves outflow of funds
Answer	Decrease
Multiple Choice Single Answer
Question	The Investment decisions are mainly concerned with
Answer	Application of funds
Multiple Choice Multiple Answer
Question	The following techniques can be used to delay cash payments
Answer	Payments can be made from a bank which is distant from the bank of the company to which payment is to be made , Attempts should be made by the company to get the maximum credit for the goods or service supplied , Avoid early payments
Select The Blank
Question	Till the sales revenue reaches the break even point, the company ________
Answer	incurs the losses
Select The Blank
Question	Preparation of Financial plan at the time of company promotion is ________ duty of the finance executive
Answer	Non-recurring
Multiple Choice Single Answer
Question	The ratio which indicates the extent to which the Owners' funds are sunk in different kinds of assets is termed as
Answer	Proprietary ratio
Select The Blank
Question	________ is the summary of cash book or Receipts and Payments Statement
Answer	Cash flow statement
True/False
Question	Retained earnings or ploughed back profits is one of the best source of raising long term funds for the company
Answer	True
True/False
Question	When a company issues bonus shares, reserves of the company get reduced and share capital of the company increases
Answer	True
Multiple Choice Multiple Answer
Question	Top management who can accept or reject capital expenditure proposals may be in the form of
Answer	Board of Directors, Executive committee, Management committee
Multiple Choice Multiple Answer
Question	The approaches to compute the cost of equity shares are
Answer	Dividend / Price Approach, Realized Yield Approach , Earnings / Price Approach
True/False
Question	Introduction of a heavy amount of debt capital in the capital structure will not only reduce the valuation of the firm but will also increase the cost of capital
Answer	True
True/False
Question	Before the company can pay the dividend on Equity shares; it is bound to pay the dividend on Preference shares
Answer	True
Match The Following
Question	Answer
Term loan	represents a source of debt finance which is generally repayable in more than one year but less than ten years
Lessee	Not able to claim depreciation on asset
Hirer	Claims the depreciation on the asset
Retained earnings	Residue left behind from earnings available to equity shareholders after the payment of annual dividend
Multiple Choice Multiple Answer
Question	Uses of financial leverage are
Answer	It acts as a guideline in setting maximum limit upto which the company should use the debt capital , It gives an indication regarding the extent to which Earning per share may be affected due to every change in Earnings before Interest and tax

 

 

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