SCDL Assignment Financial Management - 70

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

 

Thanks: XYZ

 

 

Multiple Choice Single Answer
Question	Increase in the amount of bills payable results in
Answer	Increase in cash
Multiple Choice Single Answer
Question	The assets held by a business which can be converted in the form of cash or used during the course of normal operations is termed as
Answer	Current assets
True/False
Question	Inadequate provision for depreciation may be the cause of overcapitalisation
Answer	TRUE
Select The Blank
Question	Factoring indicates the relationship between ________ and a business organisation
Answer	Financial institutions
True/False
Question	Inadequate provision for depreciation may be the cause of overcapitalisation
Answer	TRUE
Multiple Choice Multiple Answer
Question	Gross Profit can be increased by either
Answer	Reduced Production cost, sales price remaining the same , Increased Sales price, Reduced Production cost , Increased Sales price, Production cost remaining the same
Multiple Choice Multiple Answer
Question	Limitations of cash flow analysis are
Answer	It cannot be equated with the income statement , Cannot replace the fund flow statement , Dose not represent real liquid position
Multiple Choice Multiple Answer
Question	Disadvantages of factoring are
Answer	The financial burden on the company increases , It may be considered to be a symptom of financial weakness on the part of the selling company , In Indian circumstances, factoring is mainly with-recourse factoring. The risk of non-payment on the part of customer is borne by the selling firm. This restricts its popularity
True/False
Question	In calculating funds from operations non-business expenses like dividends paid etc. as well as non cash expenses like depreciation etc. are added back in the net profits shown by the Profit & Loss Account
Answer	TRUE

 

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