SCDL Assignment Financial Management - 72

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

 

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True/False
Question	Credit rating is not a recommendation for buying, selling or holding a security
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
True/False
Question	Semi-variable cost is the cost which varies in direct proportion to the sales revenue
Answer	FALSE
Multiple Choice Single Answer
Question	The rate at which an organisation must pay to the suppliers of capital for the use of their funds is termed as
Answer	cost of capital
True/False
Question	A high degree of operating leverage means that the component of fixed cost is too high in the overall cost structure
Answer	TRUE
Select The Blank
Question	________ of the company should authorise the company to buy back its own shares
Answer	Articles of Association
Multiple Choice Single Answer
Question	Tax paid is
Answer	Application of funds
Multiple Choice Multiple Answer
Question	The factor may provide the following services to the client
Answer	It may undertake the credit analysis of the customers of the client , It will undertake the various book-keeping and accounting activities in relation to the receivables management , It undertakes the responsibility of following up with the customers for the purpose of making the collection from the customer
Multiple Choice Multiple Answer
Question	Packing credit facility can take the following form
Answer	Pre-shipment Packing credit , Post-shipment Packing credit
Select The Blank
Question	One of the tools available to the company to ensure the maintenance of ________ cash balance is to prepare cash budget
Answer	Optimum
Select The Blank
Question	The comparison of the ratios of one organisation with that of the other organisation is termed as ________ comparison
Answer	Inter-firm
Multiple Choice Single Answer
Question	Financing consists of the raising, providing, managing of all the money, capital or funds of any kind to be used in connection with the business' is defined by
Answer	Bonneville and Dewey
Multiple Choice Multiple Answer
Question	The importance of various items of inventory may be decided on the following factors
Answer	Amount of investment in inventory , Value of material consumption , Critical nature of inventory items
Multiple Choice Single Answer
Question	A decrease in current assets
Answer	decreases working capital
Multiple Choice Single Answer
Question	The proxy is
Answer	a person appointed by the equity shareholder to attend the annual general meeting in his absence and can vote in the meeting

 

 

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