SCDL Assignment Financial Management - 73

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Multiple Choice Single Answer
Question	The traditional approach to financial management refers only to the procurement of funds by
Answer	Corporate entity
Select The Blank
Question	The basic objective of ________ management is to reduce the operating cash requirement to the minimum possible extent without affecting the routine transactions.
Answer	Cash
True/False
Question	The cost of the factor is slightly higher than the interest which the client would have paid had he borrowed the funds from the Bank
Answer	TRUE
Select The Blank
Question	________ in assets involves inflow of funds
Answer	Decrease
Select The Blank
Question	Liquidity ratios indicate the ________ position of the organisation
Answer	Short term
Match The Following
Question	Answer
Undue increase in Gross Profit ratio	Over-valuation of closing stock
Undue decrease in Gross Profit ratio	Under-valuation of closing stock
Gross Profit ratio	Indicates the relation between production cost and Sales
Net Profit ratio	Indicates that portion of sales available to the owners after consideration of all types of expenses and cost
Multiple Choice Single Answer
Question	Technical terminology used to invest in the current assets being
Answer	Working Capital Management
True/False
Question	Reorder level is calculated as Maximum Lead Time * Minimum Usage
Answer	FALSE
Multiple Choice Single Answer
Question	The company can raise the funds in the form of Public deposits which can be used
Answer	For any purpose
True/False
Question	Fixed Assets turnover ratio is the relationship between fixed assets and owner's funds
Answer	FALSE
Multiple Choice Single Answer
Question	Live Stock is an example of
Answer	Fixed Asset
Multiple Choice Single Answer
Question	The Policy which attracts the shareholders who are willing to devote short term dividend income for long term capital gains and share in the increased prosperity of the company is termed as
Answer	No immediate Dividend policy
Multiple Choice Multiple Answer
Question	Assuming the current ratio is 2, in which cases would the current ratio decline
Answer	Purchase of fixed Assets , Borrow Money on an Interest bearing promissory note
Select The Blank
Question	In ABC analysis C class consist of ________.
Answer	a very large number of items which are less important
Select The Blank
Question	Retained earnings is a source of ________ finance
Answer	Internal
True/False
Question	The assumptions of capital structure theories is that Operating earnings are not expected to grow
Answer	TRUE
Select The Blank
Question	Under ________, it is not only necessary to decide profitable investments but also necessary to rank the acceptable proposals according to their relative profitabilities
Answer	Capital rationing
Multiple Choice Multiple Answer
Question	The recurring duties of Finance Executive includes
Answer	Working Capital Management , Fixed Assets management , Control of funds
Multiple Choice Single Answer
Question	The effect of Purchase of building against a long term loan payable on funds ( cash concept ) is
Answer	No change in cash
Multiple Choice Multiple Answer
Question	The classification of ratios under miscellaneous group includes
Answer	Earnings per share , Dividend Payment ratio

 

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