Financial Management MCQ

Financial Management MCQ

  • Sharad Jaiswal
  • 16th Jun, 2021

We have listed below the best Financial Management MCQ Questions for your basic knowledge of Financial Management. This Financial Management MCQ Test contains 25+ Financial Management Multiple Choice Questions. You have to select the right answer to every question.

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Practice Best Financial Management MCQ Questions

1) ________is the limitation of Traditional approach of Financial Management.

  • A. One-sided approach
  • B.Ignores allocation of resources
  • C.More emphasis on long term problems
  • D.All of the above

2) Financial management process deals with

  • A. Investments
  • B.Financing decisions
  • C.Assets
  • D.None of the above

3) Cost of retained earnings is equal to:

  • A. return on existing common stock
  • B.return on preferred stock
  • C.return on new common stock
  • D.All of the above

4) The Primary goal of financial management?

  • A. raise profit
  • B.minimize the risk
  • C.maximize the return
  • D.maximize the owner’s wealth

5) The cost of debt capital is calculated on the basis:

  • A. Capital
  • B.Annual Interest
  • C.Annual Depreciation
  • D.Net proceeds

6) Dividend Payout Ratio is_______

  • A. DPS ÷ EPS
  • B.PAT÷ Capital
  • C.Pref. Dividend ÷ PAT
  • D.Pref. Dividend ÷ Equity Dividend

7) Financial management mainly focuses on_______.

  • A. Brand dimension
  • B.Arrangement of funds
  • C.Efficient management of every business
  • D.Elements of acquiring and using means of financial resources

8) Which of the following is not a financial investment.

  • A. Reduced expenses.
  • B.Marketable
  • C.Manage portfolios
  • D.Pooled investments.

9) A Capital investment is one that_______

  • A. has the prospect of long-term benefits.
  • B.has the prospect of short-term benefits.
  • C.is only undertaken by large corporations
  • D.applies only to investment in fixed assets

10) Heterogeneous cash flows can be made comparable by

  • A. Discounting technique
  • B.Compounding technique
  • C.Dimension technique
  • D.Both A & B

11) Which of the following is the goal of financial management.

  • A. the wealth of Debenture holders
  • B.the wealth of Preference Shareholders
  • C.the wealth of Equity shareholders
  • D.None of the above

12) Which of the following is capital employed?

  • A. Cash + Bank
  • B.Assets + Cash
  • C.Shareholders Funds + Long Funds
  • D.Both A & B

13) Which is the limitation of Traditional approach of Financial Management?

  • A. One-sided approach
  • B.Ignores allocation of resources
  • C.More emphasis on long term problems
  • D.All of the above

14) Factoring involves______

  • A. Sales ledger management
  • B.credit investigation
  • C.Sales ledger management
  • D.All of the above

15) Which form of financing in reserve and surplus are:

  • A. Loans Financing
  • B.Internal Financing
  • C.Security Financing
  • D.International Financing

16) Financial management process deals with

  • A. Financing decisions
  • B.Funds
  • C.Investments
  • D.All of the above

17) What is factoring?

  • A. Cost of Sales
  • B.Production Plan
  • C.New Financial Service
  • D.None of the above

18) Current assets are also referred to as:

  • A. Inventory
  • B.Livestock
  • C.Investments
  • D.Working capital

19) Ke = DPS/MP x 100, is used for______

  • A. Depreciation
  • B.Reserve
  • C.capital structure
  • D.Equity Share Capital

20) Networking capital means:

  • A. current assets minus current liabilities
  • B.current assets minus inventories
  • C.total assets minus fixed assets.
  • D.current assets.

21) Long period of Bond maturity lends to:

  • A. Stable Prices
  • B.Mature Prices
  • C.Standing Prices
  • D.More Price change

22) The market value of the shares is decided by

  • A. government
  • B.shareholders
  • C.investment market
  • D.respective companies

23) Company cost of capital is called_______

  • A. Risk rate
  • B.Hurdle rate
  • C.Leverage
  • D.Return rate

24) Beta is measures the_______

  • A. Market risk
  • B.Financial risk
  • C.Investment risk rate
  • D.Market and finance risk

25) In Walter model formula D stands for:

  • A. Direct earnings
  • B.Dividend per share
  • C.Direct dividend.
  • D.Debentures.

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