Accounting and Financial Management 27

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Objective Questions and Answers of MBA: Accounting and Financial Management 27

Subject: Objective Questions and Answers of MBA: Accounting and Financial Management 27

Part 27: Objective questions and answers of Accounting and Financial Management

 

Q1. The real cashflows must be discounted to get the present value at a rate equal to:

a) Money discount rate

b) Inflation rate

c) Real discount rate

d) Risk free rate of interest

 

Q2. Npv of a proposal, as calculated by RADR real ce approach will be:

a) Same

b) Unequal

c) Both (a) and

d) (d) none of (a) and (b)

 

Q3. In order to calculate weighted average cost of weights may be based on:

a) Market values

b) Target values

c) Book values

d) All of the above

 

Q4. Which of the following is not a generally accepted approach for calculation of cost of equity?

a) Capm

b) Dividend discount model

c) Rate of pref. Dividend plus risk

d) Price-earnings ratio

 

Q5. Relationship between change in sales and change m is measured by:

a) Financial leverage

b) Combined leverage

c) Operating leverage

d) None of the above

 

Q6. At indifference level of ebit, different capital has

a) Same ebit

b) Same eps

c) Same pat

d) Same pbt

 

Q7. In mm-model, irrelevance of capital structure is based on:

a) Cost of debt and equity

b) Arbitrage process

c) Decreasing k0

d) All of the above

 

Q8. If a firm has ke > r the walter's model suggests for

a) 0% payout

b) 100% payout

c) 50% payout

d) 25% payout

 

Q9. Shares of face value of 10 are 80% paid up. The company declares a dividend of 50%.

Amount of dividend per share is

a) 5

b) 4

c) 80

d) 50

 

Q10. Difference between between the bank balance as per cash book and pass book may be due to:

a) Overdraft

b) Float

c) Factoring

d) None of the above

 

Q11. Which is not a service of a factor?

a) Administrating sales ledger

b) Advancing against credit sales

c) Assuming bad debt losses

d) None of the above

 

Q12. If no information is available, the general rule for valuation of stock for balance sheet is

a) Replacement cost

b) Realizable value

c) Historical cost

d) Standard cost

 

Q13. The type of collateral (security) used for short-term loan is

a) Real estate

b) Plant & machinery

c) Stock of good

d) Equity share capital

 

Q14. Which of the following is not a usual type of lease arrangement?

a) Sale & leaseback

b) Goods on approval

c) Leverage lease

d) Direct lease

 

Q15. Dividend payout ratio is:

a) Pat capital

b) Dps ÷ eps

c) Pref. Dividend ÷ pat

d) Pref. Dividend ÷ equity dividend

 

Q16. Process of financial planning ends with:

a) Preparation of projected statements

b) Preparation of actual statements

c) Comparison of actual with projected

d) Ordering the employees that projected figures m come true

 

Q17. Which of the following is not followed in capital budgeting?

a) Cash flows principle

b) Interest exclusion principle

c) Accrual principle

d) Post-tax principle

 

Q18. Feasibility set approach to capital rationing can be applied in:

a) Accept-reject situations

b) Divisible projects

c) Mutually exclusive projects

d) None of the above

 

Q19. Risk in capital budgeting implies that the decision-maker knows ________________ of the cash flows.

a) Variability

b) Probability

c) Certainty

d) None of the above

 

Q20. Which of the following has the highest cost of capital?

a) Equity shares

b) Loans

c) Bonds

d) Preference shares

 

Part 27: Objective questions and answers of Accounting and Financial Management

 

Q1. Answer c

 

Q2. Answer b

 

Q3. Answer d

 

Q4. Answer c

 

Q5. Answer b

 

Q6. Answer b

 

Q7. Answer b

 

Q8. Answer a

 

Q9. Answer b

 

Q10. Answer b

 

Q11. Answer d

 

Q12. Answer c

 

Q13. Answer c

 

Q14. Answer b

 

Q15. Answer b

 

Q16. Answer c

 

Q17. Answer c

 

Q18. Answer a

 

Q19. Answer b

 

Q20. Answer a

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