MCQ on Financial Management 5

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Objective Questions and Answers of MBA: MCQ on Financial Management 5

Subject: MCQ on Financial Management 5

Part 5: List for questions and answers of Financial Management

 

Q1. Cash flow statement is based upon _________ while Funds Flow Statement recognizes ______

a) Cash basis of accounting, accrual basis of accounting

b) Accrual basis of accounting, cash basis of accounting

c) Both are based on cash basis of accounting

d) None of the above

 

Q2. Statement of changes in working capital is prepared separately in

a) Cash Flow Statement

b) Funds Flow Statement

c) Both a and b

d) None of the above

 

Q3. Cash Flow Statement studies causes of change in working capital

a) True

b) False

 

Q4. _________ reconciles the opening cash balance with the closing cash balance of a given period on the basis of net decrease or increase in cash during that period

a) Cash Flow Statement

b) Funds Flow Statement

c) Both a and b

d) None of the above

 

Q5. _____ has/have accepted cash flow statement is more useful than funds flow statement, particularly from view of analysis of liquidity of a firm

a) Institute Of Chartered Accountants of India

b) FASB, America

c) SEBI

d) All of the above

 

Q6. Cash Flow Statement is prepared from

a) Profit and loss account

b) Balance Sheet

c) Additional Information

d) All of the above 

 

Q7. Cash payment to suppliers for services and goods is example of cash outflow

a) True

b) False

 

Q8. For the calculation of cash flow from operating activities, payments and receipts shown in Profit and Loss account are converted into payments and receipts actually in cash

a) True

b) False

 

Q9. For the calculation of cash flow from operating activities, payments and receipts shown in Profit and Loss account are converted into payments and receipts actually in cash by eliminating

a) Non-cash revenue from the revenue earned

b) Non-cash expenses from expenses incurred

c) Both a AND b

d) None of the above

 

Q10. While preparing Cash Flow Statement, non-cash items and non-operating items are not required to be adjusted under________

a) Indirect method

b) Direct method

c) Both a and b

d) None of the above

 

Q11. Cash flow from sales is calculated by

a) Cash sales + Cash Collections

b) Sales + Opening debtors+ Opening B/R –Closing Debtors – Closing B/R

c) Both a and b

d) None of the above

 

Q12. Cash outflow on purchases is calculated by

a) Purchases + Opening Creditors + Opening B/P –Closing Creditors-Closing B/P

b) Purchases + Opening Creditors – Closing Creditors +Closing B/P

c) Purchases – Opening Creditors – Opening B/P + Closing Creditors +Closing B/P

d) None of the above 

 

Q13. The amount of operating expenses which are actually been paid in cash are shown under

a) Cash flow from sales

b) Cash outflow on purchases

c) Cash outflow on expenses

d) All of above are false

 

Q14. Given salary expenses Rs 40,000, Outstanding in the beginning of the year: Rs 5,000 and outstanding at the end of the year Rs 10,000. Cash outflow on salary will be

a) Rs 45,000

b) Rs 35000

c) Rs 55,000

d) Rs 15,000

 

Q15. In indirect method, net cash flow from operating activities is calculated on the basis of

a) Net Profit after tax

b) Net profit before tax

c) Both and b

d) None of the above

 

Q16. The concept of SBU includes

a) Unrelated products and businesses that are separated

b) The fact that each SBU has its own CEO

c) A scientific method of grouping the business

d) All of the above

 

Q17. Learning organizations are adaptive to their________environment.

a) Internal

b) External

c) None of the above

 

Q18. The non-financial type of motivators would be

a) Encouragement

b) Freedom

c) Recognition

d) All of the above 

 

Q19. Who is the father of the three-needs theory?

a) Vroom

b) McClelland

c) Peter Drucker

d) None of the above

 

Q20. Acquisition and disposal of long term assets is included in

a) Cash flow from investing activities

b) Cash flow from financing activities

c) Cash flow from operating activities

d) None of the above

 

Part 5: List for questions and answers of Financial Management

 

Q1. Answer: a

Q2. Answer: b

Q3. Answer: b

Q4. Answer: a

Q5. Answer: d

Q6. Answer: d

Q7. Answer: b

Q8. Answer: a

Q9. Answer: c

Q10. Answer: b

Q11. Answer: c

Q12. Answer: a

Q13. Answer: c

Q14. Answer: b

Q15. Answer: b

Q16. Answer: d

Q17. Answer: b

Q18. Answer: d

Q19. Answer: b

Q20. Answer: a