MCQ on Financial Management 6

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Objective Questions and Answers of MBA: MCQ on Financial Management 6

Subject: MCQ on Financial Management 6

Part 6: List for questions and answers of Financial Management

 

Q1. Which of the following statements represent example of cash flow from investing activities?

a) Cash advances and loans made by financial enterprises

b) Cash advances and loans made to third parties

c) Both a and b

d) None of the above

 

Q2. ABC Ltd had investment of Rs 68,000 as on 31.3.2013 and investment of Rs 56,000 as on 31.3.2014. During the year ABC Ltd sold 40% of its investments being held in the beginning of period at a profit of Rs 16,800. Determine cash flow from investing activities

a) Rs 59,200

b) Rs 28,800

c) Rs 72,800

d) None of the above

 

Q3. Financing activities brings changes in

a) Size and composition of owner’s equities

b) Borrowing of the enterprise

c) Both a and b

d) None of the above

 

Q4. For year 2013 Equity Share Capital is Rs 3,00,000 Preference Share Capital is 1,00,000 10% debentures is 2,00,000 and Share premium is 30,000. For year 2014 Equity Share Capital is Rs 4,00,000 Preference Share Capital is 60,000 10% debentures is 1,00,000 and Share premium is 40,000. Also given, Dividend paid on shares Rs 15,000 and Interest paid on debentures RS 20,000. Determine net cash flow from financing activities

a) Cash inflow of Rs 65,000

b) Cash outflow of Rs 65,000

c) Cash inflow of Rs 56,000

d) Cash outflow of Rs 56,000

 

Q5. Fixed expenses decrease per unit with the increases in production and increases per unit with the decrease in production

a) True

b) False

 

Q6. Marginal costs is taken as equal to

a) Prime Cost plus all variable overheads

b) Prime Cost minus all variable overheads

c) Variable overheads

d) None of the above

 

Q7. If total cost of 100 units is Rs 5000 and those of 101 units is Rs 5030 then increase of Rs 30 in total cost is

a) Marginal cost

b) Prime cost

c) All variable overheads

d) None of the above

 

Q8. Marginal cost is computed as

a) Prime cost + All Variable overheads

b) Direct material + Direct labor + Direct Expenses + All variable overheads

c) Total costs – All fixed overheads

d) All of the above

 

Q9. Marginal costing is also known as

a) Direct costing

b) Variable costing

c) Both a and b

d) None of the above

 

Q10. While computation of profit in marginal costing

a) Total marginal cost is deducted from total sales revenues

b) Total marginal cost is added to total sales revenues

c) Fixed cost is added to contribution

d) None of the above

 

Q11. In two periods total costs amounts to Rs 50000 and Rs 40000 against production of 20000 and 15000 units respectively. Determine marginal cost per unit and fixed cost

a) Rs 2 and Rs 10,000

b) Rs 4 and Rs 5000

c) Rs 10 and Rs 8000

d) None of the above 

 

Q12. Under High and Low Point method, the output at two different levels is compared with the amount of __________ incurred at these two points

a) Total fixed costs

b) Total costs

c) Total fixed costs

d) None of the above

 

Q13. Given Maximum value of production and minimum value of production is 10,000 and 5000 units respectively. Maximum total cost is RS 25,000 and minimum total cost is Rs 15,000. Determine total fixed cost and per unit marginal cost

a) Rs 2 per unit, Rs 5,000

b) Rs 5 per unit, Rs 2000

c) Rs 10 per unit, Rs 10,000

d) None of the above

 

Q14. Under method of least squares, a linear equation is developed in the form of ______ wherein Y is total cost, a=fixed cost, b= marginal cost and X is output

a) Y=a+bX

b) Y=a-bX

c) Y=a*bX

d) None of the above

 

Q15. In Analytical method of calculating marginal costing, it is determined on the basis of past records

a) True

b) False

 

Q16. When contribution is positive but equal to fixed cost

a) There is loss equal to fixed costs

b) There is loss more than fixed costs

c) There will be loss less than fixed costs

d) There will be neither profit not loss

 

Q17. Opportunities to achieve further growth within current businesses are

a) Intensive Opportunities

b) Integrative Opportunities

c) Diversification Opportunities

d) None of the above 

 

Q18. Human Resource divisions and components in firms are usually liable for a number of deeds, including employee

a) recruitment

b) training

c) development

d) all of answers Xare correct

 

Q19. Phrase procurement stands for

a) recruitment and selection

b) training and development

c) pay and benefits

d) health and safety

 

Q20. Absorption costing is also known as

a) Historical costing

b) Total costing

c) Both a and b

d) None of the above

 

Part 6: List for questions and answers of Financial Management

 

Q1. Answer: b

Q2. Answer: b

Q3. Answer: c

Q4. Answer: b

Q5. Answer: a

Q6. Answer: a

Q7. Answer: a

Q8. Answer: a

Q9. Answer: c

Q10. Answer: a

Q11. Answer: a

Q12. Answer: b

Q13. Answer: a

Q14. Answer: a

Q15. Answer: a

Q16. Answer: d

Q17. Answer: a

Q18. Answer: d

Q19. Answer: a

Q20. Answer: c