MCQ on Management of Financial Services 1

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Objective Questions and Answers of MBA: MCQ on Management of Financial Services 1

Subject: Objective Questions and Answers of MBA: MCQ on Management of Financial Services 1

Part 1: List for questions and answers of Management of Financial Services


Q1. The formula used to calculate current ratio is

a) Current assets / Current liabilities

b) Current liabilities / Current assets

c) Inventory / Current liabilities

d) Current liabilities / Inventory


Q2. For a healthy business the current ratio lies between

a) 0 to 1.5

b) 1.5 to 3

c) 3 to 4.5

d) 4.5 to 6


Q3. In ABC analysis ‘A’ class consist of items having

a) Accurate records

b) Good records

c) Minimal records

d) No records


Q4. The symptom of large inventory accumulation in anticipation of price rise in future will be indicated by

a) Asset turnover ratio

b) Working Capital turnover ratio

c) Inventory turnover ratio

d) All of the above


Q5. The comparison of financial data of same time period of different organisations engaged in similar business

a) Time series analysis

b) Cross-sectional analysis

c) Spatial data analysis

d) None of the above


Q6. An example of fixed asset is

a) Live stock

b) Value stock

c) Income stock

d) All of the above 


Q7. The following is (are) the limitation of Economic Order Quantity assumption(s)

a) Demand may vary throughout the year

b) It assumes that the storage space is unlimited

c) Prices of materials change throughout the year

d) All of the above


Q8. The assets held by a business which can be converted in the form of cash, without disturbing the normal operations of a business

a) Tangible assets

b) Intangible assets

c) Fixed assets

d) Current assets


Q9. The return which the company pays on borrowed funds is termed as

a) Dividend

b) Interest

c) Bonus

d) All of the above


Q10. The following is(are) the type(s) of capital budgeting decision(s)

a) Diversification

b) Replacements

c) Expansion

d) All of the above


Q11. The following is(are) the external source(s) of cash

a) Long terms loans

b) Short term borrowings

c) Issue of new shares

d) All of the above


Q12. The total cost that arises when the quantity produced is increased by one unit is called

a) Average cost

b) Marginal cost

c) Fixed cost

d) Unit cost 


Q13. Current assets are also referred to as

a) Working capital

b) Investments

c) Inventory

d) Livestock


Q14. Carriage Inward is normally debited to

a) Profit and Loss account

b) Manufacturing Account

c) Marketing Account

d) None of the above


Q15. The standard liquid ratio is

a) 2:1

b) 1:2

c) 1:1

d) 1:3


Q16. Process of selling and buying of stocks and bonds is classified as

a) s-trade

b) b-trade

c) e-trade

d) stock trade


Q17. Situation in which claims by financial institutions than claims issued by corporations is more considerable for investors is classified as

a) asset transformers

b) liability transformers

c) issuing transformers

d) claiming transformers


Q18. Sukuk is Arabic name stand for

a) financial liabilities

b) financial certificates

c) financial assets

d) financial loans 


Q19. A type of partnership where one party offer funds while other gives expertise and management is

a) murabaha

b) musharika

c) ijarah

d) mudarabah


Q20. Reduction of risk by holding large number of securities in portfolio of assets is classified as

a) diversification

b) selling ability

c) reduction ability

d) director ability


Part 1: List for questions and answers of Management of Financial Services


Q1. Answer: a

Q2. Answer: b

Q3. Answer: a

Q4. Answer: c

Q5. Answer: b

Q6. Answer: a

Q7. Answer: d

Q8. Answer: d

Q9. Answer: b

Q10. Answer: d

Q11. Answer: d

Q12. Answer: b

Q13. Answer: a

Q14. Answer: b

Q15. Answer: c

Q16. Answer: c

Q17. Answer: a

Q18. Answer: b

Q19. Answer: d

Q20. Answer: a