MCQ on Strategic Financial Management 4

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Objective Questions and Answers of MBA: MCQ on Strategic Financial Management 4

Subject: Objective Questions and Answers of MBA: MCQ on Strategic Financial Management 4

Part 4: List for questions and answers of Strategic Financial Management

 

Q1. Which of the following are applications of funds?

a) Payment of dividend on share capital

b) Payment of tax

c) Increase in working capital

d) all of above

 

Q2. Which of the following are treated as long term investments?

a) Non-current investments

b) Trade investments

c) Sinking fund investments

d) all of the above

 

Q3. Provision of taxation is treated as

a) As a current liability

b) As an appropriation of profits

c) either a or b

d) None of the above

 

Q4. As per accounting standard as3, provision for taxation should be treated as

a) As a current liability

b) as an appropriation of profits

c) Either a or b

d) None of the above

 

Q5. Which of the following statement is true?

a) If the amount of good will increases during current year, the difference is treated as purchase of goodwill

b) If the amount of good will decreases during current year, it will treated as written off

c) both a and b

d) None of the above

 

Q6. The opening and closing balance of general reserves are rs 10,000 and rs 9,000, respectively. It is stated in addition information that a loss of rs 1000 has been written off in general reserves. In such a case, decline in reserve and loss on investment will be adjusted in p and l account

a) True

b) false

 

Q7. 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

 

Q8. 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

 

Q9. Cash flow statement studies causes of change in working capital

a) True

b) false

 

Q10. _________ 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

 

Q11. Which of the following statements are true?

A) cash flow statement is more useful for short term cash planning.

B) funds flow statement is more useful in planning medium term and long term financing.

C) cash flow statement discloses the position of liquidity in a better way

a) Only a

b) only b

c) Only c

d) a, b and c

 

Q12. _____ 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 

 

Q13. Fixed expenses decrease per unit with the increases in production and increases per unit with the decrease in production

a) true

b) False

 

Q14. 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

 

Q15. 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

 

Q16. 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

 

Q17. Marginal costing is also known as

a) Direct costing

b) Variable costing

c) both a and b

d) None of the above

 

Q18. Provision of taxation is treated as

a) As a current liability

b) As an appropriation of profits

c) either a or b

d) None of the above 

 

Q19. 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

 

Q20. As per accounting standard as3, provision for taxation should be treated as

a) As a current liability

b) as an appropriation of profits

c) Either a or b

d) None of the above

 

Part 4: List for questions and answers of Strategic Financial Management

 

Q1. Answer: d

Q2. Answer: d

Q3. Answer: c

Q4. Answer: b

Q5. Answer: c

Q6. Answer: b

Q7. Answer: a

Q8. Answer: b

Q9. Answer: b

Q10. Answer: a

Q11. Answer: d

Q12. Answer: d

Q13. Answer: a

Q14. Answer: a

Q15. Answer: a

Q16. Answer: a

Q17. Answer: c

Q18. Answer: c

Q19. Answer: a

Q20. Answer: b