Financial Management
701. The most practical way to interpret or make sense of a firm's historical financial statements is through:
- Profit analysis
- Ratio analysis
- Estimate statement
- Forecast Hypothesis
- Assumption sheet
Correct answer: (B)
Ratio analysis
702. Finance is vital for which of the following business activity (activities) ?
- Marketing Research
- Product Pricing
- Design of marketing and distribution channels
- All of the given options
Correct answer: (D)
All of the given options
703. Maximising shareholders wealth means maximizing the
- Value of the firm's assets
- Amount of the firm's cash
- Value of the firm's investments
- Total market value of the firm's common stock
Correct answer: (D)
Total market value of the firm's common stock
704. Long-term financing plans with low liquidity have:
- High return and high risk
- Moderate return and Moderate risk
- Low return and low risk
- None of the above
Correct answer: (B)
Moderate return and Moderate risk
705. Which of the following is not a current asset
- Cash in hand
- Cash at bank
- Debtors
- Creditors
Correct answer: (D)
Creditors
706. The liability which should be paid within a period of one year is known as
- Current asset
- Current liability
- Fixed asset
- Variable asset
Correct answer: (B)
Current liability
707. The length or time period of the operating cycle of any firm can be defined as
- Operating cycle period
- Inventory conversion period
- Receivable conversion period
- None
Correct answer: (A)
Operating cycle period
708. Short term sources are
- Bank credit
- Public deposit
- Commercial papers
- All of the above
Correct answer: (D)
All of the above
709. ______________ management is the important task of the finance manager.
- Debt
- Equity
- Profit
- Cash
Correct answer: (D)
Cash
710. The fixed proportion of working capital should be generally financed from the ______________ capital sources.
- fixed
- variable
- semi-variable
- borrowed
Correct answer: (B)
variable