Financial Management
741. The asset which can be converted into cash when ever required with out loosing its value is
- Current asset
- Current liability
- Fixed asset
- Variable asset
Correct answer: (A)
Current asset
742. The regular funds invested in the working capital known as
- Net working capital
- Fixed working capital
- Temporary working capital
- Gross working capital
Correct answer: (D)
Gross working capital
743. Above permanent working capital which is required by the firm is knows as
- Gross working capital
- Permanent working capital
- Temporary working capital
- Net working capital
Correct answer: (C)
Temporary working capital
744. In his traditional role the finance manager is responsible for ______________.
- arrange of utilization of funds
- arrangement of financial resources
- acquiring capital assets of the organization
- effective management of capital
Correct answer: (D)
effective management of capital
745. The rate of return on investment ______________ with the shortage of working capital.
- falls
- going
- constant
- change
Correct answer: (B)
going
746. Which of the following is/are the problem(s) encountered in financial statement analysis?
- Development of benchmarks
- Window dressing
- Interpretation of results
- All of the above
Correct answer: (D)
All of the above
747. The overall financial condition of the organization is listed in the
- income statement
- profit and loss statement
- balance sheet
- statement of cash flows
Correct answer: (C)
balance sheet
748. If capital expense is recorded as revenue expense then which calculation will be wrong ?
- Bank Balance
- Debtors
- Creditors
- Net profit
Correct answer: (D)
Net profit
749. The Company's cost of capital is called
- Leverage rate
- Hurdle rate
- Risk rate
- Return rate
Correct answer: (A)
Leverage rate
750. If a company reports a net loss, it
- may still have a net increase in cash
- will not be able to pay cash dividends
- will not be able to get a loan
- will not be able to make capital expenditures
Correct answer: (A)
may still have a net increase in cash