481. Which of the following is not a motive to hold cash?
Transactionary Motive
Pre-scautionary Motive
Captal Investment
None of the above
Correct answer: (C) Captal Investment
482. Which of the following is not an objective of cash management ?
Maximization of cash balance
Minimization of cash balance
Optimization of cash balance
Zero cash balance
Correct answer: (C) Optimization of cash balance
483. Which of the following is not an element of credit policy?
Credit Terms
Collection Policy
Cash Discount Terms
Sales Price
Correct answer: (D) Sales Price
484. Credit Policy of a firm should involve a trade-off between increased
Sales and Increased Profit
Profit and Increased Costs of Receivables
Sales and Cost of goods sold
None of the above
Correct answer: (B) Profit and Increased Costs of Receivables
485. If the average balance of debtors has increased, which of the following might not show a change in general?
Total Sales
Average Payables
Current Ratio
Bad Debt loss
Correct answer: (B) Average Payables
486. Receivables Management deals with
Receipts of raw materials
Debtors collection
Creditors Management
Inventory Management
Correct answer: (B) Debtors collection
487. Inventory holding cost may include
Material Purchase Cost
Penalty charge for default
Interest on loan
None of the above
Correct answer: (D) None of the above
488. Cost of not carrying sufficient inventory is known as
Carrying Cost
Holding Cost
Total Cost
Stock-out Cost
Correct answer: (D) Stock-out Cost
489. A firm has inventory turnover of 6 and cost of goods sold is 7,50,000. With better inventory management, the inventory turnover is increased to 10. This would result in:
Increase in inventory by 50,000
Decrease in inventory by. 50,000
Decrease in cost of goods sold
Increase in cost of goods sold
Correct answer: (B) Decrease in inventory by. 50,000
490. In India, Commercial Papers are issued as per the guidelines issued by