Financial Management
441. Dividend declared by a company must be paid in
- 20 days
- 30 days
- 32 days
- 42 days
Correct answer: (B)
30 days
442. In India, Dividend Distribution tax is paid on
- Equity Share
- Preference Share
- Debenture
- Both (a) and (b)
Correct answer: (D)
Both (a) and (b)
443. Which of the following is not considered in Lintner's Model ?
- Dividend payout ratio
- Current EPS
- Speed of Adjustment
- Preceding year EPS
Correct answer: (D)
Preceding year EPS
444. The Transaction Motive for holding cash is for
- Safety Cushion
- Daily Operations
- Purchase of Assets
- Payment of Dividends
Correct answer: (B)
Daily Operations
445. Which of the following is not considered by Miller-Orr Model?
- Variability in cash requirement
- Cost of transaction
- Holding cost
- Total annual requirement of cash
Correct answer: (D)
Total annual requirement of cash
446. Which of the following is not a technique of receivables Management?
- Funds Flow Analysis
- Ageing Schedule
- Days sales outstanding
- Collection Matrix
Correct answer: (A)
Funds Flow Analysis
447. Securitization is related to conversion of
- Receivables
- Stock
- Investments
- Creditors
Correct answer: (A)
Receivables
448. Cash Discount term 3/15, net 40 means
- 3% Discount if payment in 15 days, otherwise full payment in 40 days
- 15% Discount if payment in 3 days, otherwise full payment 40 days
- 3% Interest if payment made in 40 days and 15%,interest thereafter
- None of the above
Correct answer: (A)
3% Discount if payment in 15 days, otherwise full payment in 40 days
449. Use of safety stock by a firm would
- Increase Inventory Cost
- Decrease Inventory Cost
- No effect on cost
- None of the above
Correct answer: (A)
Increase Inventory Cost
450. ABC Analysis is useful for analyzing the inventories:
- Based on their Quality
- Based on their Usage and value
- Based on Physical Volume
- All of the above
Correct answer: (B)
Based on their Usage and value