Financial Management
411. Which of the following is true for a company which uses continuous review inventory system
- Order Interval is fixed
- Order Interval varies
- Order Quantity is fixed
- Both (a) and (c)
Correct answer: (B)
Order Interval varies
412. Which of the following is not included in cost of inventory?
- Purchase cost
- Transport in Cost
- Import Duty
- Selling Costs
Correct answer: (D)
Selling Costs
413. What is Economic Order Quantity?
- Cost of an Order
- Cost of Stock
- Reorder level
- Optimum order size
Correct answer: (D)
Optimum order size
414. Concept of Maximum Permissible Bank finance was introduced by
- Kannan Committee
- Chore Committee
- Nayak Committee
- Tandon Committee
Correct answer: (D)
Tandon Committee
415. A short-term lease which is often cancellable is known as
- Finance Lease
- Net Lease
- Operating Lease
- Leverage Lease
Correct answer: (C)
Operating Lease
416. One difference between Operating and Financial lease is:
- There is often an option to buy in operating lease
- There is often a call option in financial lease
- An operating lease is generally cancelable by lease
- A financial lease in generally cancelable by lease
Correct answer: (C)
An operating lease is generally cancelable by lease
417. Basic objective of diversification is
- Increasing Return
- Maximising Return
- Decreasing Risk
- Maximizing Risk
Correct answer: (C)
Decreasing Risk
418. The job of a finance manager is confined to
- Raising funds
- Management of cash
- Raising of funds and their effective utilization
- None of these
Correct answer: (C)
Raising of funds and their effective utilization
419. Inventory Turnover measures the relationship of inventory with:
- Average Sales
- Cost of Goods Sold
- Total Purchases
- Total Assets
Correct answer: (B)
Cost of Goods Sold
420. Debt to Total Assets of a firm is.2. The Debt to Equity boo would be:
- 0.80
- 0.25
- 1.00
- 0.75
Correct answer: (B)
0.25