Financial Management
341. Which of the following represents passive dividend policy?
- that dividend is paid as a % of EPS
- that dividend is paid as a constant amount
- that dividend is paid after retaining profits for reinvestment
- all of the above
Correct answer: (C)
that dividend is paid after retaining profits for reinvestment
342. Dividend Distribution Tax is payable by
- Shareholders to Government
- Shareholders to Company
- Company to Government
- Holding to Subsidiary Company
Correct answer: (C)
Company to Government
343. 'Constant Dividend Per Share' Policy is considered as:
- Increasing Dividend Policy
- Decreasing Dividend Policy
- Stable Dividend Policy
- None of the above
Correct answer: (C)
Stable Dividend Policy
344. Which of the following is not relevant for dividend payment for a year ?
- Cash flow position
- Profit position
- Paid up capital
- Retained Earnings
Correct answer: (D)
Retained Earnings
345. Concentration Banking helps in
- Reducing Idle Bank Balance
- Increasing Collection
- Increasing Creditors
- Reducing Bank Transactions
Correct answer: (B)
Increasing Collection
346. Baumol's Model of Cash Management attempts to:
- Minimise the holding cost
- Minimization of transaction cost
- Minimization of total cost
- Minimization of cash balance
Correct answer: (C)
Minimization of total cost
347. Ageing schedule incorporates the relationship between
- Creditors and Days Outstanding
- Debtors and Days Outstanding
- Average Age of Directors
- Average Age of All Employees
Correct answer: (B)
Debtors and Days Outstanding
348. Out of the following, what is not true in respect of factoring?
- Continuous Arrangement between Factor and Seller
- Sale of Receivables to the factor
- Factor provides cost free finance to seller
- None of the above
Correct answer: (C)
Factor provides cost free finance to seller
349. In response to market expectations, the credit pence r j been increased from 45 days to 60 days. This would result in
- Decrease in Sales
- Decrease in Debtors
- Increase in Bad Debts
- Increase in Average Collection Period
Correct answer: (D)
Increase in Average Collection Period
350. Which of the following is related to Receivables Management?
- Cash Budget
- Economic Order Quantity
- Ageing schedule
- All of the above
Correct answer: (C)
Ageing schedule