Financial Management
491. The basic objective of Tandon Committee recommendations is that the dependence of'industry on bank should gradually
- Increase
- Remain Stable
- Decrease
- None of the above
Correct answer: (C)
Decrease
492. Under the provisions of AS-19 'Leases', a leased asset is shown is the balance sheet of
- Manufacturer
- Lessor
- Lessee
- Financing bank
Correct answer: (C)
Lessee
493. For a lesser, a lease is a
- Investment decision
- Financing decision
- Dividend decision
- None of the above
Correct answer: (A)
Investment decision
494. Financial decision involve;
- Investment, financing and dividend decision
- Investment, financing and sales decision
- Financing, dividend and cash decision
- None of these
Correct answer: (A)
Investment, financing and dividend decision
495. Ratio of Net Income to Number of Equity Shares known as:
- Price Earnings Ratio
- Net Profit Ratio
- Earnings per Share
- Dividend per Share
Correct answer: (C)
Earnings per Share
496. Which of the following statements is correct?
- A Higher Receivable Turnover is not desirable
- Interest Coverage Ratio depends upon Tax Rate
- Increase in Net Profit Ratio means increase in Sales
- Lower Debt-Equity Ratio means lower Financial Risk
Correct answer: (D)
Lower Debt-Equity Ratio means lower Financial Risk
497. Capital Budgeting deals with:
- Long-term Decisions
- Short-term Decisions
- Both (a) and (b)
- Neither (a) nor (b)
Correct answer: (A)
Long-term Decisions
498. Capital Budgeting Decisions are based on:
- Incremental Profit
- Incremental Cash Flows
- Incremental Assets
- Incremental Capital
Correct answer: (B)
Incremental Cash Flows
499. Evaluation of Capital Budgeting Proposals is based on Cash Flows because:
- Cash Flows are easy to calculate
- Cash Flows are suggested by SEBI
- Cash is more important than profit
- None of the above
Correct answer: (C)
Cash is more important than profit
500. Profitability Index, when applied to Divisible Projects, impliedly assumes that:
- Project cannot be taken in parts
- NPV is linearly proportionate to part of the project taken up
- NPV is additive in nature
- Both (b) and (c)
Correct answer: (D)
Both (b) and (c)