Question 11 

pts
The concept of financial management is:
Group of answer choices

Profit maximization

Organization of funds

All features of obtaining and using financial resources for company

operations

Effective Management of every company

 
Flag question: Question 2
Question 21 pts
What is the primary goal of financial management?
Group of answer choices

To raise profit

To maximize the return

To minimize the risk

To maximize the owner’s wealth

 
Flag question: Question 3
Question 31 pts
Finance function involves:
Group of answer choices

Procurement of finance only

Safe custody of funds

Expenditure of funds only

Procurement and effective utilization of funds

 
Flag question: Question 4
Question 41 pts
Maximisation of Shareholders Wealth is reflected in:
Group of answer choices

Market Price of Equity Shares

Number of Shareholders

Sales Maximization

none of the above

 
Flag question: Question 5
Question 51 pts
The traditional view of financial management looks at: 
Group of answer choices

mobilization of funds through financial instruments

all the above

orientation of financial function with accounting function

arrangement of short-term and long-term funds from financial institutions

 
Flag question: Question 6
Question 61 pts
A decision for replacing machines with modern machinery with higher
production capacity is
Group of answer choices

working capital decisions

Financing decisions

Investment decisions

Dividend decisions
 
Flag question: Question 7
Question 71 pts
The only feasible purpose of financial management is:
Group of answer choices

Sales Maximization

Wealth Maximization

Profit Maximization

Assets maximization
 
Flag question: Question 8
Question 81 pts
Which of the following statements is correct regarding profit maximization as
the primary goal of the firm?
Group of answer choices

Profit maximization does consider the impact on individual shareholder's EPS.

Profit maximization considers the firm's risk level.

Profit maximization will not lead to increasing short-term profits at the expense
of lowering expected future profits.

Profit maximization is concerned more with maximizing net income than

the stock price.
 
Flag question: Question 9
Question 91 pts
The objective of profit maximization considers the time value of money.
Group of answer choices

True

False
 
Flag question: Question 10
Question 101 pts
Shareholder wealth is measured by the market value of the firm’s common
stock
Group of answer choices

True

False

Quiz 2

Question 11 pts
Name the procedure that allows management to forecast fund requirements,
both in terms of quantity and timing.
Group of answer choices

Financial management

Dividend decision

Financial planning

Capital budgeting decision

 
Flag question: Question 2
Question 21 pts
Short-term financial planning is referred to as-
Group of answer choices

Policies

Programme

Objectives

Budget
 
Flag question: Question 3
Question 31 pts
The financial plans are created by considering a variety of factors. These are –
Group of answer choices

Organizational Performance

All of the above

Investments

Prospects for Growth

 
Flag question: Question 4
Question 41 pts
A positive working capital means that:
Group of answer choices

the company is unable to meet its short-term liabilities.

the company is able to pay-off its long-term liabilities.

the company is able to pay-off its short-term liabilities.

the company is able to select profitable projects.

 
Question 51 pts
Which of the following analyzes the accounts receivable, inventory and
accounts payable cycles in terms of number of days?
Group of answer choices

Operating cycle

Operation cycle

Current asset cycle

Business cycle
 
Question 61 pts
Working capital =
Group of answer choices

Current Assets- Current liabilities

Current assets + current liabilities

Fixed assets – long term liabilities

Current assets- total liabilities

 
Question 71 pts
Which of the following is not an application of working capital?
Group of answer choices

Expenditure in the normal course of business

Current obligations for payment

Expenditure to acquire capital

Day -to-day expenditure of business

 
Question 81 pts
Gross working capital refers to –
Group of answer choices

The working capital which is necessary on a continuous and uninterrupted basis

The firm’s investment in current assets

The amount utilized at the time of contingencies

The capital which is required at the time of the commencement of business.

 
Question 9
One of the important objective of working capital management is to maintain
the optimum levels of investment in current assets.
Group of answer choices
True

False
 
Question 10
Other things remaining constant, if the debtors increase as compared to last year
it means company has a poor credit policy.
Group of answer choices

True

False

Week_03_Quiz
Question 11 pts
Contingencies are – ………..

Group of answer choices

contingencies are added to current assets.

Deducted from gross working capital

Contingencies are not considered in financial management; it is

considered in accounts only

Added to gross working capital

 Flag question: Question 2
Question 21 pts
Negative working capital means that –

Group of answer choices

The company currently is able to meet its short-term liabilities

The company has negative earnings before interest and tax

The company has no current assets at all

The company currently is unable to meet its short-term liabilities

Flag question: Question 3

Question 31 pts
Which of the following is correct formula to calculate WIP Conversion
Period?
 Flag question: Question 4
Question 41 pts
Regular Working Capital –

Group of answer choices

Refers to the difference between current asset and Current liabilities.

supplies the funds necessary to meet the current working expenses ie.
for purchasing raw material and supplies, payment of wages, salaries and
other sundry expenses.

Refers to the firm’s investment in current assets.

Is amount over and above the permanent level of working capital.

Flag question: Question 5
Question 51 pts
Fluctuating Working Capital is also called as —

Group of answer choices

Reserve Margin Working Capital

Variable working capital

Permanent Working Capital

Temporary Working Capital

Flag question: Question 6

Question 61 pts
Choose the odd one from the following:

Group of answer choices

Outstanding salaries

Bank overdraft

Bills payable
 Land and building

Flag question: Question 7

Question 71 pts
Which of the following represents the amount utilized at the time of
contingencies?

Group of answer choices

Net working capital

Fixed working capital

Extra working capital

Reserve Working Capital

Flag question: Question 8

Question 81 pts
Inventory is listed as a part of current assets. Stock or inventory in an
organization means:

Group of answer choices

All the raw material, Semi-finished and the finished goods in the
organization
 Goods that are readily available for sale

All the assets available for sale

Goods that can be sold within a short span of time

Flag question: Question 9

Question 91 pts
Decrease in current assets means –

Group of answer choices

Decrease in inventories

Increase in accounts payable days.

Decrease in working capital

Increase in working capital

Flag question: Question 10

Question 101 pts
A company which has a better operating efficiency requires less working
capital.

Group of answer choices

True

False

Quiz 4

Question 11 pts
 The transaction motive for holding cash is for_______________

Safety cushion
Daily operations
Payment of dividends
Purchase of assets

Question 2
Cash budget is expressed in _____________terms.

Monetary terms
Both monetary and physical terms
Physical terms
None of the given options

Question 3
Which of the following is not true about a cash budget?

Cash budgets show the expected bank balance at the end of the month.
A cash budget sets out all cash receipts and payments that a business
expects to make over a period of time.
Cash budgets are usually prepared on a month-to-month basis.
Cash budgets include personal cash receipts and expenses.

Question 4
Which of the following statements are not true?
 Credit sales are made when the payment is received after the goods or
services have been delivered.
Credit purchases are where the goods or services have not yet been
received by the business and payment has not yet been made.
Cash sales are made when cash is received at the same time as the goods
or services are delivered.
Cash purchases are those purchases for which cash payment will be made
at the same time as the goods or services are received.

Question 5
Which of the following would not be included in cash budget?

Purchase of raw materials for cash.

Payment of Dividend
Cash sales
Depreciation charges

Question 6
Cash Budget statement shows the position of business as on
…………. of the business period.

Between opening and closing date

None of given option
Closing date
Opening date

Question 7
Which of the following is not method of preparation of cash budget?
Receipts & Payments Method
Adjusted Revenue Method
Adjusted Balance Sheet Method
Adjusted Income Method

Question 8
Baumol’s Model of Cash Management attempts to:

Minimization of cash balance

Minimization of total cost
Minimization of transaction cost
Minimise the holding cost

Question 9
Receivables arise if the goods/ services are sold/ rendered on cash.

True
False

Question 10
The cash discount is given to customers for early payments.

True
False