Finance Management & Corporate Finance Quiz Set 3

1. Companies may adopt an aggressive or a conservative working capital policy. An aggressive policy means that a company?

Correct! Wrong!

2. Which of the following would be consistent with a more aggressive approach to financing working capital?

Correct! Wrong!

3. Which of the following illustrates the use of a hedging (or matching) approach to financing?

Correct! Wrong!

4. Permanent working capital?

Correct! Wrong!

5. Which of the following would not be financed from working capital?

Correct! Wrong!

6. When economic value added is used as the performance measure, value is only created if the after-tax operating income exceeds, which of the performance evaluation methods takes into consideration tax effects?

Correct! Wrong!

7. Which of the following best describes "Market Value Added"?

Correct! Wrong!

8. Market price per share of a firm having equity capital of Rs. 100000 consisting of shares of Rs. 10 each, profit after tax of Rs. 82000, & P/E ratio of 8 is?

Correct! Wrong!

9. Which of the following is expenses ratio? A) Administrative expenses ratio B) Selling and Distribution expenses ratio C) Factory expenses ratio D) Finance Expenses ratio

Correct! Wrong!

10. Marginal costs is taken as equal to?

Correct! Wrong!

11. If total cost of 100 units is Rs 5000 and those of 101 units is Rs 5030 then increase of Rs 30 in total cost is?

Correct! Wrong!

12. Marginal cost is computed as?

Correct! Wrong!

13. Marginal costing is also known as?

Correct! Wrong!

14. Management accounting is? A) Subjective B) Objective

Correct! Wrong!

15. The use of management accounting is?

Correct! Wrong!

16. The management accounting can be stated an extension of? A) Cost Accounting B) Financial Accounting C) Responsibility Accounting

Correct! Wrong!

17. Which of the following is true about management accounting? A) Management accounting is associated with presentation of accounting data B) Management accounting is extremely sensitive to investors needs

Correct! Wrong!

18. Management accounting assists the management?

Correct! Wrong!

19. Management accountancy is a structure for?

Correct! Wrong!

20. Who coined the concept of management accounting?

Correct! Wrong!

Finance Management & Corporate Finance Quiz Set 3
Below 12 is not good, 13-16 need some improvement, 16+ excellent

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