Financial Management Online Test Part 3

11. Which of the following is clubbed with Current Assets in the Balance Sheet?

a. Investments
b. Contingent liabilities
c. Loans and advances
d. Miscellaneous expenses

Answer: a. Investments

12. Which transactions have an effect on the current ratio?

a. Provision for outstanding expenses
b. Cash received from debtors
c. Cash payment made to creditors
d. Only and b
e. All the above

Answer: e. All the above

13. Which of the follwing are the objectives of finance function?

i. Profit Maximisation
ii. Wealth Maximisation
iii. Insurance
iv. Auditing & Survey

a. Both i and ii
b. Both i and iv
c. All the above
d. None of the above

Answer: a. Both i and ii

14. Which of the following are the approaches to compute the cost of equity shares?

a. Earning/Price
b. Dividend/Price
c. Both a and b
e. None of the above

Answer: d. Both a and b

15. Match the Following

1] Non-cumulative Preference sharesi] Dividend arrears do not accumulate
2] Registered Debenturesii] Holders registered in the company as debenture holders
3] Non-Convertible Debenturesiii]Can't be converted into equity shares
iv] Preference Dividend arrears accumulate
a. 1-i, 2-ii, 3-iii
b. 1-ii, 2-iii, 3-iv
c. 1-iii, 2-i , 3-iv
d. 1-i, 2-iv, 3-ii

Answer: a. 1-i, 2-ii, 3-iii