1) Financial management mainly focuses on
a. Efficient management of every business
b. Brand dimension
c. Arrangement of funds
d. All elements of acquiring and using means of financial resources for financial activities
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Answer
Explanation
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ANSWER: All elements of acquiring and using means of financial resources for financial activities
Explanation:
No explanation is available for this question!
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2) Agency cost consists of
a. Binding
b. Monitoring
c. Opportunity and structure cost
d. All of the above
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Answer
Explanation
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ANSWER: All of the above
Explanation:
No explanation is available for this question!
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3) Which of the following statements are true?
A) Financial statements are only interim report.
B) Financial statements are also known as annual records.
C) Financial statements are historic.
a. Both A and B
b. Both A and C
c. Both B and C
d. A, B, C
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Answer
Explanation
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ANSWER: Both B and C
Explanation:
No explanation is available for this question!
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4) The objective of wealth maximization takes into account
a. Amount of returns expected
b. Timing of anticipated returns
c. Risk associated with uncertainty of returns
d. All of the above
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Answer
Explanation
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ANSWER: All of the above
Explanation:
No explanation is available for this question!
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5) Finance Function comprises
a. Safe custody of funds only
b. Expenditure of funds only
c. Procurement of finance only
d. Procurement & effective use of funds
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Answer
Explanation
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ANSWER: Procurement & effective use of funds
Explanation:
No explanation is available for this question!
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6) Financial management process deals with
a. Investments
b. Financing decisions
c. Both a and b
d. None of the above
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Answer
Explanation
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ANSWER: Financing decisions
Explanation:
No explanation is available for this question!
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7) The only feasible purpose of financial management is
a. Wealth Maximization
b. Sales Maximization
c. Profit Maximization
d. Assets maximization
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Answer
Explanation
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ANSWER: Wealth Maximization
Explanation:
No explanation is available for this question!
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8) Certain assumptions are essential to prepare financial statements.
a. True
b. False
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Answer
Explanation
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ANSWER: True
Explanation:
No explanation is available for this question!
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9) Schedules attached with the balance sheet forms a part of the financial statements.
a. True
b. False
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Answer
Explanation
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ANSWER: True
Explanation:
No explanation is available for this question!
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10) The statement of financial position and the balance sheet are synonyms.
a. True
b. False
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Answer
Explanation
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ANSWER: True
Explanation:
No explanation is available for this question!
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