COMMERCE PAGE 11
Commerce Page 11- MCQs
1:-Which of the following is an objective of Financial Management?
A:-Profit maximisation B:-Wealth maximisation C:-Both of these D:-Recording of financial information
Ans: C
12:-Financia| Decisions involve the following
A:-Financing, Profit and Dividend Decisions B:-Investment, financing and sales decisions
C:-Financing, Investment and dividend decisions D:-Financing, dividend and cash decisions
Ans: C
13:-Change in capital structure affect the overall cost of capital and value of the firm is
A:-Net income theory B:-Net operating Income theory C:-MM theory D:-None of these
Ans: A
14:-Proportionately large share of long term debt than its equity in capital structure of company is said to be
A:-High geared B:-Optimal geared C:-Fairly capitalised D:-Low geared
Ans: A
15:-The average cost of capital which has to be incurred to obtain additional funds required by a firm
A:-Average cost B:-Composite cost C:-Historical cost D:-Marginal cost
Ans: D
16:-The excess of actual or budgeted sales over the break even sales is known as
A:-Margin of safety B:-Angle of incidents C:-Break even point D:-None of these
Ans: A
17:-Which of the following is not a discounted method of capital budgeting?
A:-Discounted Pay back period B:-Net present value
C:-Accounting rate of return D:-|nterna| rate of return
Ans: C
18:-Capita| rationing involve
A:-Placing restrictions on the amount of new investment
B:-Choosing most profitable investment
C:-Selecting projects that maximise the firm's value
D:-All of these
Ans: D
19:-Which of the following is not a feature of venture capital financing?
A:-Investment in medium and large enterprises B:-High risk capital
C:-Private equity capital D:-Technical and managerial assistance
Ans: A
20:-Which of the following is not a method used for the management of accounts receivables?
A:-Lock Box System B:-Factoring C:-Concentration banking D:-None of these
Ans: D
21:-If a company adopts straight line method of depreciation in the first year, it should continue using it in subsequent years is the view of A:-Accrual concept B:-Conservatism concept
C:-Consistency concept D:-Matching concept
Ans: C
22:-Which of the following is Indian accounting standard for inventories?
A:-Ind AS 2 B:-Ind AS 14
C:-Ind AS 38 D:-Ind AS 8
Ans: A
23:-Provision is a
A:-Charge against profit B:-Appropriation of profit
C:-Reserve from profit D:-Intangible asset
Ans: A
24:- accounting focuses on anticipated revenue and expenses.
A:-Accrua| basis B:-Cash basis C:-Both of these D:-None of these
Ans: A
25:-Body responsible for setting International Financial Reporting Standards
A:-ICAI B:-IASB C:-BIFRS D:-AIFR
Ans: B
26:-Cash book with cash, bank and discount column is called
A:-Simple cash book B:-Doub|e column cash book C:-Petty cash book D:-None of these
Ans: D
27:-Imprest system is related to
A:-Journal B:-Trial Balance C:-Petty cash book D:-Comparative balance sheet
Ans: C
28:-In bank reconciliation statement, cheque issued by the company but not presented for payment is to be
A:-Added to bank statement balance
B:-Deducted from bank statement balance
C:-Recorded as re-collected
D:-Recorded as cheque returned
Ans: B
29:-Which of the following transactions are credited in financial accounting?
A:-Increase in asset B:-Increase in expenses C:-Both of these D:-None of these
Ans: D
30:-The process of transferring debit and credit balances of from journal to ledger is called
A:-Journalising B:-Posting C:-Ba|ancing D:-Reconciliation
Ans: B
A:-Profit maximisation B:-Wealth maximisation C:-Both of these D:-Recording of financial information
Ans: C
12:-Financia| Decisions involve the following
A:-Financing, Profit and Dividend Decisions B:-Investment, financing and sales decisions
C:-Financing, Investment and dividend decisions D:-Financing, dividend and cash decisions
Ans: C
13:-Change in capital structure affect the overall cost of capital and value of the firm is
A:-Net income theory B:-Net operating Income theory C:-MM theory D:-None of these
Ans: A
14:-Proportionately large share of long term debt than its equity in capital structure of company is said to be
A:-High geared B:-Optimal geared C:-Fairly capitalised D:-Low geared
Ans: A
15:-The average cost of capital which has to be incurred to obtain additional funds required by a firm
A:-Average cost B:-Composite cost C:-Historical cost D:-Marginal cost
Ans: D
16:-The excess of actual or budgeted sales over the break even sales is known as
A:-Margin of safety B:-Angle of incidents C:-Break even point D:-None of these
Ans: A
17:-Which of the following is not a discounted method of capital budgeting?
A:-Discounted Pay back period B:-Net present value
C:-Accounting rate of return D:-|nterna| rate of return
Ans: C
18:-Capita| rationing involve
A:-Placing restrictions on the amount of new investment
B:-Choosing most profitable investment
C:-Selecting projects that maximise the firm's value
D:-All of these
Ans: D
19:-Which of the following is not a feature of venture capital financing?
A:-Investment in medium and large enterprises B:-High risk capital
C:-Private equity capital D:-Technical and managerial assistance
Ans: A
20:-Which of the following is not a method used for the management of accounts receivables?
A:-Lock Box System B:-Factoring C:-Concentration banking D:-None of these
Ans: D
21:-If a company adopts straight line method of depreciation in the first year, it should continue using it in subsequent years is the view of A:-Accrual concept B:-Conservatism concept
C:-Consistency concept D:-Matching concept
Ans: C
22:-Which of the following is Indian accounting standard for inventories?
A:-Ind AS 2 B:-Ind AS 14
C:-Ind AS 38 D:-Ind AS 8
Ans: A
23:-Provision is a
A:-Charge against profit B:-Appropriation of profit
C:-Reserve from profit D:-Intangible asset
Ans: A
24:- accounting focuses on anticipated revenue and expenses.
A:-Accrua| basis B:-Cash basis C:-Both of these D:-None of these
Ans: A
25:-Body responsible for setting International Financial Reporting Standards
A:-ICAI B:-IASB C:-BIFRS D:-AIFR
Ans: B
26:-Cash book with cash, bank and discount column is called
A:-Simple cash book B:-Doub|e column cash book C:-Petty cash book D:-None of these
Ans: D
27:-Imprest system is related to
A:-Journal B:-Trial Balance C:-Petty cash book D:-Comparative balance sheet
Ans: C
28:-In bank reconciliation statement, cheque issued by the company but not presented for payment is to be
A:-Added to bank statement balance
B:-Deducted from bank statement balance
C:-Recorded as re-collected
D:-Recorded as cheque returned
Ans: B
29:-Which of the following transactions are credited in financial accounting?
A:-Increase in asset B:-Increase in expenses C:-Both of these D:-None of these
Ans: D
30:-The process of transferring debit and credit balances of from journal to ledger is called
A:-Journalising B:-Posting C:-Ba|ancing D:-Reconciliation
Ans: B