Question 1

Which from the following is NOT an example of intangible assets?&#10;A)trademarks&#10;B)patents&#10;C)buildings&#10;D)technical expertise

Accepted Answer

Buildings are considered tangible assets because they have a physical presence and can be touched or seen.

Question 2

The following are the examples of financial assets except?&#10;A)stocks&#10;B)bank loan&#10;C)bond&#10;D)raw material

Accepted Answer

Raw material is a physical asset, not a financial asset. Financial assets include stocks, bank loans, and bonds, which represent monetary value or claims.

Question 3

Business finance refers to ...... and ........ employed in a business.&#10;A)money&#10;B)credit&#10;C)both a & b&#10;D)none of the above

Accepted Answer

Business finance encompasses both money and credit as resources used for financial operations within a business.

Question 4

Business finances is concerned with _________ funds and _______ funds from different sources.&#10;A)estimation of funds&#10;B)raising of funds&#10;C)short term finance&#10;D)both a & b

Accepted Answer

Business finances involve estimating the required funds for various operations and raising these funds from different sources.

Question 5

Which of the following is not a function of finance manager?&#10;A)mobilization of funds&#10;B)deployment of funds&#10;C)control over use of funds&#10;D)manipulate share price of the company

Accepted Answer

Manipulating the share price of the company is not a legitimate function of a finance manager. The primary responsibilities of a finance manager include mobilizing, deploying, and controlling the use of funds to ensure the financial health and efficiency of the organization. Manipulating share prices can be unethical and illegal, contrasting with the finance manager's role to enhance shareholder value through legitimate, transparent, and responsible financial management practices.

Question 6

Which is the following main decision taken by the financial manager in a company?&#10;A)income decision&#10;B)financing decision&#10;C)appraisal decision&#10;D)budget decision

Accepted Answer

The financing decision is a main decision taken by the financial manager in a company, as it involves determining the best financing mix or capital structure for the company, deciding on the proportion of equity and debt, and the specific sources of finance.

Question 7

Finance Function comprises&#10;A)safe custody of funds only&#10;B)expenditure of funds only&#10;C)procurement of finance only&#10;D)procurement & effective use of funds

Accepted Answer

Finance Function encompasses both the procurement of funds and their effective use within an organization. This includes activities such as raising capital, managing investments, budgeting, and financial planning to ensure the organization's financial health and sustainability.

Question 8

The focal point of financial management in a firm is:&#10;A)the number and types of products or services provided by the firm.&#10;B)the minimization of the amount of taxes paid by the firm.&#10;C)the creation of value for shareholders.&#10;D)the dollars profits earned by the firm.

Accepted Answer

The primary goal of financial management within a firm is to maximize shareholder value. This involves making decisions that increase the worth of the company's stock or equity, thereby creating value for shareholders.

Question 9

The term financial statement refers to&#8230;&#10;A)income statement&#10;B)cash flow and fund flow&#10;C)balance sheet&#10;D)all of the above

Accepted Answer

Financial statements encompass the income statement, cash flow statement, fund flow statement, and balance sheet, among others, providing a comprehensive overview of a company's financial health.

Question 10

Which of the following is the main objective of a financial statement?&#10;A)to know the solvency&#10;B)to know the debt capacity&#10;C)to know the earning capacity&#10;D)all of the above

Accepted Answer

The main objective of a financial statement is to provide information about the financial position, performance, and changes in financial position of an entity that is useful to a wide range of users in making economic decisions. This includes knowing the solvency, debt capacity, and earning capacity of the entity.

Question 11

In financial statements, the fixed assets are shown at &#8230;&#10;A)market price&#10;B)cost price&#10;C)replacement price&#10;D)none of the above

Accepted Answer

The answer of In financial statements, the fixed assets are...

Question 12

What is followed while preparing the financial statements?&#10;A)accounting conventions&#10;B)accounting principles&#10;C)accounting concepts&#10;D)all of the above

Accepted Answer

The answer of What is followed while preparing the financial...

Question 13

In financial statement the stock is valued at cost or market price whichever is less on the basis of&#8230;&#10;A)accounting concepts&#10;B)accounting conventions&#10;C)accounting principles&#10;D)none of the above

Accepted Answer

The answer of In financial statement the stock is valued...

Question 14

The analysis and interpretations of the financial statement will reveal &#8230;&#10;A)the financial position&#10;B)the profitability&#10;C)none of the above.&#10;D)both a & b

Accepted Answer

The answer of The analysis and interpretations of the financial...

Question 15

The process of explaining the meaning, significance and relationship between two financial factors is called &#8230;&#10;A)summarization&#10;B)analysis&#10;C)interpretation&#10;D)none of the above

Accepted Answer

The answer of The process of explaining the meaning, significance...

Question 16

The process of comparing various financial factors of a company over a period of time is known as &#8230;&#10;A)inter?firm comparison&#10;B)ratio analysis&#10;C)intra?firm comparison&#10;D)inter?industry comparison

Accepted Answer

The answer of The process of comparing various financial factors...

Question 17

Which of the following is technique of financial statement analysis?&#10;A)common?size statement&#10;B)comparative statement&#10;C)trend analysis&#10;D)all of the above

Accepted Answer

The answer of Which of the following is technique of...

Question 18

________is a simply the amount of cash coming in to a business.&#10;A)cash flow&#10;B)inflow&#10;C)both a & b&#10;D)none of the above.

Accepted Answer

The answer of ________is a simply the amount of cash...

Question 19

If value of opening inventories increases, what happens to the value of gross profit?&#10;A)decreases&#10;B)increases&#10;C)stays the same&#10;D)gets closer to net profit

Accepted Answer

The answer of If value of opening inventories increases, what...

Question 20

Incorrect cash flow planning can lead to ________&#10;A)solvency&#10;B)insolvency&#10;C)bankruptcy&#10;D)failure

Accepted Answer

The answer of Incorrect cash flow planning can lead to...

Question 21

Analysis of any financial Statement comprises&#10;A)balance sheet&#10;B)p&l account&#10;C)trading account&#10;D)all of the above

Accepted Answer

The answer of Analysis of any financial Statement comprises&#10;A)balance sheet&#10;B)p&l...

Question 22

Which of the following are techniques, tools or methods of analysis and interpretation of financial statements?&#10;A)ratio analysis&#10;B)average analysis&#10;C)trend analysis&#10;D)all of the above

Accepted Answer

The answer of Which of the following are techniques, tools...

Question 23

Interpretation of accounts is the&#10;A)art and science of translating the figures&#10;B)to know financial strengths and weaknesses of a business&#10;C)to know the causes for the prevailing performance of business&#10;D)all of the above

Accepted Answer

The answer of Interpretation of accounts is the&#10;A)art and science...

Deck 2: Financial Management and Analysis