Deck 2: Financial Management and Analysis

Question 1

Which from the following is NOT an example of intangible assets?

A)trademarks
B)patents
C)buildings
D)technical expertise

Answer 1

buildings

Question 2

The following are the examples of financial assets except?

A)stocks
B)bank loan
C)bond
D)raw material

Answer 2

raw material

Question 3

Business finance refers to ...... and ........ employed in a business.

A)money
B)credit
C)both a & b
D)none of the above

Answer 3

both a & b

Question 4

Business finances is concerned with _________ funds and _______ funds from different sources.

A)estimation of funds
B)raising of funds
C)short term finance
D)both a & b

Question 5

Which of the following is not a function of finance manager?

A)mobilization of funds
B)deployment of funds
C)control over use of funds
D)manipulate share price of the company

Question 6

Which is the following main decision taken by the financial manager in a company?

A)income decision
B)financing decision
C)appraisal decision
D)budget decision

Question 7

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

Question 8

The focal point of financial management in a firm is:

A)the number and types of products or services provided by the firm.
B)the minimization of the amount of taxes paid by the firm.
C)the creation of value for shareholders.
D)the dollars profits earned by the firm.

Question 9

The term financial statement refers to…

A)income statement
B)cash flow and fund flow
C)balance sheet
D)all of the above

Question 10

Which of the following is the main objective of a financial statement?

A)to know the solvency
B)to know the debt capacity
C)to know the earning capacity
D)all of the above

Question 11

In financial statements, the fixed assets are shown at …

A)market price
B)cost price
C)replacement price
D)none of the above

Question 12

What is followed while preparing the financial statements?

A)accounting conventions
B)accounting principles
C)accounting concepts
D)all of the above

Question 13

In financial statement the stock is valued at cost or market price whichever is less on the basis of…

A)accounting concepts
B)accounting conventions
C)accounting principles
D)none of the above

Question 14

The analysis and interpretations of the financial statement will reveal …

A)the financial position
B)the profitability
C)none of the above.
D)both a & b

Question 15

The process of explaining the meaning, significance and relationship between two financial factors is called …

A)summarization
B)analysis
C)interpretation
D)none of the above

Question 16

The process of comparing various financial factors of a company over a period of time is known as …

A)inter?firm comparison
B)ratio analysis
C)intra?firm comparison
D)inter?industry comparison

Question 17

Which of the following is technique of financial statement analysis?

A)common?size statement
B)comparative statement
C)trend analysis
D)all of the above

Question 18

________is a simply the amount of cash coming in to a business.

A)cash flow
B)inflow
C)both a & b
D)none of the above.

Question 19

If value of opening inventories increases, what happens to the value of gross profit?

A)decreases
B)increases
C)stays the same
D)gets closer to net profit

Question 20

Incorrect cash flow planning can lead to ________

A)solvency
B)insolvency
C)bankruptcy
D)failure

Question 21

Analysis of any financial Statement comprises

A)balance sheet
B)p&l account
C)trading account
D)all of the above

Question 22

Which of the following are techniques, tools or methods of analysis and interpretation of financial statements?

A)ratio analysis
B)average analysis
C)trend analysis
D)all of the above

Question 23

Interpretation of accounts is the

A)art and science of translating the figures
B)to know financial strengths and weaknesses of a business
C)to know the causes for the prevailing performance of business
D)all of the above