Financial Management MCQs

The job of a finance manager is confined to

• Raising funds

• Management of cash

• Raising of funds and their effective utilization

• None of these

Marginal cost of capital is the cost of

• Additional Sales

• Additional Funds

• Additional Interests

• None of the above

Which of the following statements is correct?

• A Higher Receivable Turnover is not desirable

• Interest Coverage Ratio depends upon Tax Rate

• Increase in Net Profit Ratio means increase in Sales

• Lower Debt-Equity Ratio means lower Financial Risk

Which of the following assets is not considered as current asset: 

• Stock
• Furniture 
• Cash
• Goodwill

Wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.

• Consumer

• Seller

• Capital

• Demand

The objective of wealth maximization takes into account

• Amount of returns expected
• Timing of anticipated returns
• Risk associated with uncertainty of returns
• All of the above