MCQ Questions on Financial Management
1- The law of demand is a
A:-Quantitative statement
B:-Qualitative statement
C:-Illustrative statement
D:-Selective statement
2- National Income is
A:-Net dividend
B:-Net output
C:-Net interest
D:-Net income
3- The income method for measuring GNP considers
A:-Wages and Salaries
B:-Unpublished corporate profits
C:-Rents
D:-All of the above
4- Which item is included in the capital structure of a company
A:-Equity capital
B:-Preference share capital
C:-Debt capital
D:-All of these
5- A company can reduce its issued capital by
A:-Convertible shares
B:-payment of loan
C:-Redemption of redeemable preference shares
D:-Payment of interest
6- The dividend is the portion of
A:-Current assets
B:-Debt
C:-Networth of the company
D:-Profit of the company
7- The method of raising equity capital from existing members by offering securities on a pro-rata basis is referred to as
A:-Public issue
B:-Bonus issue
C:-Right issue
D:-Bought-out deals
8- SGR stands for
A:-Sales Growth Rate
B:-Statutory Growth Rate
C:-Sustainable Growth Rate
D:-Super Growth Rate
9- What is the formula for the computation of earnings per share?
A:-(Net profit/share capital)100
B:-(Dividend/Net profit)100
C:-Net profit/sales
D:-Net profit after tax, interest, and preference dividend/Number of equity shares
10- ________ audit is compulsory for all types of joint stock companies
A:-Cost Audit
B:-Financial Audit
C:-Efficiency Audit
D:-None of the above
ANSWERS:
1-(B), 2-(B), 3-(D), 4-(D), 5-(C), 6-(D), 7-(C), 8-(C), 9-(D), 10-(B)