The concept of Financial management is.

All features of obtaining&using financial resources for company operations

Finance Function comprises

Procurement & effective use of funds

Financial management is mainly concerned with

All aspects of acquiring&utilizing financial resources for firms activities

What is the primary goal of financial management?

To maximise the owner’s wealth

The finance manager is accountable for.

Arrangement of financial resources

What does financial leverage measure?

The sensibility of EPS with % change in the EBIT level

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Financial Management

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Questions 20

Answers

1
If the Present Value of Cash Inflows are greater than the Present Value of Cash Outflows, the project would be
Rejected with condition
Accepted
Rejected with approval
Rejected
2
Operating leverage measures _____
business risk
production risk
financial risk
both risks
3
Financial management process deals with
None of the above
Both a and b
Financial management process deals with
Financing decisions
4
saving accounts are ____ but are not _____.
liquid; marketable
marketable; liquid
negotiable; liquid
liquid; personal
5
traditional approach confines finance function only to ____ funds
financing
mobilizing
utilizing
raising
6
Operating leverage x Financial Leverage = _______
Fixed leverage
Combined Leverage
Operating Combined Leverage
Financial Combined Leverage
7
The concept of Financial management is.
Organization of funds
All features of obtaining&using financial resources for company operations
Profit maximization
Effective Management of every company
8
The return which the company pays on borrowed funds is termed as
All of the above
Interest
Bonus
Dividend
9
Finance Function comprises
Procurement & effective use of funds
Safe custody of funds only
Expenditure of funds only
Procurement of finance only
10
EBIT is usually the same thing as
funds provided by operations
operating profit
earnings before taxes
net income
11
Procurement & effective use of funds
Timing of anticipated returns
Timing of anticipated returns
All of the above
Amount of returns expected
12
Future value interest factors take
Deflation rate
Compounding rate
Inflation rate
Discounting rate
13
Financial management is mainly concerned with
Efficient Management of every business
Arrangement of funds
All aspects of acquiring&utilizing financial resources for firms activities
Profit maximization
14
What is the primary goal of financial management?
To minimise the risk
To maximise the owner’s wealth
To raise profit
To maximise the return
15
The capital budget is associated with.
Long terms assets
Long terms and short terms assets
Short term assets
Fixed assets
16
When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as
Accounting ratio
Costing ratio
Financial ratio
None of the above
17
From the below-mentioned items which are financial assets?
Stocks
B and C
Bonds
Machines
18
financial leverage helps one to estimate _____
business risk
both risks
production risk
financial risk
19
The finance manager is accountable for.
Proper utilisation of funds
Earning capital assets of the company
Arrangement of financial resources
Effective management of a fund
20
What does financial leverage measure?
The sensibility of EPS with % change in the EBIT level
The sensibility of EBIT with % change with respect to output
No change with EBIT and EPS
% variation in the level of production

Financial Management Flashcards | StudBud