CCE-202 GC – 08 Financial Management

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MBA-I SEM-II 2021-22 CCE

S. P. Mandali's
Prin. N.G.Naralkar Institute of Career Development & Research
536 Shaniwar Peth, Appa Balwant Chowk (ABC Chowk) Pune-411030

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CCE-202 GC – 08 Financial Management

MBA-I SEM-II 2021-22 CCE

Approaches of financial Management are classified into ---- categories

One

Two

Three

Four

Clear selection

The main limitation of Traditional Approach are

Ignored routine problems and ignored working capital financing

No emphasis of allocation of funds

Time value of money is not considered

All of the above

Clear selection

The main Objective of __is to earn a larger amount of profit.

Wealth maximization

Profit maximization

Financial Management

None of the above

Clear selection

Financial Planning deals with--------

Preparation of financial statements

Planning for a capital issue

Preparing Budgets

All of the above

Clear selection

---- is a quantities aspect of the financial planning of an organisation .It means total amount of securities issued by a company

Capital Arrangement

Capitalisation

Capital Structure

Capital Management

Clear selection

Market values are often used in computing the weighted average cost of capital because _____________

this is the simplest way to do the calculation.

this is consistent with the goal of maximizing shareholder value.

this is required by the Securities and Exchange Commission.

this is a very common mistake.

Clear selection

A ----- is a combination of various types of securities such as Equity Shares, Preference Shares, Debentures, Loans from Banks & financial institutions

Simple Capital structure

Compound Capital structure

Complex Capital structure

Only ‘A’ and ‘C’

Clear selection

Tax-rate is relevant and important for calculation of specific cost of capital of ------

Equity Share Capital

Preference Share Capital

Debentures

‘A’ and ‘B’ Only

Clear selection

Statement of Changes in Owner’s Equity is also called as ___________

Statement of Affairs

Statement of Changes in Financial Position

Statement of Retained Earnings

None of the above

Clear selection

Users of Financial Statements are ----

Management & internal users

Investors & debtors

Creditors,Lenders,Credit agencies and regulatory authority

All of the above

Clear selection

The objective/s of Financial statement Analysis is/are

Assessment of Past performance and Assessment of current position

Assessment of the operational efficiency and prediction of profitability and growth prospects

Prediction of bankruptcy and failure

All of the above

Clear selection

The major limitations of financial statement analysis are as follows _____________.

Completely ignores current costs and analysis may be affected by the personal bias of analyst.

Financial Statements are essentially interim reports and is only a means, not an end.

It completely ignores the facts, which cannot be expressed in terms of money

All of the above

Clear selection

Traditional methods of Capital Budgeting include/s

Pay-back Period Methods

Post Pay – back methods

Accounts Rate of Return

All of the above

Clear selection

________ is a method of calculating present value of cash inflows and cash outflows.

PBP

IRR

ARR

NPV

Clear selection

The formula of Profitability Index (PI) is ______________ .

PI = Present Value of Cash Inflows – Present Value of Cash Outflows

PI = Present Value of Cash Inflows ÷ Present Value of Cash Outflows

PI = Present Value of Cash Inflows + Present Value of Cash Outflows

PI = Present Value of Cash Inflows × Present Value of Cash Outflows

Clear selection

The example of capital expenditure ------

Purchase of fixed assets such as land and building, Plant and machinery, goodwill etc.,

The expenditure relating to addition, expansion, improvement and alteration to the fixed assets

The replacement of fixed assets and research and development project

All of the above

Clear selection

A firm’s operating cycle is equal to its inventory turnover in days (ITD) ___

plus its receivable turnover in days (RTD).

Minus its RTD.

Plus its RTD minus its payable turnover in days (PTD).

Minus its RTD minus its PTD.

Clear selection

--- is represented by the total current assets

Gross Working Capital

Net Working Capital

Fixed Working Capital

Variable Working Capital

Clear selection

Causes and effects of excessive working capital are ______________.

Excessive Working Capital leads to unnecessary accumulation of raw materials components and spares

Excessive Working Capital results in locking up of excess Working Capital

It creates bad debts, reduces collection periods, and leads to reduce the profits

All of the above

Clear selection

Working capital is also called as,

Recurring Capital

Regular Capital

Circulating Capital

None of the above

Clear selection

Traditional approach consists of the ______________.

Arrangement of funds from lending body, i.e., from financial institutions.

Arrangement of funds through various financial instruments like share, bonds etc.

Finding out the various sources of funds.

All of the above

Clear selection

The key strategies of financial management are ______________.

Determining Financial Needs, Determining Sources of Funds, Optimal Capital Structure.

Profit Planning and Control, Project Planning and Evaluation, Capital Budgeting and Financial Analysis

Cost-Volume-Profit Analysis, Fixed Assets Management, Working Capital Management and Dividend Policies

All of the above

Clear selection

Factors to be considered in capital budgeting are ______________

Cash Inflows.

Time Estimates.

Cash Outflows

All of the above

Clear selection

Components of Capital Structure are classified into ______________.

Equity Capital and Preference Capital

Debentures and Bonds

Retained Earnings and Term Loans

Owners’ Capital and Borrowed Capital

Clear selection

Traditional Methods of Capital Budgeting are also called as ______________

Non-discount methods

Discount methods

Old Methods

Ancient Methods

Clear selection

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