0

Financial Management

Description: Financial Management Financial Management
Number of Questions: 25
Created by:
Tags: Financial Management
Attempted 0/25 Correct 0 Score 0

Which of the following functions of financial management refers to comparison of actual activities related to financial decisions with planned activities?

  1. Financial planning

  2. Budgeting

  3. Financial control

  4. Financial instrument

  5. Source mix


Correct Option: C
Explanation:

This function of financial management refers to the comparison of actual activities related to financial decisions with planned activities.

Which of the following financial statements lists the name of the creditors and the amounts to be paid by the company?

  1. Account receivable statement

  2. Account payable statement

  3. Profit and loss account statement

  4. Statement

  5. Prepared statement


Correct Option: B
Explanation:

This financial statement lists the name of the creditors and the amounts to be paid by the company.

Which of the following tools of financial planning includes preparation of a projected income statement, projected balance sheet, projected fund flow statement, etc?

  1. Financial forecasting

  2. Budgeting

  3. Financial instrument

  4. Source mix

  5. Working capital investment


Correct Option: A
Explanation:

This tool of financial planning includes preparation of a projected income statement, projected balance sheet, projected fund flow statement, etc.

Which of the following functions of financial management refers to the procurement of funds, utilisation of funds and distribution of funds?

  1. Financial planning

  2. Budgeting

  3. Working capital investment

  4. Financial decision

  5. Financial instrument


Correct Option: D
Explanation:

This function of financial management refers to the procurement of funds, utilisation of funds and distribution of funds.

Which of the following financial statements is prepared yearly to find out the gross profit or gross loss of the firm?

  1. Account receivable statement

  2. Profit and loss account statement

  3. Cash transaction statement

  4. Prepared statement

  5. Trading account statement


Correct Option: E
Explanation:

This financial statement is a financial statement prepared yearly to find out the gross profit or gross loss of the firm.

Which of the following functions of financial management is used to refer to working capital investment and long term investment?

  1. Financial planning

  2. Investment decision

  3. Budgeting

  4. Source mix

  5. Financial instrument


Correct Option: B
Explanation:

This function of the financial management is used to refer to working capital investment and long term investment.

Which of the following financial statements is the most important financial statement of the company that shows its position of assets and liabilities on a particular date?

  1. Balance sheet statement

  2. Profit and loss account statement

  3. Account receivable statement

  4. Cash transaction statement

  5. Callable statement


Correct Option: A
Explanation:

This financial statement is the most important financial statement of the company that shows its position of assets and liabilities on a particular date.

Which of the following accounting self evident statements implies that a business unit is separate and distinct from the person who own or controls the business?

  1. Money measurement concept

  2. Accounting period concept

  3. Bussiness entity concept

  4. Convention of materiality

  5. Account receivable statement


Correct Option: C
Explanation:

This accounting self evident statement implies that a business unit is separate and distinct from the person who owns or control the business.

Which of the following functions of the financial statements refers to study of financial health from different interested groups, such as management, employee, suppliers, etc?

  1. Financial instrument

  2. Financial planning

  3. Long term investment

  4. Financial analysis

  5. Data flow analysis


Correct Option: D
Explanation:

This function of the financial management refers to study of financial health from different interested groups, such as management, employees, suppliers, etc.

Which of the following financial statements is a list of financial statements prepared monthly, quarterly or annually to find out the balance of each account?

  1. Account receivable statement

  2. Profit and loss account statement

  3. Cash transaction statement

  4. Prepared statement

  5. Trial balance statement


Correct Option: E
Explanation:

This financial statement is a list of financial statements prepared monthly, quarterly annually to find out the balance of each account.

Which of the following financial concepts provides a blend of financial services on the basis of fee/commission?

  1. Merchant banker

  2. Financial instrument

  3. Financial services

  4. Budgeting

  5. Money measurement concept


Correct Option: A
Explanation:

This financial concept provides a blend of financial services on the basis of fee/commission.

In which of the following functions of financial management, a finance manager has to decide what percentage of profit he has to distribute as dividend among share holders?

  1. Financial planning

  2. Working capital investment

  3. Dividend decision

  4. Financial instrument

  5. Programmed decision


Correct Option: C
Explanation:

In this function of the financial management, a finance manager has to decide what percentage of profit he has to distribute as dividend among share holders.

In which of the following accounting self evident statements, it is assumed that the business will exist for a long time and transactions are recorded on this basis?

  1. Money measurement concept

  2. Going concern concept

  3. Accounting period concept

  4. Convention of consistency

  5. Profit and loss account statement


Correct Option: B
Explanation:

In this accounting self evident statement, it is assumed that the business will exist for a long time and transactions are recorded on this basis.

Which of the following accounting activities attempts to summarise and present data in a predetermined format to various levels of management at regular intervals, for the purpose of evaluating performance?

  1. Financial accounting

  2. Cost accounting

  3. Farm accounting

  4. Cash transaction

  5. Management reporting


Correct Option: E
Explanation:

This accounting activity attempts to summarise and present data in a predetermined format to various levels of management at regular intervals, for the purpose of evaluating performance.

Which of the following tools of the financial planning refers to planning of financial decision that means estimation of total fund requirement to run the concerned organisation?

  1. Budgeting

  2. Working capital investment

  3. Source mix

  4. Capitalisation

  5. Financial services


Correct Option: D
Explanation:

This tool of the financial planning refers to planning of financial decision that means estimation of total fund requirement to run the concerned organisation.

In which of the following accounting concepts, assets are always recorded at acquisition cost or historical cost and that cost becomes the basis for all future accounting for the asset?

  1. Cost concept

  2. Money measurement concept

  3. Accounting period concept

  4. Legal aspect concept

  5. Convention of materiality


Correct Option: A
Explanation:

In this accounting concept, assets are always recorded at acquisition cost or historical cost and that cost becomes the basis for all future accounting for the asset.

Which of the following financial concepts facilitates mobilisation of fund between buyer of the fund and seller of the fund with the help of associate financial intermediaries?

  1. Financial instrument

  2. Financial market

  3. Financial services

  4. Money measurement concept

  5. Financial planning


Correct Option: B
Explanation:

This financial concepts facilitates mobilisation of fund between buyer of the fund and seller of the fund with the help of associate financial intermediaries.

Which of the following accounting activities relates to the use of financial and cost data for the purpose of evaluating the performance of the business?

  1. Financial accounting

  2. Cost accounting

  3. Management accounting

  4. Farm accounting

  5. Cash transaction


Correct Option: C
Explanation:

This accounting activity relates to the use of financial and cost data for the purpose of evaluating the performance of the business.

Which of the following accounting concepts suggests that to find out the profitability, the expenses incurred to generate revenue are to be matched against that revenue?

  1. Accounting period concept

  2. Money measurement concept

  3. Value added concept

  4. Matching concept

  5. Legal aspect concept


Correct Option: D
Explanation:

This accounting concept suggests that to find out the profitability, the expenses incurred to generate revenue are to be matched against that revenue.

Which of the following accounting concepts suggests that incomes and expenses should be recognised as and when they are earned and incurred, irrespective of whether the money is received or paid?

  1. Legal aspect concept

  2. Accrual concept

  3. Accounting period concept

  4. Money measurement concept

  5. Value added concept


Correct Option: B
Explanation:

This accounting concept suggests that incomes and expenses should be recognised as and when they are earned and incurred, irrespective of whether the money is received or paid.

Which of the following accounting concept is used to calculate future value of present receiving?

  1. Present value concept

  2. Money measurement concept

  3. Compounding value concept

  4. Accounting period concept

  5. Value added concept


Correct Option: C
Explanation:

This accounting concept is used to calculate future value of present receiving.

Which of the following functions of the financial management provides long term effect, i.e. up to the life of the project and once taken, cannot be reversed?

  1. Financial planning

  2. Capital budgeting decision

  3. Working capital investment

  4. Financial instrument

  5. Programmed decision


Correct Option: B
Explanation:

This function of the financial management provides long term effect, i.e. up to the life of the project and once taken, cannot be reversed.

Which of the following accounting activities is defined as the measurement and reporting of internal and external information concerning the impact of an entity and its activities on society?

  1. Financial accounting

  2. Cost accounting

  3. Social responsibility accounting

  4. Farm accounting

  5. Government accounting


Correct Option: C
Explanation:

This accounting activity is defined as the measurement and reporting of internal and external information concerning the impact of an entity and its activities on society.

Which of the following transaction is a business transaction where the payment of the receipt of money is postponed to a future date?

  1. Paper transaction

  2. Credit transaction

  3. Cash transaction

  4. Drawing

  5. Transaction


Correct Option: B
Explanation:

This transaction is a business transaction where the payment or the receipt of money is postponed to a future date.

Which of the following accounting activities is the process of identifying and measuring data about people resources and communicating this information to interested parties for decision making?

  1. Financial accounting

  2. Cost accounting

  3. Farm accounting

  4. Financial services

  5. Human resource accounting


Correct Option: E
Explanation:

This accounting activity is the process of identifying and measuring data about people resources and communicating this information to interested parties for decision making.

- Hide questions