Financial Management (CBSE-NET (UGC) Management (Paper-II & Paper-III)): Questions 9 - 12 of 43

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Question number: 9

» Financial Management » Capital Budgeting Decisions- Risk Analysis

Appeared in Year: 2015

MCQ▾

Question

Statement-I: In general, the NPV and IRR methods lead to the same acceptance or rejection decision, when a single project is involved.

Statement-II: The inconsistency in ranking of competing projects as per the NPV and IRR methods lies in the implicit assumptions with regard of different rates of returns on re-investment of intermediate cash flows.

Choices

Choice (4) Response

a.

Statement-I is incorrect, statement-II is correct

b.

The statements I and statement II are correct

c.

Statement-I is correct, statement II is incorrect

d.

The statements I and statement II are incorrect

Question number: 10

» Financial Management » Financial Statements and Analysis

Appeared in Year: 2015

MCQ▾

Question

According to the concept of financial signalling, management behavior results in new debt issue being recorded as ________ News by investor. (December)

Choices

Choice (4) Response

a.

Bad

b.

Risk neutral

c.

Good

d.

Non- Event

Question number: 11

» Financial Management » Working Capital Management

Appeared in Year: 2015

MCQ▾

Question

If raw materials are in store for two months, processing time Equation months, finished goods remain in store for 15 days, debtors are allowed 60 days credit, and credit received from supplier is one month, the operating cycle period is ________. (Dec. )

Choices

Choice (4) Response

a.

6 ½ months

b.

6 months

c.

7 months

d.

5 months

Question number: 12

» Financial Management » Valuation Concepts and Valuation of Securities

Appeared in Year: 2015

MCQ▾

Question

Under the modified accelerated cost recovery system (MACRS) an asset in the’5 years property class would typically be depreciated over how many years? (December)

Choices

Choice (4) Response

a.

7 years

b.

5 years

c.

4 years

d.

6 years

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