Financial Management (CBSE-NET (UGC) Management (Paper-II & Paper-III)): Questions 9 - 12 of 14

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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 2½ 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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