The liability which should be paid within a period of one year is known as a/an:
Correct answer is: B. Current liability
Financial Management Mcqs
here are key Multiple Choice Questions (MCQs) on Financial Management, covering core topics like capital budgeting, cost of capital, and financial analysis.
Having a __________ level of future wealth (from more savings) requires you to sacrifice by having a __________ level of spending today.
Correct answer is: B. Higher; lower
The ability of a firm to convert an asset into cash quickly without significant loss of value is called ____________.
Correct answer is: B. Liquidity
The value of an option at the time of expiration is a function of:
Correct answer is: B. Stock price and exercise price
The excess of current assets over current liabilities is known as:
Correct answer is: D. Net working capital
Which of the following has the highest claim on assets in liquidation?
Correct answer is: C. Debenture holders
Which of the following is a microeconomic variable that helps define the discipline of finance?
Correct answer is: D. Risk and return and capital structure
Which of the following would increase the break-even output level?
Correct answer is: C. Higher production costs per unit of output
What is the objective of working capital management?
Correct answer is: B. Maintain optimal balance of current assets and liabilities
A project has an IRR higher than the cost of capital. What should the firm do?
Correct answer is: C. Accept
What is the cost of retained earnings compared to cost of equity?
Correct answer is: C. Generally equal but no flotation cost
Which is not a capital budgeting technique?
Correct answer is: D. Current ratio
Current ratio is liquidity measure.