1. From the given alternatives, which one is not the quality of Finance Manager ?

A. intelligence

B. positive thinker

C. good looking

D. decision maker

Correct : C. good looking

2. The operating budget which is usually prepared in terms of revenue and expenses is known as ?

A. master budget

B. cash budget

C. sales budget

D. production budget

Correct : B. cash budget

3. From the Given alternatives, Which is the example of Direct Cost ?

A. purchase of raw material

B. advertising expenses

C. office rent

D. legal expenses

Correct : A. purchase of raw material

4. From the Given alternatives, Which is the example of Fixed Cost ?

A. salesman commission

B. purchase of raw material

C. factory rent

D. overtime wages

Correct : C. factory rent

5. From the Given alternatives, Which is the example of Selling and Distribution Cost ?

A. depreciation on delevery van

B. free samples

C. showroom rent

D. all three alternatives

Correct : D. all three alternatives

6. Sales in 1st Quarter of 2019, is achieved at 200 units at selling price of Rs. 40 per unit. If budget for second quarter is anticipated at, increase in units by 10% and Selling price by 25%, What would be budgeted Sales for second quarter ?

A. rs. 11,000

B. rs. 10,800

C. rs. 10,000

D. rs. 9,000

Correct : A. rs. 11,000

7. If total cost of production for a product is Rupees 80 per unit, And company want to achieve 20% profit on sale, Then what would be selling price per unit ?

A. rs. 96 per unit

B. rs. 100 per unit

C. rs. 64 per unit

D. rs. 108 per unit

Correct : B. rs. 100 per unit

8. Advertiing expenses are divided between North, West and South Zone in the ratio of 5:9:4 respectively. If total Advertising expenses are Rs. 3,60,000, How much should be allocated to West Zone ?

A. rs. 80,000

B. rs. 1,00,000

C. rs. 1,80,000

D. rs. 20,000

Correct : C. rs. 1,80,000

9. In capital budgeting, term NPV method stands for ?

A. non profit volume method

B. net present value method

C. neo pricing value method

D. nil present value method

Correct : B. net present value method

10. Equity Share Cpaital is also known as ?

A. short term capital

B. borrowed capital

C. lease finance

D. own capital

Correct : D. own capital

11. Which type of debentures are repaid by the company within or at the end of specified period ?

A. reedemable debentures

B. convertible debentures

C. secured debentures

D. bearer debentures

Correct : A. reedemable debentures

12. In Marginal Costing, what will happen to Break Even Point [BEP,] if Fixed Cost is increased by 10% ?

A. bep will increase

B. bep will decrease

C. bep will change by 10%

D. bep will remain constant

Correct : A. bep will increase

13. What will you get by using the formula:- Contribution/Sales x 100 ?

A. break even point

B. margin of safety

C. profit volume ratio

D. profit at given sales

Correct : C. profit volume ratio

14. If Profit Volume ratio is 25% and Fixed Cost is Rs. 3,00,000 then, what would be Break Even Sales ?

A. rs.75,000

B. rs. 2,25,000

C. rs. 3,75,000

D. rs.12,00,000

Correct : D. rs.12,00,000

15. Direct and Indirect Cost are the classifications based on which type ?

A. basis of function

B. basis ot teceability

C. basis of behaviour

D. basis of element

Correct : B. basis ot teceability

16. Shareholders Wealth is calculate by which formula ?

A. total profit/ no of shares

B. no. of shares x market value per share

C. total assets - total long term liabilities

D. dividend paid to shareholders

Correct : B. no. of shares x market value per share

17. The minimum rate of return that a firm must earn in order to satisfy the expectations of its investor is called as ?

A. cost of capital

B. return on investment

C. business cpaital

D. finance

Correct : A. cost of capital

18. If Companies Current assets are valued at Rs. 4,50,000 and current liabilies are valued at Rs. 3,00,000 then, What is the current ratio of the company ?

A. 1.5 : 1

B. 1:1.5

C. rs. 1,50,000

D. 0.6667

Correct : A. 1.5 : 1

19. Debtors turtnover ratio of Company 'A' is 30 days. Company 'B' from same industry has Debtor turnover ratio as 45 days. What does this indicate?

A. no. of debtors of company \a\ are less as compared to debtors of company "b"

B. turnover of company \a\ is more than that of company \b\

C. debtor recovery of company \a\ is better than company \b\

D. company \b\ is a loss making company

Correct : C. debtor recovery of company \a\ is better than company \b\

20. If current liabilities of a company is Rs. 1,00,000 and working capital is Rs.2,50,000; What would be the amount of current assets of the company ?

A. rs. 1,50,000

B. rs. 2,50,000

C. rs. 1,00,000

D. rs. 3,50,000

Correct : D. rs. 3,50,000

21. Simple Payback Method' is used in which kind of budgeting ?

A. sales budgeting

B. capital budgeting

C. production budgeting

D. cash budgeting

Correct : B. capital budgeting

22. Cash sales of the company is Rs. 10,00,000 and Credit sales is Rs. 25,00,000. What would be Gross Prfit Ratio of the company if Gross profit amounts to Rs. 5,25,000 ?

A. 21.00%

B. 0.525

C. 15.00%

D. 35.00%

Correct : C. 15.00%

23. By using the formula, [Opening Stock + Purchases - Closing Stock] what we get as a result ?

A. cost of goods sold

B. average cost

C. turnover

D. gross profit

Correct : A. cost of goods sold

24. When Current Liabilities are deducted from Current Assets, we get ?

A. current ratio

B. cash balance

C. working capital

D. net assets

Correct : C. working capital

25. From the given alternatives, Which is the exmple of Owed Fund ?

A. general reserves

B. right shares

C. 9% preference shares

D. 8% debentures

Correct : D. 8% debentures

Quiznetik

Financial Management For Marketing and Advertising | Set 1