Finance Management (Computer's Eng..) MCQ's




Question 91 :
Why deferred tax liability arrises?

  1. The difference between cash and profit.
  2. The temporary differences between taxable income and accounting profit.
  3. The difference sales and profit.
  4. The difference cost of goods sold and profit.
  

Question 92 :
What is meant by Assets?

  1. Assets are Firm’s own equity Shares.
  2. Assets are resources which are expected to provide a firm with future economic benefit.
  3. Assets represent obligations that are expected to mature within year.
  4. Assets are the differences between taxable income and accounting profit.
  

Question 93 :
Financial institutions expect that

  1. moral hazard will occur, as the least desirable credit risks will be the ones most likely to seek out loans
  2. opportunistic behavior will occur, as the least desirable credit risks will be the ones most likely to seek out loans
  3. borrowers will commit moral hazard by taking on too much risk, and this is what drives financial institutions to take steps to limit moral hazard
  4. Option 1 and 3
  

Question 94 :
Future value interest factor takes

  1. compound rate
  2. deflation rate
  3. discounting rate
  4. inflation rate
  

Question 95 :
What the Cash flow statement Portrays?

  1. The financial position of a firm at a given point of time.
  2. The performance of a firm over a period of time
  3. The flow of cash through the business during a given accounting period.
  4. The flow of cash through the business during three months.
  

Question 96 :
An important financial institution that assists in the initial sale of securities in the primary market is the

  1. Investment bank.
  2. Co-operative bank
  3. IRDA
  4. RBI
  

Question 97 :
Bonds that are sold in a foreign country and are denominated in that country’s currency are known as

  1. foreign bonds
  2. Eurobonds
  3. Eurocurrencies
  4. Eurodollars
  

Question 98 :
Funds required for purchasing current assets is an example of

  1. Fixed capital requirement
  2. Ploughing back of profits
  3. Working capital requirement
  4. Lease financing
  

Question 99 :
Which of the following is a not money market security

  1. National Savings Certificates
  2. Treasury bill
  3. Certificate of deposit
  4. Commercial paper
  

Question 100 :
Which of the following would be considered a application of funds?

  1. a decrease in accounts receivable
  2. a decrease in cash.
  3. an increase in account payable
  4. an increase in cash
  
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