Tag: commerce

Questions Related to commerce

_________ plan of action prepared under financial planning reduces waste, duplication of efforts, and gaps in planning.

commerce business finance financial planning financing financial management

  1. Detailed

  2. Short

  3. General

  4. Basic

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Correct Option: A
Explanation:
Financial plan is a comprehensive evaluation of an individual's current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans.
Therefore detailed plan of action is prepared under financial planning reduce waste, duplication of efforts, and gaps in planning.

Working capital is _______________.

commerce business finance financial planning financing financial management

  1. net current assets

  2. net working capital

  3. gross cash inflow

  4. Either (a) or (b)

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Correct Option: D

Working capital is _________.

commerce business finance financial planning financing financial management

  1. gross cash inflow

  2. net cash inflow

  3. gross cash outflow

  4. net cash outflow

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Correct Option: B,D

Working capital is the difference between

commerce business finance financial planning financing financial management

  1. Inflow and outflow of funds

  2. Inflow and outflow of savings

  3. Internal and external capital sources

  4. Gross cash flow and net cash flow

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Correct Option: A

Financial leverage is

commerce business finance financial planning financing financial management

  1. The process of using debt capital to increase the rate of return on equity

  2. The utilisation of current assets to effect disproportionate changes in income

  3. Both (a) and (b)

  4. A relationship between preference share capital and securities

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Correct Option: A

If on account of inadequacy of profits, a company wants to pay dividends out of previous year's reserves, it has to follow the rules made by

commerce business finance financial planning financing financial management

  1. Central Government

  2. State Government

  3. Articles of Association

  4. Memorandum of Association

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Correct Option: A

Choose the correct answer:
(a) Working capital management is an integral part of overall corporate management
(b) There are four tests of working capital policy

commerce business finance financial planning financing financial management

  1. Both (a) and (b) are true

  2. (a) is true, (b) is false

  3. (a) is false, (b) is true

  4. Both (a) and (b) are false

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Correct Option: A

Accumulated profits

commerce business finance financial planning financing financial management

  1. Are the profits possessed by the company on the date of liquidation

  2. Include the amounts of Development Rebate

  3. Are the profits in the hands of the company at the time of distribution of payment

  4. All the above

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Correct Option: D

Factors determining working capital:

commerce business finance financial planning financing financial management

  1. Nature of Industry and the nature of business

  2. Demand of creditors and volume of sales

  3. Cash requirements and inventory turnover

  4. All the above

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Correct Option: D

Cash dividends are ordinarily paid from _______.

commerce business finance financial planning financing financial management

  1. current earnings

  2. retained earnings

  3. paid-in-surplus

  4. capital surplus

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Correct Option: A