Q. Which of the following is not a component of current assets?
✅ Correct Answer: (C)
Bills Payables
Functional Areas of Business MCQs and Notes
Q. The extent to which the firm has fixed financing costs arising from the use of debt is measured by
✅ Correct Answer: (C)
Financial leverage
Q. The only viable goal of financial management is:
✅ Correct Answer: (B)
Wealth maximization
Q. Short-term finance is required to meet the expenses for-
✅ Correct Answer: (A)
Payment of wages and salaries
Q. The important factors that to be considered for dividend policy includes-
✅ Correct Answer: (D)
All of the above
Q. ______________ management refers to current assets management which effects the firm’s liquidity and solvency
✅ Correct Answer: (A)
Working capital
Q. The objectives of financial management includes-
✅ Correct Answer: (A)
Procurement of funds
Q. _______________ involves the decision of allocation of capital or commitment of funds to long-term assets that would yield benefits in the future
✅ Correct Answer: (B)
Capital budgeting
Q. One of the sources of seasonal working capital is
✅ Correct Answer: (C)
Indigenous Bankers
Q. ________________ calls for skillful planning, control and execution of a firm’s activities
✅ Correct Answer: (B)
finance function