Tag: commerce

Quizzes (249) Questions (753)

Questions Related to commerce

Multiple choice commerce business finance financial planning financing financial management

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

  1. Detailed

  2. Short

  3. General

  4. Basic
Reveal answer Fill a bubble to check yourself
A Correct answer
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.
Multiple choice commerce business finance financial planning financing financial management

Working capital is the difference between

  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
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Working capital management involves balancing the inflow and outflow of funds to ensure the company can meet its short-term obligations.

Multiple choice commerce business finance financial planning financing financial management

Financial leverage is

  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
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Financial leverage refers to the use of debt (borrowed capital) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing.

Multiple choice commerce business finance financial planning financing financial management

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

  1. Central Government

  2. State Government

  3. Articles of Association

  4. Memorandum of Association
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under the Companies Act, if a company intends to declare dividends out of reserves due to inadequate profits, it must comply with specific rules and regulations prescribed by the Central Government.

Multiple choice commerce business finance financial planning financing financial management

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

  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
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice commerce business finance financial planning financing financial management

Accumulated profits

  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
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Accumulated profits in a corporate context generally refer to retained earnings, which can include various reserves and development rebates available for distribution or reinvestment.

Multiple choice commerce business finance financial planning financing financial management

Factors determining working capital:

  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
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Working capital requirements are influenced by a wide variety of factors, including the nature of the industry, sales volume, credit policies, and inventory management practices.

Multiple choice commerce business finance financial planning financing financial management

Cash dividends are ordinarily paid from _______.

  1. current earnings

  2. retained earnings

  3. paid-in-surplus

  4. capital surplus
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Cash dividends are typically paid out of the current earnings of the company, reflecting its recent profitability and financial health.