Tag: meaning and functions of finance and accounts department

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Questions Related to meaning and functions of finance and accounts department

Multiple choice organisation of commerce and management sources of business finance - 1 finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

Other things remaining the same, an increase in the tax rate on corporate profits will __________________.

  1. Make debt relatively cheaper

  2. Make debt relatively less cheap home

  3. No impact on the cost of debt

  4. We can't say
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Where there is an increase in the tax on corporate profit, the debt becomes relatively cheaper. This is because interest rate is to be paid to the debtors is deducted from the total income before calculating the value of tax. Thus, as the valueof tax increases, the debt becomes relatively cheaper.

Multiple choice organisation of commerce and management sources of business finance - 1 finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

Which one of the following statements regarding 'financial literacy' is not true?

  1. Its objective is to make people aware of the risks and rewards of investments so that they can make an informed choice.

  2. India has a formal nationwide structured financial education programme.

  3. This would enhance the effectiveness and integrity of financial markets.

  4. It reduces the government burden in protecting the common person from elements of market failure.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

While India has various financial literacy initiatives, it does not have a single, unified, formal nationwide structured financial education program that covers the entire population in the way implied by the statement.

Multiple choice organisation of commerce and management sources of business finance - 1 finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

Bancassurance is ___________________.

  1. an insurance scheme to insure bank deposits

  2. an insurance scheme exclusively for the employees banks

  3. a composite financial service offering both bank and insurance products

  4. a bank deposit scheme exclusively for employees of insurance companies
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Bancassurance is a partnership between a bank and an insurance company where the bank sells the insurance company's products to its customer base.

Multiple choice organisation of commerce and management sources of business finance - 1 finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

The _________ aim of financial management is to maximize shareholder's wealth, which is referred to as the wealth maximization.

  1. primary

  2. secondary

  3. final

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

The most widely accepted objective of the firm is to maximize the value of the firm for its owners, that is, to maximize shareholder wealth. Shareholder wealth is represented by the market price of a firm’s common stock.

The shareholder wealth maximization goal states that management should seek to maximize the present value of the expected future returns to the owners (that is, shareholders) of the firm. 

Multiple choice organisation of commerce and management sources of business finance - 1 finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

American Depository Receipts (ADRs) are divided into __________ number of levels.

  1. 1

  2. 2

  3. 3

  4. 4

  5. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

ADR is a dollar denominated negotiable certificate, it represents non-US company;'s Publicly traded equity. ADRs are divided into three levels based on the regulations and privilege of each company's issue. 

Multiple choice organisation of commerce and management sources of business finance - 1 finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

Availability of adequate finance is ___________ for the survival and growth of a business.

  1. optional

  2. very crucial

  3. secondary

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Proper management of working capital is essential to a company’s fundamental financial health and operational success as a business. A hallmark of good business management is the ability to manage the working capital requirements to maintain a solid balance between growth, profitability and liquidity.
Multiple choice commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

As per section 2(51) of the Companies Act, 2013, "Key Managerial Personnel", in relation to a company, means _______.
(i) Chief Executive officer or managing director or manager
(ii) Company Secretary
(iii) General Manager
(iv) Whole Time Director
(v) Chief Legal Officer 
(vi) Chief Financial Officer
The correct answer is -

  1. (i), (ii), (iv) & (vi)

  2. (i), (iii), (iv), (v) & (vi)

  3. (i), (ii), (v) & (vi)

  4. (i), (iv), (v) & (vi)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to Section 2(51) of the Companies Act, 2013, Key Managerial Personnel includes the CEO/MD/Manager, Company Secretary, Whole-time Director, and CFO.

Multiple choice organisation of commerce and management sources of business finance - 1 finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

The basic goal of financial management is ___________.

  1. Maximising the profit

  2. Maximising shareholders' wealth in the long run

  3. Maximising the rate of dividend

  4. Minimising the business risk.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
A company's most important goal is to make money and keep it. Profit-margin ratios are one way to measure how much money a company squeezes from its total revenue or total sales.
Multiple choice commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

Which of the following is the external user of financial statements?

  1. Manager of the business

  2. CEO of the business

  3. Creditor of the business

  4. Controller of the business
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

External users are those outside the organization who use financial statements to make decisions. Creditors use these statements to assess the creditworthiness of the business, unlike managers, CEOs, or controllers who are internal.

Multiple choice commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

Operating and financial leverage are _____________.

  1. Independent

  2. Dependent

  3. Interdependent

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Operating leverage and financial leverage are interdependent because they both affect the total risk and return of the firm. They interact to determine the overall financial structure and earnings per share volatility.