MCQOPTIONS
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MCQOPTIONS
This section includes 233 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 201. |
The finance manager is accountable for. |
| A. | earning capital assets of the company |
| B. | effective management of a fund |
| C. | arrangement of financial resources |
| D. | proper utilization of funds |
| Answer» D. proper utilization of funds | |
| 202. |
Which is the following main decision taken by the financial manager in a company? |
| A. | income decision |
| B. | financing decision |
| C. | appraisal decision |
| D. | budget decision |
| Answer» C. appraisal decision | |
| 203. |
Which of the following is not a function of finance manager? |
| A. | mobilization of funds |
| B. | deployment of funds |
| C. | control over use of funds |
| D. | manipulate share price of the company |
| Answer» E. | |
| 204. |
Finance Function comprises |
| A. | safe custody of funds only |
| B. | expenditure of funds only |
| C. | procurement of finance only |
| D. | procurement & effective use of funds |
| Answer» E. | |
| 205. |
Business finances is concerned with _________ funds and _______ funds from different sources. |
| A. | estimation of funds |
| B. | raising of funds |
| C. | short term finance |
| D. | both a & b |
| Answer» E. | |
| 206. |
Business finance refers to ...... and ........ employed in a business. |
| A. | money |
| B. | credit |
| C. | both a & b |
| D. | none of the above |
| Answer» D. none of the above | |
| 207. |
Which from the following is NOT an example of intangible assets? |
| A. | trademarks |
| B. | patents |
| C. | buildings |
| D. | technical expertise |
| Answer» D. technical expertise | |
| 208. |
The conflict of interest between stockholders and management is known as: |
| A. | agency problem |
| B. | interest conflict |
| C. | management conflict |
| D. | agency cost |
| Answer» B. interest conflict | |
| 209. |
The following are the examples of financial assets except? |
| A. | stocks |
| B. | bank loan |
| C. | bond |
| D. | raw material |
| Answer» E. | |
| 210. |
Balance Sheet is based upon which of the following formula? |
| A. | assets = liabilities – stockholder’s equity |
| B. | assets + liabilities = stockholder’s equity |
| C. | assets + stockholder’s equity = liabilities |
| D. | assets = liabilities + stockholder’s equity |
| Answer» E. | |
| 211. |
Which of the following statement is considered as the accountant’s snapshot of firm’s accounting value as of a particular date? |
| A. | income statement |
| B. | balance sheet |
| C. | cash flow statement |
| D. | retained earning statement |
| Answer» C. cash flow statement | |
| 212. |
Who of the following make a broader use of accounting information? |
| A. | accountants |
| B. | financial analysts |
| C. | auditors |
| D. | marketers |
| Answer» C. auditors | |
| 213. |
Which of the following refers to the difference between the sale price and cost of inventory? |
| A. | net loss |
| B. | net worth |
| C. | markup |
| D. | markdown |
| Answer» D. markdown | |
| 214. |
Finance is vital for which of the following business activity (activities)? |
| A. | marketing research |
| B. | product pricing |
| C. | design of marketing and distribution channels |
| D. | all of the given options |
| Answer» E. | |
| 215. |
Business Finance addresses which of the following? |
| A. | capital budgeting |
| B. | capital structure |
| C. | working capital management |
| D. | all of the given options |
| Answer» E. | |
| 216. |
Which of the following is measured by profit margin? |
| A. | operating efficiency |
| B. | asset use efficiency |
| C. | financial policy |
| D. | dividend policy |
| Answer» B. asset use efficiency | |
| 217. |
Which of the given area is NOT addressed by Business Finance? |
| A. | financing |
| B. | investing |
| C. | managing day today expenses |
| D. | none of the given options |
| Answer» E. | |
| 218. |
Which of the following options is not recorded in the Balance sheet? |
| A. | cash |
| B. | rent expenses |
| C. | building |
| D. | goodwill |
| Answer» C. building | |
| 219. |
Bills Receivables appear in a Company’s Balance Sheet under the Sub-head …………………….. |
| A. | current investments |
| B. | cash equivalents |
| C. | trade receivables |
| D. | short term loans and advances |
| Answer» D. short term loans and advances | |
| 220. |
Calls in advance appear in a Company’s Balance Sheet under ……………….. |
| A. | share capital |
| B. | current liability |
| C. | long-term borrowings |
| D. | reserve & surplus |
| Answer» C. long-term borrowings | |
| 221. |
Calls in Arrears appear in a Company’s Balance Sheet under ……………….. |
| A. | reserve & surplus |
| B. | shareholder’s funds |
| C. | contingent liabilities |
| D. | short-term borrowings |
| Answer» C. contingent liabilities | |
| 222. |
According to prescribed order of assets in a Company’s Balance Sheet ……………………… assets should be shown first of all. |
| A. | non-current assets |
| B. | current assets |
| C. | current investments |
| D. | loans and advances |
| Answer» B. current assets | |
| 223. |
Which of the following is not required to be prepared under the Companies Act? |
| A. | statement of profit and loss |
| B. | balance sheet |
| C. | report of director’s and auditor’s |
| D. | funds flow statement |
| Answer» E. | |
| 224. |
As per Companies Act, the Balance Sheet of a company is required to be presented in ……………………… |
| A. | horizontal form |
| B. | vertical form |
| C. | either horizontal or vertical form |
| D. | neither of the above |
| Answer» C. either horizontal or vertical form | |
| 225. |
Balance sheet of a company is required to be prepared in the format given in ……………………… |
| A. | schedule iii part ii |
| B. | schedule iii part i |
| C. | schedule iii part iii |
| D. | table a |
| Answer» C. schedule iii part iii | |
| 226. |
Subtracting all expenses from revenues yields? |
| A. | net profit / net loss |
| B. | carrying value |
| C. | long term assets |
| D. | net liabilities |
| Answer» B. carrying value | |
| 227. |
Which statement shows the flow of cash and cash equivalents during the financial period? |
| A. | statement of changes in equity |
| B. | cash flow statement |
| C. | balance sheet |
| D. | income statement |
| Answer» C. balance sheet | |
| 228. |
Which of the following is true about financial statements? A) Financial statement gives a summary of accounts. B) Financial statements can be stated as recorded facts. |
| A. | only a |
| B. | only b |
| C. | both a and b |
| D. | none of the above |
| Answer» D. none of the above | |
| 229. |
P&L statement is also known as |
| A. | statement of operations |
| B. | statement of income |
| C. | statement of earnings |
| D. | all of the above |
| Answer» C. statement of earnings | |
| 230. |
The term ‘Financial Statement’ covers |
| A. | profit & loss statement |
| B. | balance sheet and profit & loss statement appropriation account |
| C. | profit & loss statement and balance sheet |
| D. | all of above are false |
| Answer» D. all of above are false | |
| 231. |
Which report gives a review on the profitability of a business? |
| A. | statement of changes in equity |
| B. | cash flow statement |
| C. | balance sheet |
| D. | income statement |
| Answer» E. | |
| 232. |
Funds are required for the.......... |
| A. | purchase of land & building |
| B. | purchase of machinery |
| C. | purchase of another fixed asset |
| D. | all of the above |
| Answer» E. | |
| 233. |
Business finance includes........ |
| A. | procurement of funds and utilization of funds |
| B. | management of funds |
| C. | allocation |
| D. | insurance |
| Answer» B. management of funds | |