Budgeting and Cash Flow Estimation MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Budgeting and Cash Flow Estimation, a fundamental topic in the field of Financial Management and Financial Markets. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Budgeting and Cash Flow Estimation MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Budgeting and Cash Flow Estimation mcq questions that explore various aspects of Budgeting and Cash Flow Estimation problems. Each MCQ is crafted to challenge your understanding of Budgeting and Cash Flow Estimation principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Financial Management and Financial Markets tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Budgeting and Cash Flow Estimation MCQs are your pathway to success in mastering this essential Financial Management and Financial Markets topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Budgeting and Cash Flow Estimation. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Budgeting and Cash Flow Estimation knowledge to the test? Let's get started with our carefully curated MCQs!

Budgeting and Cash Flow Estimation MCQs | Page 3 of 9

Q21.
The number of years forecasted to recover an original investment is classified as
Discuss
Answer: (a).payback period
Q22.
In capital budgeting, the term of bond which has great sensitivity to interest rates is
Discuss
Answer: (a).long-term bonds
Q23.
The process in which the managers of the company identify projects to add value is classified as
Discuss
Answer: (a).capital budgeting
Q24.
A discount rate which is equal to the present value of TV to the project cost present value is classified as
Discuss
Answer: (b).modified internal rate of return
Q25.
An uncovered cost at the start of the year is $300, full cash flow during recovery year is $650 and prior years to full recovery is 4 then payback would be
Discuss
Answer: (d).4.46 years
Q26.
The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be
Discuss
Answer: (b).zero
Q27.
The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be
Discuss
Answer: (b).1.82
Q28.
The profitability index in capital budgeting is used for
Discuss
Answer: (c).evaluate projects
Q29.
Other factors held constant, the greater project liquidity is because of
Discuss
Answer: (c).shorter payback period
Q30.
In calculation of internal rate of return, an assumption states that received cash flow from the project must
Discuss
Answer: (a).be reinvested
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