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 4 of 9

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Q31.
In capital budgeting, the number of non-normal cash flows having internal rate of returns are
Discuss
Answer: (b).multiple
Q32.
An internal rate of return in capital budgeting can be modified to make it the representative of
Discuss
Answer: (d).relative profitability
Q33.
The situation in which the firm limits the expenditures on capital is classified as
Discuss
Answer: (b).capital rationing
Q34.
The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is
Discuss
Answer: (b).16000
Q35.
A project which have one series of cash inflows and results in one or more cash outflows is classified as
Discuss
Answer: (b).normal cash flows
Q36.
The present value of future cash flows is divided by an initial cost of the project to calculate
Discuss
Answer: (d).profitability index
Q37.
If the net present value is positive then the profitability index will be
Discuss
Answer: (d).greater than one
Q38.
The cash flows occurring with more than one change in sign of cash flow are classified as
Discuss
Answer: (a).non-normal cash flow
Q39.
The first step in calculation of net present value is to find out
Discuss
Answer: (c).present value cash flow
Q40.
The situation in which one project is accepted while rejecting an other project in comparison is classified as
Discuss
Answer: (b).mutually exclusive
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