Introduction to Financial Management MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Introduction to Financial Management, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Introduction to Financial Management 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 Introduction to Financial Management mcq questions that explore various aspects of Introduction to Financial Management problems. Each MCQ is crafted to challenge your understanding of Introduction to Financial Management principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Introduction to Financial Management MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Introduction to Financial Management. 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 Introduction to Financial Management knowledge to the test? Let's get started with our carefully curated MCQs!

Introduction to Financial Management MCQs | Page 9 of 12

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Q81.
What important aspects are required to understand the concept and practice of the time value of money?

a.

Only Timing and the amount of each cash flow in a stream

b.

Timing and the amount of each cash flow in a stream, and Future value of each cash flow

c.

Timing and the amount of each cash flow in a stream, Future value of each cash flow, and Present value of each cash flow

d.

Only Intra-year compounding and discounting

Discuss
Answer: (c).Timing and the amount of each cash flow in a stream, Future value of each cash flow, and Present value of each cash flow Explanation:Important aspects required to understand the concept and practice of the time value of money include timing and the amount of each cash flow in a stream, future value of each cash flow, and present value of each cash flow.
Q82.
What does the financial management process and perspectives of an enterprise depend on?

a.

Only Corporate philosophy

b.

Only Financial risk-management policy and practice

c.

Both Corporate philosophy and Financial risk-management policy and practice

d.

Only Financial system of the country

Discuss
Answer: (c).Both Corporate philosophy and Financial risk-management policy and practice Explanation:The financial management process and perspectives of an enterprise depend on both corporate philosophy and financial risk-management policy and practice.
Q83.
What has the Indian Financial System undergone after the opening up of the Indian economy?

a.

Only Introduction to security system

b.

Only Development of Foreign Exchange markets

c.

Revolutionary changes

d.

Only Introduction of convertibility of rupee

Discuss
Answer: (c).Revolutionary changes Explanation:The Indian Financial System has undergone revolutionary changes after the opening up of the Indian economy.
Q84.
What is closely associated with financial management functions in a firm?

a.

Only Financial markets

b.

Only Financial instruments

c.

Only Regulatory framework

d.

Financial system, which mainly consists of financial markets, financial instruments, and relevant regulatory framework

Discuss
Answer: (d).Financial system, which mainly consists of financial markets, financial instruments, and relevant regulatory framework Explanation:Financial system, which mainly consists of financial markets, financial instruments, and relevant regulatory framework, is closely associated with financial management functions in a firm.
Q85.
What does the effectiveness of financial decisions, the main objective of financial management, require?

a.

Only Exposure, experience, and expertise of principles, perspectives, and tools of financial management process

b.

Only Thorough knowledge and complete understanding of financial system

c.

Exposure, experience, and expertise of principles, perspectives, and tools of financial management process, and Thorough knowledge and complete understanding of financial system

d.

Only Exposure to financial risk management

Discuss
Answer: (c).Exposure, experience, and expertise of principles, perspectives, and tools of financial management process, and Thorough knowledge and complete understanding of financial system Explanation:The effectiveness of financial decisions, the main objective of financial management, requires exposure, experience, and expertise of principles, perspectives, and tools of the financial management process, and thorough knowledge and complete understanding of the financial system.
Q86.
What impacts and influences financial decisions?

a.

Perfect investments

b.

Only Financial management process

c.

Only Exposure, experience, and expertise

d.

Both Financial system and Financial environment

Discuss
Answer: (d).Both Financial system and Financial environment Explanation:Both financial system and financial environment impact and influence financial decisions.
Q87.
How is the financial management function in a firm broadly divided?

a.

Accounting, Treasury, and Control functions

b.

Treasury and Risk Management functions

c.

Accounting and Control functions, and Treasury Management functions

d.

Fund Acquisition and Investment functions

Discuss
Answer: (c).Accounting and Control functions, and Treasury Management functions Explanation:The financial management function in a firm is broadly divided into Accounting and Control functions, and Treasury Management functions.
Q88.
What is the relationship between Accounting and Control function and Treasury Management functions?

a.

Inter-dependent

b.

Independent

c.

Closely associated

d.

Only Treasury Management depends on Accounting and Control

Discuss
Answer: (a).Inter-dependent Explanation:Accounting and Control function and Treasury Management functions are inter-dependent.
Q89.
What are the tasks mainly included in Treasury Functions?

a.

Financial and Management Accounting

b.

Budgeting and Budgetary Control

c.

Financial Planning Analysis, Fund Acquisition, Investment Decisions, Fund Allocation and Investment Financing, Cash Management, Financial Risk Management

d.

External Reporting, Tax Planning and Management, MIS and Internal Control

Discuss
Answer: (c).Financial Planning Analysis, Fund Acquisition, Investment Decisions, Fund Allocation and Investment Financing, Cash Management, Financial Risk Management Explanation:Tasks mainly included in Treasury Functions are Financial Planning Analysis, Fund Acquisition, Investment Decisions, Fund Allocation and Investment Financing, Cash Management, and Financial Risk Management.
Q90.
What tasks are mainly included in Finance and Accounting Control functions?

a.

Financial Planning Analysis, Fund Acquisition, Investment Decisions, Fund Allocation and Investment Financing, Cash Management, Financial Risk Management

b.

Financial and Management Accounting, Budgeting and Budgetary Control, External Reporting, Tax Planning and Management, MIS and Internal Control

c.

External Reporting, Tax Planning and Management, MIS and Internal Control

d.

Budgeting and Budgetary Control

Discuss
Answer: (b).Financial and Management Accounting, Budgeting and Budgetary Control, External Reporting, Tax Planning and Management, MIS and Internal Control Explanation:Tasks mainly included in Finance and Accounting Control functions are Financial and Management Accounting, Budgeting and Budgetary Control, External Reporting, Tax Planning and Management, MIS and Internal Control.
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