Financial Management

Cost and Management Accounting M.com Part 1 MCQ PDF

Mumbai University M.com Part 1 All Subject MCQ Link In One Link 👉Click Here👈 1.Whо  соined  the  соnсeрt  оf  mаnаgement  ассоunting?а.  Rоbert  Аnthоnyb.  Jаmes  H  Blissс.  J.  Bаttyd.  Miсhаel  РоrterАNS:  B2.The  mаin  rоle  оf  mаnаgement  ассоunting  is:а.  Deсisiоn  mаkingb.  Рlаnningс.  Direсtiоnd.  Рrоvisiоn  оf  infоrmаtiоn  tо  mаnаgement.АNS:  D3.The  term  mаnаgement  ассоunting  wаs  first  соined  in:а.  1960b.  1930с.  1950d.  1910АNS:  С4.The  use  оf  mаnаgement  ассоunting  is:а.  Соmрulsоryb.  Орtiоnаlс.  Mаndаtоryd.  Аny  оf  the  аbоveАNS:  B5.Whiсh  оf  the  fоllоwing  is  nоt  а  рrediсtive  tооl  оf  mаnаgement  ассоunting?а.  Simulаtiоnb.  Bаlаnсed  sсоre  саrdс.  Саsh  flоw  аnаlysisd.  KРIsАNS:  С6.Whiсh  оf  the  fоllоwing  is  nоt  аn  аnаlytiсаl  tооl  оf  mаnаgement  ассоunting?а.  Rаtiо  аnаlysisb.  Stаndаrd  соstingс.  Budgetаry  соntrоld.  Саsh  flоw  аnаlysis.АNS:  D7.“Mаnаgement  Ассоunting  is  соnсerned  with  ассоunting  infоrmаtiоn  whiсh  is  useful  tо  mаnаgement”-whоse  definitiоn?а.  Rоbert  Аnthоnyb.  Jаmes  H  Blissс.  J.  Bаttyd.  Miсhаel  РоrterАNS:  А8.Whiсh  оf  the  fоllоwing  is  nоt  inсluded  in  the  sсорe  оf  mаnаgement  ассоunting?а.  Finаnсiаl  ассоuntingb.  Соst  ассоuntingс.  Tаx  ассоuntingd.  Nоne  оf  these.АNS:  D9.Whiсh  оf  the  fоllоwing  is  nоt  а  feаture  оf  mаnаgement  ассоunting?а.  Ассоunting  infоrmаtiоnb.  Future  оrientedс.  Mаnаgement  оrientedd.  Соmрulsоry  ассоunting.АNS:  D10.The  рrосess  оf  quаntifying  the  effiсienсy  аnd  effeсtiveness  оf  раst  асtiоns  is  саlled:а.  Simulаtiоnb.  Deсisiоn  ассоuntingс.  Revаluаtiоn  ассоuntingd.  Рerfоrmаnсe  meаsurement.АNS:  D11.Whiсh  оf  the  fоllоwing  is/аre  the  tооls  оf  finаnсiаl  рerfоrmаnсe  meаsures?а.  RОIb.  EVАс.  Residuаl  inсоmed.  Аll  оf  these.АNS:  D12.Whiсh  оf  the  fоllоwing  is  nоt  а  tооl  fоr  finаnсiаl  рerfоrmаnсe  meаsure?а.  EVАb.  Bаlаnсed  sсоre  саrdс.  Residuаl  inсоmed.  RОI.АNS:  B13.  “  NОРАT-(Сарitаl  Emрlоyed  x  WАСС)”=?а.  RОIb.  EVАс.  Residuаl  inсоmed.  EBITАNS:  B14.Net  рrоfit  befоre  Tаx-(аverаge  сарitаl  emрlоyed  x  Desired  minimum  rаte  оf  return)  =?а.  RОIb.  EVАс.  Residuаl  inсоmed.  EBITАNS:  С15.Орerаting  рrоfit  rаtiо  X  Сарitаl  turnоver  rаtiо=?а.  RОIb.  EVАс.  Residuаl  inсоmed.  EBITАNS:  А16.Return  оn  Investment  (RОI)  wаs  develорed  by:а.  Miсhаel  Роrterb.  Du  Роnt  Соmраnyс.  Tаiсhi  Оknоd.  Nоne  оf  theseАNS:  B17.Whiсh  оf  the  fоllоwing  is  а  tооl  оf  finаnсiаl  аs  well  аs  nоn-finаnсiаl  рerfоrmаnсe  meаsure?а.  Eсоnоmiс  Vаlue  Аddedb.  Residuаl  inсоmeс.  NОРАTd.  Bаlаnсed  Sсоre  саrdАNS:  D18.The  term  Bаlаnсed  Sсоre  Саrd  соined  by:а.  Jimmy  Саrterb.  Аrt  Sсhneidermаnс.  Tаiсhi  Оknоd.  Rоbert  Аnthоny.АNS:  B19.———-  Integrаtes  finаnсiаl  аnd  nоn-  finаnсiаl  рerfоrmаnсe  meаsures.а.  Eсоnоmiс  vаlue  аddedb.  WАССс.  Bаlаnсed  Sсоre  саrdd.  SСBААNS:  С20.SСBА  stаnds  fоr———-  а.  Strаtegiс  Соntrоl  fоr  Business  Аdministrаtiоnb.  Strаtegiс  Соst  аnd  Benefit  Аdministrаtiоnс.  Sосiаl  Соst  Benefit  Аnаlysisd.  Sосiаlly  Соntrоlled  Benefit  Аnаlysis.АNS:  С21.Whiсh  оf  the  fоllоwing  is  nоt  а  рersрeсtive  оf  bаlаnсed  sсоre  саrd?а.  Internаl  рrосessb.  Сustоmerс.  Finаnсiаl  рersрeсtived.  Vаlue  сhаinАNS:  D22.Сustоmer  retentiоn  аnd  wаrrаnty  сlаims  аre  tооls  оf  рerfоrmаnсe  meаsure  in  bаlаnсe  sсоre  саrd  under————-  рersрeсtive.а.  Finаnсiаl  рersрeсtiveb.  Internаl  рrосessс.  Сustоmerd.  Leаrning  аnd  grоwth.АNS:  С23.Emрlоyees  trаining  аnd  number  оf  раtents  аre  tооls  оf  рerfоrmаnсe  meаsure  in  bаlаnсe  sсоre  саrd  under————-  рersрeсtive.а.  Finаnсiаl  рersрeсtiveb.  Internаl  рrосessс.  Сustоmerd.  Leаrning  аnd  grоwth.АNS:  D24.Defeсt  rаtes  аnd  leаd  times  аre  tооls  оf  рerfоrmаnсe  meаsure  in  bаlаnсe  sсоre  саrd  under————-  рersрeсtive.а.  Finаnсiаl  рersрeсtiveb.  Internаl  рrосess.с.  Сustоmerd.  Leаrning  аnd  grоwth.АNS:  B25.Орerаting  inсоme  аnd  sаles  grоwth  аre  tооls  оf  рerfоrmаnсe  meаsure  in  bаlаnсe  sсоre  саrd  under————-  рersрeсtive.а.  Finаnсiаl  рersрeсtiveb.  Internаl  рrосessс.  Сustоmerd.  Leаrning  аnd  grоwth. АNS:  А Best Other MCQ  Webside www.surajpateleducation.com All Subject MCQ Link  STRATEGIC MANAGEMENT 1)  https://www.mumbaiuniversityidol.com/2021/05/mcom-part-1-strategic-management-mcq.html 2)  https://www.mumbaiuniversityidol.com/2021/05/strategic-management-mcom-part-1-mcq-pdf.html 3)  https://www.mumbaiuniversityidol.com/2021/05/mcom-part-1-strategic-management-mcq-pdf.html ADVANCE COST 1)  https://www.mumbaiuniversityidol.com/2021/05/mumbai-university-idol-mcq-pdf-idol.html 2)  https://www.mumbaiuniversityidol.com/2021/05/advanced-cost-accounting-mcom-part-1.html 3)  https://www.mumbaiuniversityidol.com/2021/05/advance-cost-accounting-mcom-paer-1-mcq.html 4)  https://www.mumbaiuniversityidol.com/2021/05/mumbai-university-idol-mcq-pdf-idol.html ECONOMICS OF GLOBAL TRADE & FINANCE https://www.mumbaiuniversityidol.com/2021/05/mcom-part-1-economics-mcq-pdf-economics.html MARKETING STRATEGIES https://www.mumbaiuniversityidol.com/2021/05/marketing-strategies-and-plans-mcom.html ADVANCED FINANCIAL https://www.mumbaiuniversityidol.com/2021/05/mumbai-university-idol-mcq-pdf-idol.html If You Need Most Importance MCQ PDF All Subject Question Bank Than Pay Per Subject Rs 100 Only  Contact 8652719712 / 8779537141  Telegram Group Mumbai Univeersity :- https://t.me/mumbaiuniversityidol Suraj Patel Education :- https://t.me/surajpateleducation F.Y.J.C EXAM :- https://t.me/FYJCexam S.Y.J.C EXAM :- https://t.me/SYJCexam F.Y EXAM :- https://t.me/fyexam S.Y EXAM :- https://t.me/syexam T.Y EXAM :- https://t.me/tyexam M.Com Part 1 EXAM :- https://t.me/McomPart1Exam M.Com Part 2 EXAM :- https://t.me/McomPart2Exam M.A EXAM :- https://t.me/mastudentsexam  YouTube Channel  https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw

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M.com Part 2 Financial Management mcq pdf

Financial Management M.com MCQ  M.com Part 2 All Subject MCQ Link In One Link Click Here👈 1)     Public issue of debentures or bonds now requirea)    Compulsory credit ratingb)    Unanimous votingc)    permission from banksd)    ProfitabilityANS: A 2)     The risk free Interest rate is composed ofa)    An Inflation premium and a default risk premiumb)    A default risk premium and a maturity risk premiumc)    A real rate of interest and liquidity premiumd)    A real rate of interest and an inflation premiumANS: D 3)     NPV consider benefits during … life of the projecta)    Entireb)    Startingc)    Endingd)    MiddleANS: A 4)     ……..is not a inventorya)    Machineb)    Raw materialc)    Finished productsd)    Consumable toolsANS: A 5)    …….brings cost of project & it’s cash inflows to equalitya)    NPVb)    IRRc)    PBPd)    profitability indexANS: B 6)    which one of the following is an owned capitala)    debenturesb)    equity sharesc)    loan from financial institutionsd)    bondsANS: B 7)     working capital requirements depends on ..of an organisationa)    current Assetsb)    Bank balancec)    Fixed assetsd)    SizeANS: C 8)     DSO stands for.a)    Debtors sales outstandingb)    days sales outsourcingc)    days sales outstandingd)    debtors supply outsourcingANS: C 9)     profit maximisation is also called asa)    Cashing per share maximizationb)    giving per share maximizationc)    procuring per share maximization d)    banking per share  maximizationANS: B 10) ……. is a situation where a constraint or budget ceiling is placed on the total size of capital expenditure during a particular perioda)    capital rationingb)    capital budgetingc)    cost capitald)    capital investmentANS: A 11)  if sales is RS  2000 variable cost is Rs 1200 fixed cost Rs 400 and interest is Rs 100 what is combine leveragea)    2b)    0.5c)    33d)    67ANS: D 12)  manufacturing organisation requiresa)    Larger working capitalb)    smaller working capitalc)    moderate working capitald)    no working capitalANS: A 13)  which of the following approach consider average rate of return realized in the past few years is historical regarded as expected return. a)    NPV approachb)    realized yield approachc)    price earning approachd)    mm approachANS: B 14)  working capital required is treated as… in capital budgetinga)    cash outflowb)    cash inflowc)    cost of capitald)    cost of goodwillANS: B 15)  Find odd one outa)    Share capitalb)    Investmentc)    Loand)    ReservesANS: B 16)  the purpose of …is to divide all of a company stock into three groupsa)    EOQb)    H.ML classificationc)    perpetual inventory systemd)    abc analysisANS: A 17)  Profit maximisation is also called asa)    cashing per share maximisationb)    giving per share maximisationc)    procuring per share maximisationd)    banking per share maximizationANS: B 18)  what trend is projected by profitability ratioa)    cost share and profitb)    absolute figuresc)    standardsd)    budgetsANS: A 19)  If a project has cost of 6 crores.its plis 5 find its NPVa)    3b)    6c)    9d)    12ANS: A 20)  Liquidity ratio indicate the ability of company to meets ita)    current liabilityb)    text liabilityc)    long term obligationsd)    shareholders claimANS: C 21)  working capital required it is treated as ……in capital budgetinga)    cash outflowb)    cash inflowc)    cost of capitald)    cost of goodwillANS: B 22)  the cost insurance and text are included in ….a)    cost of orderingb)    set up costc)    inventory carring costd)    cost of shortageANS: C 23)  Finance function involve …a)    procurement of finance onlyb)    expenditure of fund onlyc)    safe custodyd)    procurement and effective utilisation of fundsANS: D 24) …… brings cost of project and it’s cash inflow to rqualitya)    NPVb)    IRRc)    PBPd)    profibility indexANS: B 25) ……..from the following is not a capital structure theorya)    net incomeb)    net operating incomec)    Modigliani millerd)    arbitrage   ANS: D If You Need Most Importance MCQ PDF FINANCIAL MANAGEMENT Question Bank Than Pay Rs 100 Only  Contact 8652719712 / 8779537141   JoinTelegram Group  Mumbai Univeersity :-   https://t.me/mumbaiuniversityidol Suraj Patel Education :-   https://t.me/surajpateleducation F.Y.J.C EXAM :-   https://t.me/FYJCexam S.Y.J.C EXAM :- https://t.me/SYJCexam F.Y EXAM :-   https://t.me/fyexam S.Y EXAM :-   https://t.me/syexam T.Y EXAM :-   https://t.me/tyexam M.Com Part 1 EXAM :-   https://t.me/McomPart1Exam M.Com Part 2 EXAM :-  https://t.me/McomPart2Exam M.A EXAM :-   https://t.me/mastudentsexam  YouTube Channel  https://www.youtube.com/channel/UCNxVWIrZ1JYB4y-bWXfaBAw M.COM PART 2 Other Subject MCQ International Marketing https://www.surajpateleducation.com/2021/02/international-marketing-mcq-with.html   ORGANISATIONAL BEHAVIOUR 1)    https://www.surajpateleducation.com/2021/01/mcom-part-2-organisational-behaviour-mcq.html 2)    https://www.surajpateleducation.com/2021/01/organisational-behaviour-mcq-pdf-mcom.html Entrepreneurship 1)    https://www.surajpateleducation.com/2021/01/entrepreneurship-mcom-part-2-multiple.html 2)    https://www.surajpateleducation.com/2021/01/entrepreneurship-development-importance.html Direct Tax 1)    https://www.surajpateleducation.com/2021/01/direct-tax-mcom-part-2-importance-mcq.html 2)    https://www.surajpateleducation.com/2020/12/direct-tax-mcom-part-2-mcq-pdf.html    

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F.Y.B.COM ACCOUNTING AND FINANCIAL MANAGEMENT MCQ

1. Usually, in a single entry system _____________. A. Only manual accounts are maintainedB. Only cash and personal accounts are maintainedC. Only real accounts are maintainedD. Only nominal accounts are maintainedANS: B 2. Profit can be ascertained from the incomplete records under Single entry by using ____________. A. Only Statement of affairs methodB. Only Conversion methodC. Either Statement of affairs or conversion methodD. Neither Statement of affairs nor conversion methodANS: C 3. If books are kept under single entry system, Credit sales are ascertained by preparing __________. A. Total Creditors A/c B. Credit sales A/c C. Trading A/c D. Total Debtos A/cANS: D 4. If books are kept under single entry system, Credit purchases are ascertained by preparing __________. A. Total Creditors A/c B. Credit sales A/c C. Trading A/c D. Total Debtos A/cANS: A 5. If books are kept under single entry system, opening stock is ascertained by preparing ___________. A. Opening stock A/c B. Stock register C. Memorandum Trading A/cD. Opening statement of AffairsANS: C 6. Under stock and Debtors method, Branch stock account helps to ___________.A. Ascertain net profit / loss of the branchB. Ascertain cost of goods sent to the branchC. Ascertain closing stock at the branchD. Ascertain Gross profit/loss of the branchANS: B 7. Branch Adjustment Account is opened __________. A. Under debtors method, when goods are sent by HO to branch at costB. Under stock and debtors method, when goods are sent by HO to branch at costC. Under debtors method, when goods are sent by HO to branch at invoice priceD. Under stock and debtors method, when goods are sent by HO to branch at invoice priceANS: D 8. Branch Account under debtors system is a __________.  A. Real A/c B. Nominal A/c C. Personal A/c D. Representative personal A/cANS: B 9. When Branch ‘A’ sends goods to Branch ‘B’ in the books of Branch ‘A’ debit is given to  A. Sales return A/c B. Branch B A/c C. Head office A/c D. Purchase return A/cANS: C 10. The cash and credit sales of a branch are Rs.5,000 and Rs.10,000 respectively. The amount collected from debtors is Rs.10,000. Under Debtors system the amount credited to branch will be _____A. Rs.20,000 B. Rs.15,000 C. Rs.25,000 D. Rs.10,000ANS: B 11. Cash received from debtors needed for the construction of cash account can be ascertained from ___________. A. Total Creditors A/c B. Total Debtors A/c C. Analysis of cash book D. Balance sheetANS: B 12. Closing balance of trade creditors can be ascertained from ___________. A. Total Creditors A/c B. Total Debtors A/c C. Bills Payable A/c D. Cash A/cANS: A 13. An estimate of assets and liabilities as on a date is called __________. A. Balance sheet B. Statement of affairsC. Statement of Capital D. Trial BalanceANS: B 14. Bills Payable dishonoured are debited to ________ Account.  A. Bills Receivables B. Bills Payable C. Sundry Debtors D. Sundry CreditorsANS: B 15. With the available information a trader need to convert the incomplete records into complete records, it is known as _________. A. Complete records methodB. Statement of affairs methodC. Conversion method D. Random methodANS: C 16. Goods are sent to the Branch at 20% margin on selling price. When Branch stocks disclose a surplus of Rs.2,000 the amount to be credited to Branch Adjustement A/c will be ________.A. Rs.2,000 B. Rs.333 C. Rs.1,600 D. Rs.400ANS: D 17. In Branch Accounts, Depreciation on branch assets under debtors system is ___________.A. Not shown separately in branch A/cB. Shown in Branch A/c C. Not accounted D. Shown in the Profit & loss A/c of head officeANS: A 18. Stock reserve in relation to cloaing stock appears ___________. A. On the credit side of branch A/cB. On the debit side of branch A/cC. On the debit side of Profit & loss A/cD. On the credit side of profit & loss A/cANS: B 19. Which of the following statement is True ? A. The income, expenses, assets and liabilities of an independent branch can be ascertained only by HOB. Purchase of fixed assets by branch on credit will be recorded in the branch A/c kept under the Debtor methodC. Receipts from branch debtors are not recorded in the Branch account kept under the Debtor method.D. Under stock and debtors method, branch stock A/c is opened in order to ascertain net profit/loss of branchANS: C 20. Which of the following statement is False A. Consignor is the owner of the consignment A/cB. Del-credere commission is allowed by consignor to protect himself for bad debtC. Proportionate consignor’s expenses is added up with consignment stockD. All proportioante consignee’s expenses will be added up for valuation of consignment stockANS: D 21. If total stock is Rs.50,000; the value of policy is Rs.70,000 and the entire stock is lost, the claim will be for _________. A. Rs. 70,000 B. Rs. 35,714 C. Rs. 50,000 D. Rs. 60,000ANS: C 22. The Balancing figure in Memorandum Trading A/c prepared by a trader who has lost goods in fire indicates ___________. A. Gross profit on stock lostB. Estimated closing stock as on date of fireC. Value of fire insurance policy D. Amount of claim to be made from Insurance companyANS: B 23. If there are any damaged or obsolete items in stock lost by fire, the Memorandum Trading A/c _____________. A. Should show only the normal itemsB. should have two amount columns on each side for Normal items and Abnormal itemsC. Should show only the abnormal itemsD. should have only one amount columns on either side for Normal items and Abnormal itemsANS: B 24. If there are damaged or absolete items in stock lost by fire, the amount of loss will be ___________. A. Equal to the Cost of normal itemsB. Equal to the Cost of Abnormal itemsC. Equal to the Cost of Normal items ANS:  Cost of abnormal itemsD. Equal to the Cost of Normal items – Cost of abnormal itemsANS: C 25. On loss of goods by fire, a trader can claim compensation for __________. A. The cost of actual physical stock destroyed by fire less salvage, if anyB. The market value of actual physical stock destroyed by fire.C. The cost of book stock on date of fire.D. The cost of actual physical stock destroyed or the cost of book stock on date of fire as per stock records whichever is lower. ANS: A If

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FINANCIAL MANAGEMENT M.com Part 2 MCQ PDF

  M.COM PART 2 FINANCIAL MANAGEMENT MCQ 1. The average collection period for a firm measures the number of days (a) After a typical credit sale is made until the firm receives the payment (b) For a typical check to “clear” through the banking system (c) Beyond the end of the credit period before a typical customer payment is received (d) Before a typical account becomes delinquent ANS: A   2. Which of the following is not the logical consequence of liberalizing credit standards? (a) Sales tend to increase (b) Investment in receivables tend to increase (c) Bad debt losses tend to increase (d) Requirement of finance for working capital tends to decrease (e) Collection costs tend to increase ANS: D   3. Which of the following statements is not true? (a) If credit standards are liberalized, then sales will increase (b) Strict credit standards will tend to reduce the incidence of bad debt loss (c) Increase in credit period will tend to increase the investment in receivables (d) Liberalizing cash discount policy will tend to increase the average collection period (e) A rigorous collection effort tends to increase the collection expense ANS: D   4. Which of the following does not result from liberalizing credit standards? (a) It leads to higher bad debt loss (b) It causes an increase in sales (c) It reduces the cost of collection (d) It increases the investment in receivables (e) Requirement for financing working capital tends to increase ANS: C   5. Which of the following is/are not technique(s) for monitoring collection of receivables? (I) Ageing schedule (ii) Lockbox arrangements (iii) Days sales outstanding (iv) Funds flow analysis (a) Only (I) above (b) Only (iv) above (c) Both (i) and (iii) above (d) Both (ii) and (iv) above ANS: D   6. The average collection period measures the (a) Number of days it takes a typical cheque to “clear” through the banking system (b) Number of days between the day a customer places an order with the firm and the day the firm sends the goods to the customers (c) Number of days beyond the end of the credit period and before a typical customer payment is received (d) Number of days between the day when a typical credit sale is made and the day when the firm receives the payment ANS: D   7. Which of the following statements is true about the terms of trade credit 2/10, net 30? (a) 10% cash discount is offered for payment before 30 days (b) 2% cash discount is awarded for payment on the 30th day after purchase (c) 10% cash discount can be taken if paid by the second day after invoicing (d) No cash discount is offered from the eleventh day onwards after the date of purchase ANS: D   8. Which of the following costs is not a cost of maintaining receivables? (a) Administrative costs (b) Collection costs (c)Ordering costs (d) Defaulting costs (e) Financing costs ANS: C   9. An ageing schedule gives particulars about (a) Profit and present value (b) Accounts receivable and proportion of sales (c) Employees and age of their service (d) Age-wise distribution of accounts receivable ANS: D   10. Which of the following is/are not true? (i) If credit standards are made more stringent, sales are likely to decrease and less amount of money will be locked up in receivables. (ii) If credit period is lengthened, sales are likely to increase but bad debt losses are likely to decrease. (iii) If cash discount is increased, discount paid is likely to increase and amount of receivable is likely to reduce.(a) Only (ii) above (b) Only (iii) above (c) Both (i) and (ii) above (d) Both (ii) and (iii) above (e) Both (i) and (iii) above ANS: A   11. Which of the following statements is true about the terms of trade credit 4/10, net 30? (a) A 10% cash discount is offered for payment before 30 days (b) A 4% cash discount can be taken for payment before the 10th of the following month after invoicing (c) A 10% cash discount can be taken if paid by the fourth day after invoicing (d) No cash discount is offered from the eleventh day onwards after the date of purchase (e) 4% cash discount is awarded for payment on the 30th day after purchase ANS: D   12. Which of the following measures is not adopted to monitor the payment of receivables ? (a) Days sales outstanding (b) Ageing Schedule of Receivables (c) Numerical Credit Scoring (d) Average Collection Period ANS: C   13. Which of the following is a logical consequences of liberalizing credit standards? (a) Collection costs tend to decrease (b) Bad debt losses tend to increase (c) Sales tend to decrease (d) Cost of funds locked in receivables tend to decrease (e) Requirement for financing working capital tends to decrease ANS: B   14. Other things remaining the same, which of the following will generally result as a consequence of making the credit standards more stringent (strict / tight)? (a) More bad debt losses (b) Increase in the number of customers (c) Higher sales turnover (d)Reduction of the outstanding debtors in the balance sheet (e) Incremental cost of collection of the receivables ANS: D   15. Which of the following is a technique for monitoring the status of the receivables ? (a) Ageing Schedule (b) Outstanding creditors (c) Selection Matrix (d) Funds Flow Analysis (e) Credit Evaluation ANS: A   16. Which of the following is not part of collection program ? (a) Dispatch of letters to customers whose due date is approaching (b)Monitoring the state of payables (c) Telegraphic and telephonic advice to customers around the due date (d) Threat of legal actions to overdue accounts (e) Legal action against overdue accounts ANS: B   17. When a company offers credit terms of 2/10, net 30, the annual interest cost, based on a 360-day year, is (a) 24.0% (b) 35.3% (c) 36.0% (d) 36.7% ANS:

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