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CMA Intermediate Exam: Financial Management
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Financial Management syllabus: (Weightage: 50%)
1. Introduction to Financial Management
2. Tools for Financial Analysis and Planning
3. Working Capital Management
4. Cost of Capital, Capital Structure Theories, Dividend Decisions and Leverage Analysis
5. Capital Budgeting - Investment Decisions 

Related Test: CMA Intermediate Exam: Cost and Management Accounting

CMA Intermediate Exam: Financial Management
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25 Questions

1. The internal rate of return (IRR) assumes that cash flows are reinvested at the firm
2. Companies P and Q are competitors for product PQ. P has a higher degree of operating leverage than Q. if demand for PQ decreases, profits of Q will decrease at a slower rate than P.
3. Which of the following is a Profitability Ratio?
4. Debt Financing is a cheaper source of finance because of
5. Current Assets Rs. 20,00,000; Current Liabilities Rs. 10,00,000 and Stock Rs. 2,00,000, then what is liquid ratio?
6. In Cash Flow Statement, Cash includes________________.
7. Which of the following is a feature of Factoring?
8. Payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as
9. Which of the following is not incorporated in Capital Building?
10. Treasury Bills are short term instruments issued by the Reserve Bank of India to address short term liquidity shortfalls.
11. Bill Financing is least liquid from Banker
12. ARR is the Accounting Rate of Return or Average Rate of Return.
13. The 'Dividend-Payout Ratio' is equal to
14. Under cash credit / overdraft arrangement, a predetermined limit for borrowing is specified by the bank.
15. Cash equivalents include purely short term and highly liquid investments which are readily convertible into cash and which are subject to an insignificant risk of changes in value.
16. Payout Ratio = Earning per Equity share / Dividend per equity share.
17. The persons interested in the analysis of financial statements can be grouped as _________.
18. Determinants of credit policy relates to:
19. Which one of the following activities is outside the purview of financing decision in financial management?
20. Which of the following forms of equity financing is especially designed for funding High Risk & High Reward projects?
21. The discount rate which forces net present values to become zero is classified as
22. Baumol's Model of Cash Management attempts to:
23. Value of right = Cum right share price minus Ex right share price.
24. At Internal Rate of Return the Profitability Index will be zero.
25. Which of the following is not considered while preparing cash budget?