Question $1$

$[10$ Marks$]$

Multiple choice questions. Each question carries $1$ mark. Encircle the correct answer.

$1\mathrm{.}1.$ The only feasible purpose of financial management is

A$.$ Wealth Maximization

B$.$ Sales Maximization

C$.$ Profit Maximization

D$.$ Assets maximization

$1\mathrm{.}2.$ Finance Function comprises

A$.$ Safe custody of funds only

B$.$ Expenditure of funds only

C$.$ Procurement of finance only

D$.$ Procurement & effective use of funds

$1\mathrm{.}3.$ The term current asset doesn't cover

A$.$ Car

B$.$ Debtors

C$.$ Stock

D$.$ Prepaid expenses

$1\mathrm{.}4.$ Investment can be defined as:

A$.$ Person's dedication to purchasing a house or flat

B$.$ Use of capital on assets to receive returns

C$.$ Usage of money on a production process of products and services

D$.$ Net additions made to the nation's capital stocks

$1\mathrm{.}5.$ From the below$-$mentioned items which are financial assets?

A$.$ Machines

B$.$ Bonds

C$.$ Stocks

D$.$ B and C

$1\mathrm{.}6.$ The return which the company pays on borrowed funds is termed as

A$.$ Dividend

B$.$ Interest

C$.$ Bonus

D$.$ All of the above

$1\mathrm{.}7.$ The following is$($are$)$ the external source$($s$)$ of cash except

A$.$ Long terms loans

B$.$ Short term borrowings

C$.$ Issue of new shares

D$.$ Retained earning

$1\mathrm{.}8.$ Current assets are also referred to as

A$.$ Working capital

B$.$ Investments

C$.$ Inventory

D$.$ Livestock

$1\mathrm{.}9.$ Which of the following is not one of the main purposes of a budget?

A$.$ the alignment of individual and corporate goals

B$.$ to enable a flexibility of approach to company policies

C$.$ planning and control

D$.$ to optimise the use of scarce resources

$1\mathrm{.}10.$ Non$-$current assets are held by business for

A$.$ Converting into cash

B$.$ Generating revenue

C$.$ Resale

D$.$ None of the above.