FINANCIAL MANAGEMENT (CAIIB)

Recollected

CTDI

RECOLLECTED QUESTIONS BASED ON

FINANCIAL MANAGEMENT
1) The Yield to Maturity of a bond is the same as:
a) The present value of the bond
b) The bonds internal rate of return
c) The future value of the bond
d) None of these
2) Choose from the following a symptom which is not
relating to Over Trading.
a) Cash shortage
b) Low inventory turnover ratio
c) Low current ratio
d) High inventory turnover ratio
3) The formula to calculate the present value of a single
cash flow is given by:
a) CF1 / (1+r)n
b) C2 / (1+r)
c) C0 + C (1+r)n
d) None of these
4) The effect of purchasing power or inflation on present
value is important because _____:
a) It increases the real value of cash flows received in the
future
b) It reduces the real value of cash flows received in the
future
c) It has no effect on real value of cash flow received in the
future
d) None of these
5) An Asset is _______:
a) Sources of funds
b) Use of funds
c) Inflow of funds
d) None of these
6) If a company revaluates its fixed assets, the current
ratio of the company will:
a) Improve if assets are revalued upward
b) Remain unaffected
c) Improve if assets are revalued downwards
d) Undergo change only if liabilities are remaining constant
7) If we were studying a sample of 100 students and their
examination performance and if the standard deviation of
the list of results was say 14, then we could calculated
the standard error by ____:
a) Dividing the square root of the number of items in the
sample by the mean
b) Dividing standard deviation by number of items in the
sample
c) Dividing the standard deviation by the square root of the
number of items in the sample
d) We cannot calculate standard error on account of
inadequacy of information
8) Rule of 72 as a short cut method is explained by the
formula:
a) 72 divided by the annual interest rate
b) Annual interest rate dividend by 72
c) 72 divided by (annual interest rate multiplied by discount
factor)
d) None of these
9) Tangible net worth is calculated as:
a) Capital + Reserves

CTDI ,

b) Capital + Reserves Intangible Assets

c) Capital + Fictitious Assets + Reserves Intangible assets
d) Capital + Reserves Fictitious Assets and intangible
assets
10) A researcher chooses a Sample by using a Sampling
frame and taking the item that corresponds to the nth
number in the list. This procedure is called:
a) Simple Random Sampling
b) Systematic Sampling
c) Stratified Sampling
d) Quota Sampling
11) A uniform discount rate cannot be applied for
comparing different type of investments e.q. building
property v/s PPF because of:
a) Return difference
b) Risk
c) Liquidity
d) None of these
12) Cash can be conserved by resorting to:
a) Maximum quantity of stock
b) Minimum level of creditors
c) Best credit terms with suppliers
d) None of these
13) Choose a sentence which speaks inappropriately
about earning per share (EPS).
a) It indicates the net profit earned per share
b) It influences dividend policy of the firm
c) It does not influence the market price of the share
d) It does not influence the share holding pattern of the
company.
14) Sources of financing project cost excludes:
a) Leasing
b) Subsidy
c) Deferred Credit
d) Trade Credit
15) Under Cash Budget System method employed for
construction activities the working capital is determined
by:
a) Ascertaining level of current assets
b) Ascertaining level of current liabilities
c) Finding cash gap after taking into account projected
periodical cash inflows and outflows
d) All of the above
16) Which of the following statements is true?
a) A Cash Credit is a running account
b) Cash Credits may become long term in nature due to
repeated rollovers
c) Overdrafts are allowed only against the security of
inventories
d) Both a and b above
17) A project is more acceptable for finance:
a) Break even point is high
b) IRR is higher than the cost of capital
c) Both a and b above
d) None of these
18) Term Loans are provided for:
a) Meeting capital cost of the project
b) Funding promoters contribution
c) Meeting working capital needs of the enterprise
d) None of these

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FINANCIAL MANAGEMENT (CAIIB)

Recollected

CTDI

19) A company is offered discount of 2% on its suppliers

if payment is made within 10 days, as against no
discount for a credit period of 45 days. If cost of capital
is 18%, Company should ____:
a) Avail of the discount
b) Pay the creditors on 45th day
c) Pay the creditors between 11th and 45th day
d) None of these
20) Raw material consumed is equal to:
a) Opening Stock + Purchases
b) Opening Stock+PurchasesClosing Stock of raw material
c) Purchasing Closing stocks
d) None of these
21) How do profits made from normal operations retained
in business appear in the balance sheet?
a) Under Capital
b) Under capital, reserves & surplus
c) Under cash in hand, at bank
d) None of these
22) Debentures are classified as:
a) Long Term Debt
b) Short Term Loan
c) Owned funds
d) Owned funds if raised from
shareholders
23) Working Capital Gap means:
a) Excess of Current Assets over Current Liabilities
b) Excess of Current Assets over Current Liabilities other
than bank borrowings
c) Excess of Current Assets over Current Liabilities including
working Capital term loan
d) None of these
24) Choose the order which indicates the working capital
cycle of a manufacturing firm:
a) Cash raw material work in progress finished
goods sales debtors cash
b) Cash Debtors raw material work in progress
sales finished goods cash
c) Raw material work in progress finished goods
cash sales debtors cash
d) Cash finished goods raw material work in
progress sales debtors cash
25) C-V-P analysis contribution means:
a) Excess of selling price over variable costs
b) Fixed cost plus profit (or minus loss)
c) Both a and b above
d) None of these
26) If you were to choose to receive Rs. 15,000/- today or
Rs. 18,000/- four years from now or Rs. 19,000/- seven
years from new, which option would you choose based
on the time value concept? Assume the current interest
rate is 4%:
a) Rs. 15,000/- today
b) Rs. 18,000/- four years from now
c) Rs. 19,000/- seven years from now
d) I would be indifferent
27) What is the present value of Rs. 10,000/- to be
received three years from now at a interest rate of 4.5%?
a) Rs. 10920.25
b) Rs. 9157.30
c) Rs. 8762.97
d) Rs. 11411.65/-

CTDI ,

28) Minimum Stock level is calculated as:

a) Re-order level (Average usage x Average Lead Time)
b) Re-order level + (Average usage + Average Lead Time)
c) Re-order level (Average usage + Average Lead Time)
d) None of these
29) Find the interest rate, if the present value is Rs. 100/and future value becomes Rs. 115.76 in three years:
a) 4%
b) 5%
c) 6%
d) 7%
30) Choose the statement which speaks appropriately
about the feature of net present value (NPV).
a) It has no application in mutually exclusive projects.
b) It assumes that cash flows resulting during the life cycle of
project have an opportunity cost equal to the discount rate
used
c) It assumes that cash flows resulting during the life cycle of
project have an opportunity cost equal to the IRR which
generated them
d) It provides a percentage figure
31) Which of the following will cause a decrease in the
net operating cycle of a firm?
a) Increase in work-in-process period
b) Increase in the raw material storage period
c) Increase in the average payment period
d) Increase in the average collection period
32) The impact of the inflation on working capital is
direct. As a result, the amount of sales, the value of
sundry debtors and closing stock etc:
a) Increase
b) Decreases
c) No Effect
d) Difficult to say
33) Separate limits of working capital for Peak and
normal non-peak level periods was recommended by
______
a) Tandon Committee
b) Naik Committee
c) Chore Committee
d) None of these
34) What is the future value of Rs. 10,000 to be received
at a savings interest rate of 4.5% after 3 years?
a) Rs. 11411.66
b) Rs. 11920.25
c) Rs. 8762.97
d) Rs. 4157.30
35) Which one of the following sentence speaks aptly
about liquidity ratio?
a) It indicates the relationship between debt and equity
b) It measures the efficiency of asset management
c) It measures earning capacity of an enterprise
d) It measures the short term slabs of an enterprise
36) Calculate the present value of 6 years bond with 9%
coupon rate and maturity value of Rs. 1000/-. If the
current interest rate is 12%.
a) Rs. 843.83
b) Rs. 1025.57
c) Rs. 876.66
d) Rs. None of these
37) Money has time value because:
a) The individual prefer future consumption to present
consumption
b) A rupee today is worth more than a rupee tomorrow in
terms of purchasing power
c) A rupee today can be productive, deployed to generate
real returns tomorrow

SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH, PH. 0172-2708961-62

FINANCIAL MANAGEMENT (CAIIB)

Recollected

CTDI

d) Both b and c above

38) Which one of the following sentence relating to
dividend per share (DPS) is not correct.
a) DPS represent what the equity share holders are
theoretically entitled to receive as dividend from a company
b) DPS represents dividend per equity share paid to the
share holders
c) DPS is paid on the paid up value of shares
d) DPS is in respect of equity shares
39) Vipin owns an infrastructure bond which pays a semi
annual coupon of Rs. 45/-. The bond will mature in seven
years and will repay the principal of Rs. 1000/- at
maturity, if the yield curve shows that 7 year
Infrastructure Bonds have 6 monthly yield of 4% at the
current time how much is Vipins bond worth?
a) Rs. 1052.82
b) Rs. 1042.82
c) Rs. 1045.00
d) Rs. 1000.00
40) Narinder wishes to have Rs. 10,000 in his bank
account to buy a car for his 35th birth day which is two
years away. He can invest his money in a two year Fixed
Deposit which pays an annually compounded rate of 6%.
How much must he put into the fixed deposit now to
achieve his goal?
a) Rs. 8900.96
b) Rs. 9000.90
c) Rs. 8899.96
d) Rs. 8890.90
41) Balance sheet of a company indicated that its
Current Ratio is 1.5. Companys net working capital is
Rs. 1 crore. The current assets would amount to____:
a) Rs. 3 crores
b) Rs. 1.5 crores
c) Rs. 2.5 crores
d) None of these
42) Mohan is 23 and has started his first job in CTDI he
plans to put aside Rs. 5000/- per year so that he can
make nice down payment for a car in six years, if he
deposits this amount at the end of each year and earns
8% on his money, how much will he have accumulated at
the end of 6 years?
a) Rs. 36000/b) Rs. 36666/c) Rs. 36679/d) None of these
43) Current Assets are either cash or cash equivalents or
those which can be converted into the cash between
____:
a) 2 years to 3 years
b) 1 day to 365 days
c) 1 year to 3 years
d) 3 years to 5 years
44) Choose a correct sentence which describes
accurately
about High Assets Turnover Ratio.
a) It indicates of under utilization of assets
b) It indicates an efficient and effective utilization of assets
c) It indicates presence of Idle capacity
d) None of these
45) Which of the following statements is false?
a) Investments in shares and advances to other firms, not
connected with the business is included in current assets
b) Investments in shares and advances to other firms, not
connected with the business is excluded from current assets
c) Advances to other firms connected with the business
included in the loans and advances

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d) Investments in shares of other firms is included in

investments and shown in Balance Sheet at assets side
46) Interest on loan capital is:
a) A deductible expenditure for the purpose of ascertaining
taxable income
b) A non-deductible expenditure for the purpose of
ascertaining taxable income
c) A capital expenditure and as such no tax shield is available
d) None of these
47) Choose from following Ratios, a ratio which gives an
insight into how efficiently the long term funds raised
from owners and lenders are employed.
a) Return on Equity (ROE)
b) Return on Assets (ROA)
c) Return on Capital Employed (ROCE)
d) None of these
48) Which of the following statements is true?
a) Taking term loan from bank is treated as revenue receipt
and credited to profit and loss account
b) Instalment of term loan payable is treated as revenue
expenditure and is changed to profit and loss account
c) Installment of term loans payable within 12 months from
the date of the balance sheet is classified under current
liabilities
d) Installment of term loans payable within 12 months from
the date of the balance sheet is classified under secured
loans.
49) The Ratio which throw light on the operating
efficiency or effective use of the facilities and resources,
are calculated on the basis of:
a) Financial data take from profit and loss account
b) Financial data take from profit and loss a/c and balance
sheet
c) Financial data taken from balance sheet
d) None of these
50) Which one of the following statements does not
speak appropriate about net working capital?
a) Excess of current assets over current liability is called net
working capital (NWC)
b) The greater the amount of net working capital (NWC), the
more would be the liquidity of the enterprise
c) The greater the amount of bank borrowing for financing
current assets, the more would be the liquidity of the
enterprise
d) Net working capital is financed through equity as well as
debt sources.
51) The relationship between the owned funds and the
borrowed funds of the enterprises is depicted by:
a) Current Ratio
b) Proprietary Ratio
c) Debt Equity Ratio
d) None of these
52) A company is having sales of Rs. 1,00,000/-, Fixed
Cost of Rs. 20,000/-, Break Even Point at Rs. 80,000/- The
profit would be:
a) Rs. 5000/b) Rs. Nil
c) Rs. (-) 10,000
d) Rs. 10,000/-

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FINANCIAL MANAGEMENT (CAIIB)

Recollected

CTDI

53) When the business is dependent heavily upon

borrowed money and trade creditors the situation is
called_____:
a) Over capitalization
b) Under capitalization
c) High gearing
d) None of these
54) Which of the following action results in a decrease in
the total working capital of the firm?
(I) Changing the method of packing the product. The new
method results in a more attractive packet. The time required
for packing one unit of finished goods and the inventory level
of packing material remains the same.
(ii) Changing the method of depreciation
(iii) Decrease in wage rates
a) Both i and ii
b) Both ii and iii
c) Both I and iii
d) None of these
55) Choose the correct formula for the calculation of debt
service coverage ratio from the following:
a) [PAT + Interest on Term Loans Lease Rental] -:[Repayment of instalments of Term Loan + Interest on Term
Loans + Lease Rentals].
b) [Pat + Depreciation + Interest on Term Loans + Lease
Rentals] -:- [Interest on Term Loans + Lease Rentals].
c) [PAT + Depreciation + interest on Term Loans + Lease
Rentals] -:- [Repayment of instalments of Term Loan +
Interest on Term Loans + Lease Rentals]
d) None of these
56) If the price earning ratio is 25 and the market price is
Rs. 40/- and the number of share are 100000. What is the
amount of total earnings after tax?
a) Rs. 1,00,000
b) Rs. 40,00,000/c) Rs. 1,60,000/d) None of these
57) An inventory turnover Ratio is respect of finished
goods of less than 1 will indicate.
a) That the finished goods could be sold during the year
b) That the sale of finished goods could take more than a
year
c) That the finished goods could not be sold any time.
d) None of these
58) If net worth is Rs. 7 lac and intangibles assets are Rs.
2 lac then the tangible net worth will be _______:
a) Rs. 4 lac
b) Rs. 5 lac
c) Rs. 9 lac
d) None
Answer Questions No. 5960 based on the following
information. Data is available in respect of HMT Ltd.
31-3-2005
31-3-2004
PAT
800
720
Interest
1200
800
Dividend
550
550
Tax
250
220
59) What does the above data signify to the lenders in
2005?
a) Happy signal to the lenders
b) No happy signal to the lenders
c) Wait and watch signal to the lenders
d) None of these

60) Find out the interest coverage ratio for 2004-05 and
2003-04?
a) 0.66 and 0.90
b) 0.87 and 2.17
c) 0.88 and 1.90
d) None of these
Q. 61-62 are based on the following balance sheet of
ABC Ltd. as on 31-3-2005 is as follows:
(Rs. in 000s)
Liabilities
Assets
Share capital
50 Fixed Assets
70
Long term loans
40 Inventories
20
Rs. 5,000 payable in
Work in progress
10
July 2004
Sundry Creditors
10 Sundry Debtors
20
Tax payable
10 Cash
15
Bills Payable
5
Expenses Payable
12
Provision for dividend
8
Total
135
135
61) What is working capital?
a) Rs. 15,000
b) Rs. 20,000
c) Rs. 25,000
d) Rs. 30,000
62) What is the current ratio of ABC Ltd.
a) 1.4
b) 1.30
c) 1.48
d) 1.36
Q. 63-64: The Balance Sheet of XYZ Ltd., as on 31-3-2006
is as follows:
(Rs. in lacs)
Liabilities
Assets
Equity Shares of Rs.
200 Fixed Assets
500
10 each
Retained Earnings
200 Current Assets
11% Debentures
300 Inventory
Public Deposits
100 Raw Material
100
Trade Creditors
80 W.I.P.
150
Bills Payable
100 Finished Goods
75
Debtors
100
Cash / Bank
55
Total
980
980
63) As per 2nd Method of lending as per Tandon
Committee the XYZ Ltd. a firm can avail working capital
facility of:
a) Rs. 180 lacs
b) Rs. 200 lacs
c) Rs. 285 lacs
d) Rs. 80 lacs
64) As per 1st Method of lending as per Tandon
Committee the XYZ Ltd., a firm can avail working capital
facility of:
a) Rs. 150 lacs
b) Rs. 285 lacs
c) Rs. 75 lacs
d) Rs. 225 lacs
Questions Nos. 65 and 66 based on the following data:
Unit A (Rs.)
Fixed Cost

CTDI ,

SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH, PH. 0172-2708961-62

1,50,000

Unit B (Rs.)
2,00,000

FINANCIAL MANAGEMENT (CAIIB)

Recollected

CTDI

Variable Cost (Per Unit)

80
60
Sale Price (Per Unit)
100
100
Units per month
12,500
10,000
Capital Utilization
100%
100%
65) Break Even Point in terms of capacity utilization in
case of Unit B in the above question is:
a) 60%
b) 50%
c) 40%
d) 25%
66) Break Even Point in terms of capacity utilization in
case of unit A in above question is:
a) 60%
b) 50%
c) 25%
d) 40%
67) Working capital is the finance required for meeting
current needs of any business concern or industry and
represents the funds invested in
a) Raw material, work in progress & finished goods
b) Stores & spares
c) Debtors & receivables
d) All of these
68) Based on the operating cycle of the unit, the working
capital requirement is computed by ascertaining the
amount of money required for smooth conduct of the
business on the following factors ..
a) months stock of RM, WIP, FG, Consumable stores &
spares
b) months debtors representing credit sales
c) One months expenses
d) All of these
69) Based on the operating cycle of the unit, the working
capital requirement is computed by ascertaining the
amount of money required for smooth conduct of the
business on the following factors ..
a) Months stock of RM, WIP, FG, Consumable stores &
spares
b) Months debtors representing credit sales
c) One months expenses
d) All of these
70) Following is one of the methods in Discounted Cash
Flow Technique
a) Payback Period
b) Average rate of return
c) Discount to sales ratio
d) Net present value
71) Acid Test Ratio establishes relationship between
a) Cash in hand and at bank to term liabilities
b) Book debts to current liabilities
c) Quick assets to current liabilities
d) None of these
72) Banks generally prefer debt equity ratio
a) 1 : 1
b) 2 : 1
c) 3 : 1
d) 4 : 1
73) As per the recommendations of Chore Committee
banks have been asked to ensure
a) Borrowers deposit 50% of their net profit in time deposits
b) Relax norms prescribed by Tandon Committee
c) Adopt 2nd Method of lending
d) Borrowers do not contribute more than 25% as margin

CTDI ,

74) The quantum of working capital to be given to an

industrial unit would depend upon
a. Sales volume
b. Purchases to be made
c. Operating cycle
d. Current assets needed to execute the projected sales
and production levels
75) Normally the maximum amount that can be granted
as working capital to an industrial unit should not
exceed
a) Total current assets
b) Total of current assets less liquid surplus
c) Total of current assets less liquid surplus and creditors
d) Total of current assets less all current liabilities
76) Mean value of weekly income of 40 families is 265.
But while calculation income of one family was read as
150 instead of 115. The correct mean is:
a) Rs.264
b) Rs.264.11
c) Rs.264.15
d) Rs.264.12
77) A time series consists of data arranged ______.
a) Tidely
b) Chronologically
c) Haphazard
d) None of these
78) While drawing a scatter diagram if all points appear
to form a straight line going downward from left to right,
then it is said, there is:
a) (+) ve correlation
b) () ve correlation
c) Perfect () ve correlation
d) No correlation
79) Limit against Current Assets 584, CreditorsGoods
70, Creditors-others 78, Unpaid expenses 34,
Provisions ( Tax-26, Bonus-9, Dividend-12), Loan against
Capital Goods,- 133, Inventory 383, Investments 221,
Cash 22, Marketable Securities 67, Receivables 243,
Debtors 147, Disputed Receivables 15, Stagnant
Finished Goods 21. What is the Current Ratio..
a) 1.02
b) 1.06
c) 1.11
d) 1.22
80) Limit against Current Assets 584, CreditorsGoods
70, Creditors-others 78, Unpaid expenses 34,
Provisions ( Tax-26, Bonus-9, Dividend-12), Loan against
Capital Goods,- 133, Inventory 383, Investments 221,
Cash 22, Marketable Securities 67, Receivables 243,
Debtors 147, Disputed Receivables 15, Stagnant
Finished Goods 21. What is the Quick Ratio..
a) 0.53
b) 0.55
c) 0.57
d) 0.59
81) Limit against Current Assets 584, CreditorsGoods
70, Creditors-others 78, Unpaid expenses 34,
Provisions ( Tax-26, Bonus-9, Dividend-12), Loan against
Capital Goods,- 133, Inventory 383, Investments 221,
Cash 22, Marketable Securities 67, Receivables 243,
Debtors 147, Disputed Receivables 15, Stagnant
Finished Goods 21. What is the Working Capital
Gap..
a) 13
b) 49
c) 597
d) 633
82) Capital 232, Reserves (Revaluation 140,
Investment 33, Depreciation 160, General 60),
Advances outstanding ( Against Fixed Assets 325,
Against Current Assets 491, Unsecured Term Loans

SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH, PH. 0172-2708961-62

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CTDI

154), Patents 23, Accumulated Losses 189. What is

Debt-Equity Ratio.
a) 0.77
b) 1.16
c) 1.55
d) 2.35
83) Sales 6857, Gross Profit 1097, Net Profit 165,
Depreciation 30, Cost of Production 4457, Cost of
Sales 4704, Raw Material Consumed 3743. What is
Cost of Goods Sold Ratio
a) 55%
b) 65%
c) 69%
d) 84%
84) Sales 6857, Gross Profit 1097, Net Profit 165,
Depreciation 30, Cost of Production 4457, Cost of
Sales 4704, Opening Stock 310, Closing Stock - 367.
What is Stocks Turnover Ratio
a) 16.34
b) 17.02
c) 19.45
d) 20.26
85) Sales 6857, Gross Profit 1097, Net Profit 165,
Depreciation 30, Cost of Production 4457, Cost of
Sales 4704, Opening Finished Goods 126, Closing
Finished Goods - 151. What is Finished Goods Holding
Period
a) 10.75 days
b) 11.34 days
c) 11.83 days
d) 12.49 days
86) Sales 6857, Gross Profit 1097, Net Profit 165,
Depreciation 30, Cost of Production 4457, Cost of
Sales 4704, Opening Debtors (Total-243, Bad-15),
Closing Debtors (Total-327, Bad-14). What is Debt
Collection Period
a) 14.40 days
b) 15.17 days
c) 20.99 days
d) 22.11 days
87) Sales 6857, Gross Profit 1097, Net Profit 165,
Depreciation 30, Cost of Production 4457, Cost of
Sales 4704, Raw Material Consumed 3743. Opening
Stock 184, Closing Stock 159, Opening Creditors
129, Closing Creditors 70. What is the Creditors
Turnover Ratio..
a) 37.62
b) 37.37
c) 44.79
d) 47.28
88) An SSI unit has been sanctioned Cash Credit (Hypo.)
limit of Rs.20 Lac with 20% margin. What should be the
value of security so that the borrower can utilize the limit
fully .:
a) Rs.15 Lac
b) Rs.20 Lac
c) Rs.25 Lac
d) Rs.30 Lac
89) An SSI unit has been sanctioned Cash Credit (Hypo.)
limit of Rs. 20 Lac with 25% margin against paid stocks.
Borrower has submitted the stock statement which
indicates the stocks as Rs. 24 Lac with sundry creditors
to the extent of Rs. 8 Lac. What is the drawing
power
a) Rs.9 Lac
b) Rs.12 Lac
c) Rs.18 Lac
d) Rs.20 Lac
90) Fixed Assets 70000, Non Current Assets 20000,
Total Liabilities 200000, Current Liabilities 88000,
Inventory 21000. On the basis of above figures
a) Net worth is 60000
b) Term Loan is 70000
c) Owned funds are 90000 d) Current Assets are 110000
91) Paid-up Capital 80, Reserves & Surplus 30,
Sundry Creditors 90, Term Loan from Banks 40, Profit
& Loss (Debit balance) 10. What is the Tangible Net
Worth

CTDI ,

a) Rs.100 Lac
b) Rs.110 Lac
c) Rs.120 Lac
d) Rs.140 Lac
92) A low Current Ratio may imply
a) Shortage of Working Capital
b) Surplus of Working Capital
c) Sufficient Working Capital
d) Threshold Working Capital
93) As per Nayak Committee, the margin contribution of
the SSI unit is _____ % of the annual projected
turnover.
a) 5%
b) 10%
c) 20%
d) 25%
94) Sale Price is Rs.10 per unit, Variable Cost is Rs.6 per
unit, Fixed Cost is Rs.60000/-. What is the contribution
per unit.
a) Rs.1.67
b) Rs.4.00
c) Rs.6.00
d) Rs.16.00
95) Sale Price is Rs.10 per unit, Variable Cost is Rs.6 per
unit, Fixed Cost is Rs.60000/-. What is the Break Even
Point in terms of units..
a) 3750
b) 10000
c) 15000
d) 35928
96) Sale Price is Rs.12 per unit, Variable Cost is Rs.8 per
unit, Fixed Cost is Rs.120000/-.What is the level of sales
at BEP..
a) Rs.180000/b) Rs.240000/c) Rs.360000/d) Rs.960000/97) Sale Price is Rs.10 per unit, Variable Cost is Rs.6 per
unit, Fixed Cost is Rs. 60000/-. What level of sales be to
achieve profits of Rs.20000/-
a) Rs.80000/b) Rs.133330/c) Rs.200000/d) Rs.479000/98) The Current Ratio of a company is constant for the
last two years but the Quick Ratio increased from 1.00 to
1.60. Which of the following conclusions is certainly true
about this company.
a) Recovery of dues is difficult
b) Stocks in absolute terms have declined
c) Stocks as a %age of Current Assets have declined
d) Sales have declined
99) An SSI unit has been sanctioned Working Capital
limit of Rs.60 Lac. What is the annual projected turnover
of the unit..
a) Rs.2.40 Cr.
b) Rs.3.00 Cr.
c) Rs.4.00 Cr.
d) Rs.5.00 Cr.
100) Debt Service Coverage Ratio (DSCR) indicates.
a) Excess of Current Assets over Current Liabilities
b) Number of times fixed assets cover borrowed funds
c) Number of times surplus covers interest & instalments of
Term Loans
d) Effective utilization of assets

SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH, PH. 0172-2708961-62

FINANCIAL MANAGEMENT (CAIIB)

Recollected

CTDI

Yesterday is history, tomorrow is

mystery, and today is a gift. Thats
why.. it is called the present.
God never closes a door without
opening a window. He always gives
us something better when he takes
something away.
Vipin Sharma

CTDI ,

SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH, PH. 0172-2708961-62

FINANCIAL MANAGEMENT (CAIIB)

Recollected

CTDI

ANSWER FINANCIAL MANAGEMENT

(RECOLLECTED )
1
6
11
16
21
26
31
36
41
46
51
56
61
66
71
76
81
86
91
96

B
B
A
D
B
B
C
C
A
B
C
C
B
A
C
D
C
A
A
C

2
7
12
17
22
27
32
37
42
47
52
57
62
67
72
77
82
87
92
97

B
D
C
B
A
C
A
D
C
C
A
B
B
D
B
B
B
B
A
C

3
8
13
18
23
28
33
38
43
48
53
58
63
68
73
78
83
88
93
98

A
A
C
A
B
A
C
A
B
C
B
B
A
D
C
B
D
C
A
C

4
9
14
19
24
29
34
39
44
49
54
59
64
69
74
79
84
89
94
99

B
D
D
A
A
B
A
A
B
A
C
B
D
D
D
A
B
B
B
B

5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100

B
B
C
B
C
C
D
C
A
C
C
D
B
D
C
C
B
D
C
C

CTDI WISHES YOU ALL THE BEST.

CTDI ,

SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH, PH. 0172-2708961-62