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Financial Management Unit Test

This document contains a sample unit test for the subject of Financial Management. The test contains 3 questions assessing different concepts. Question 1 has two parts - part A contains fill in the blank questions and part B contains true/false questions. Question 2 requires one sentence answers to questions about financial concepts. Question 3 provides two long form questions requiring calculations related to working capital management and cash budgeting. The test is out of a total of 20 marks and covers key topics in financial management.

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arundhang
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81 views3 pages

Financial Management Unit Test

This document contains a sample unit test for the subject of Financial Management. The test contains 3 questions assessing different concepts. Question 1 has two parts - part A contains fill in the blank questions and part B contains true/false questions. Question 2 requires one sentence answers to questions about financial concepts. Question 3 provides two long form questions requiring calculations related to working capital management and cash budgeting. The test is out of a total of 20 marks and covers key topics in financial management.

Uploaded by

arundhang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Unit Test

Class:-T.Y. BMS

Exam seat No:-

Time:-45 m.

Subject:- Financial Management


Maximum Marks:- 20

N. B.: 1. All questions are compulsory.


Ques:-1][A] Fill in the Blanks
[ 2 marks]
1)____________is the life blood of the modern business organization.[Finance
,Working Capital, Capital]
2) Finance manager is concerned with the procurement of funds and their effective
_________________in the business. [Management, Utilization, Sources]
3) Finance function may be divided into ___________and incidential functions.
[management ,Financial, Executive]
4) The most important ratio in case of grading of term loan is ________.[EPS ,P/E
,Current ratio, DSCR]
5) Debentures is a ____________securities .[Ownership, Creditorship, Government]
Ques:- 1] [B] True OR False .
marks]

[2

1) Working capital is also meant as circulating capital.


2) Working capital has to be financed from short term sources of funds.
3) Credit sales result in receivables balances.
4) Receivables is due to cash sales for which payment has not yet been received.
5) Cost of capital can be calculated using books values or market values as weights.
Ques:-2] Answer in one sentences
[ 5 marks ]
1) Trading on Equity.
2) ABC Analysis.
3) Cash Management.
4) What is cost of capital?
5) Float.

Ques:- 3] Answer the following question ( Any Two )


[ 10 marks ]
1)M/S Jayam ltd. Sells its products on a gross profit of 20% on sales. The following
information is extracted from its annual account for the year ended 31 St march
2015.
Sales [at three months credit ]

4000000

Raw material [one month in arrears]

1200000

Wages paid [average time lag 15 days ]

960000

Manufacturing Exp [ one month arrears ]

1200000

Administration Exp paid [ one month in arrears ]

480000

Sales Promotion Exp[payable half-yearly in advance]

200000

Cash

100000

STOCKS OF :(A) Raw materials [ 2 month Inventory ]


(B) Finished goods [ 1.5 month Inventory] And ADD 10% Safety margin.
2) Prepare Cash Budgets from the following information.
Month
Expenses

Sales
Other Exp

Purchases

Dec05
9000

58000
7000

38000

Jan06

97000
6000

27000

wages
11000
14000

Feb06
7000

82000
3000

26000

11000

Mae06
5000

98000
4000

24000

21000

8000

Other Information:1)Cash in hand on 1|12|05 was Rs.11034 and any short fall is to be met with
through temporary loans.
2)30% sales are for cash and debtors get realized in two months period Equally.
3)one month credit is available from creditors for purchases.
4)All others expenses are incurred on 1st of next month.

5)Expenses includes depreciation of Rs.1000 per month.


3) If interest on borrowed capital is 12%and rate of taxation is 40%. Determine the
after tax cost of borrowing.
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