Matching Type MCQs of Financial Management Chapter with answers

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Important Matching Type Multiple Choice Question of Financial Management chapter with answers

Following is the list

From the set of statements given in column I and Column II, Choose the correct pair of statements:

Column – I	Column – II
a) Financing Decision	i) Deciding investment of funds in long term and short term assets.
b) Net Working Capital	ii) It refers to excess of current assets over current liabilities
C) Investment Decision	iii) Deciding sources of finance, i.e., ratio of debt and equity

Options

Ans:- b) Net Working Capital – ii) It refers to an excess of current assets over current liabilities.

Match the statements given under A with the correct options given under B.

(A)	(B)
i) Interest Coverage Ratio	a) Profit after tax + Depreciation + Interest + Non cash Expenses written off / Preference Dividend + Interest + Repayment Obligation
	b) EBIT/Interest

Ans:- i) – b

Match the items given under ‘A’ with the suitable statements under ‘B’.

(A)	(B)
i) Financial Planning	a) Long-term investment decision.
ii) Capital Budgeting Decision	b) It involves deciding how much of the profits to be distributed to shareholders and how much of it to be retained in the business.
iii) Dividend Decision	c) Its objective is to ensure that enough funds are available at right time.

Ans:- i) – c, ii) – a, iii) – b

Match the items given under ‘A’ with the suitable statements under ‘B’:

(A)	(B)
i) Capital Structure	a) It is concerned with optimal procurement as well as the usage of finance.
ii) Financial Management	b) It refers to the mix between owners and borrowed funds.
iii) Working Capital Decisions	c) The Proportion of debt in the overall capital.
iv) Financial Leverage	d) Short-term investment decisions.

Ans – i) – b, ii) – a, iii) – d, iv) – c