MCQ for CA Intermediate FMECO - SECTION A - FINANCIAL MANAGEMENT - Chapter 2 - TYPES OF FINANCING

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 8 - FINANCIAL MANAGEMENT & ECONOMICS FOR FINANCE - SECTION A - FINANCIAL MANAGEMENT - Chapter 2: TYPES OF FINANCING - For Practice relevant for May/November 23 Examinations

 

Q1. Equity shares:

  1. Have an unlimited life, and voting rights and receive dividends
  2. Have a limited life, with no voting rights but receive dividends
  3. Have a limited life, and voting rights and receive dividends
  4. Have an unlimited life, and voting rights but receive no dividends

Answer: 1

Q2. External sources of finance do not include: 
  1. Debentures
  2. Retained earnings
  3. Overdrafts
  4. Leasing

Answer: 2

Q3. Internal sources of finance do not include:

  1. Better management of working capital
  2. Ordinary shares
  3. Retained earnings
  4. Reserve and Surplus

Answer: 2

Q4. In preference shares:  

  1. Dividends are not available
  2. Limited voting rights are available
  3. Are not part of a company’s share capital
  4. Interest can be received

Answer: 2

Q5. A debenture: 

  1. Is a long-term loan
  2. Does not require security
  3. Is a short-term loan
  4. Receives dividend payments

Answer: 1

Q6. Debt capital refers to:

  1. Money raised through the sale of shares.
  2. Funds raised by borrowing that must be repaid.
  3. Factoring accounts receivable.
  4. Inventory loans

Answer: 2

Q7. The most popular source of short-term funding is:

  1. Factoring.
  2. Trade credit.
  3. Family and friends.
  4. Commercial banks.

Answer: 2

 

CA Intermediate FMECO - SECTION A - MCQ for Chapter 3 -   

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