Practice Financial Management Questions and Answers

• What is the Minimum Holding Period (MHP) for loans with a tenor of up to 2 years before they can be transferred by the transferor?
• What action should lenders take when a stressed loan is transferred to an ARC at a price below the Net Book Value (NBV)?
• According to the income recognition policy, when can interest on advances against Term Deposits, NSCs, KVPs, and life insurance policies be taken to the in...
• How should fees and commissions earned by banks through debt renegotiations or rescheduling be recognized?
• An asset would be classified as substandard if it has remained an NPA for a period:
• In accordance with the recently published discussion paper on Introduction of Expected Credit Loss Framework for Provisioning by Banks on which of the belo...
• Regarding the secured portion, what is the provisioning requirement for an advance that has remained in the 'doubtful' category for one to three years?
• To enhance reliability on stock valuation and minimize divergence arising from differences in assessment of security value, which of the following measures...
• What is the general provision required for substandard assets, without considering ECGC guarantee cover and securities available?
• What provision is required for substandard infrastructure loan accounts?
• What is the concessional rate of interest provided under the Differential Rate of Interest (DRI) Scheme?
• As per the recently published discussion paper on Introduction of Expected Credit Loss Framework for Provisioning by Banks, on the basis of credit risk as ...
• Which organization has been designated as the Nodal Agency for issuing guarantee cover under the Credit Enhancement Guarantee Scheme for Scheduled Castes (...
• As per the Gazette Notification on the new criteria for classifying the enterprises as Micro, Small and Medium enterprises, what is the maximum investment ...
• Which of the following is correct about Commercial Papers (CP)?
• Which of the following exposures/counterparties would not be considered to have a SICR as per RBI discussion paper on ECL model for banks: I.  Stressed ex...
• Under written down value method of Depreciation, the WDV of the asset is always:
• Which of the following statements correctly describes the meaning of Indian Depository Receipt (IDR)?
• As per the recently published discussion paper on expected credit loss model for banks, loss allowances on lease receivables and contractual guarantees wou...
• As per realization principle, revenue will be recognized:
• According to the CAPM model, Expected Return = Risk free rate + Risk premium. Here, what does the risk-free rate compensate the investor for?
• Insurance sector in India is regulated by the provisions of: A.Insurance Act, 1938 B.Life Insurance Corporation Act, 1956 C.Insurance Regulatory and Develo...
• As per the proposed ECL model for banks what is the maximum time limit for the distressed valuation of the security cover when treating a financial asset a...
• What will be the net working capital if Current ratio of a concern is greater than 1?
• Credit Information Bureau (India) Limited CIBIL is India’s credit information bureau which provides consumers credit scores to a closed user group of mem...
• Accounting standards in India issued by:
• CAAT stands for _________
• What is the term used to describe the rate of return earned by an investor who purchases a bond and holds it until it matures?
• Under inflationary trend, which of the methods will show highest value of inventory?
• As per RBI's discussion paper on ECL model for banks what is the recommended treatment for the transitional adjustment amount in relation to the adoption o...
• When does the extension of the Date of Commencement of Commercial Operations (DCCO) not be considered as restructuring?
• Infrastructure Debt Funds (IDFs) can be set up as which of the following entities in India?
• Which of the following is a result of a well-functioning financial market?
• Which group of ratios relates the financial charges of a firm to its ability to service them
• What does a decreasing inventory turnover ratio usually indicate about a firm
• When net sales for the year are ₹ 2,50,000 and debtors ₹ 50,000, the average collection period is:
• A construction company receives advance from customer, against the contract of constructing a bridge. But the construction company does not take this to in...
• Who among the following can issue Certificate of Deposits to raise short term resources?
• The term “financial creditor” in the Insolvency and Bankruptcy Code (IBC) in India means?
• Which is the document governing the internal management of the company?