Practice Financial Management Questions and Answers

• 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?
• Which of the following ratios are basically the measures of yield or return. 
• An analysis in which the firm’s ratio values are compared to those of a key competitor or group of competitors, primarily to identify areas for improveme...
• The _________ of a business firm is measured by its ability to satisfy its short-term obligations as they become due.
• _______ refers to the information collected by an auditor to ascertain the accuracy and compliance of a company's financial statements.
• As per the guidelines of the Basel Committee for Banking Supervision (BCBS), credit losses on stage 1 assets will be categorised as _______ provisions and ...
• Which ratios are a measure of the speed with which various accounts are converted into sales or cash?
• Which of the following ratio is useful in evaluating credit and collection policies?
• Net working capital is defined as?
• The two basic measures of liquidity are?
•  If the inventory turnover is divided by 365, it becomes a measure of
• Which analysis involves the comparison between the current and historical financial performance and the evaluation of developing trends.
• Which of the following Schemes allows the retail investors to Open & maintain retail Gilt account with RBI?
• Assets categorized in stage 3 cannot be directly brought to Stage 1 even after the irregularities are rectified, for how much time bank must keep stage 3 a...
• Under the proposed framework for adoption of an expected loss-based approach for provisioning by banks in India, which of the following is NOT a key requir...
• As far as the features of the Pradhan Mantri Vaya Vandana Yojana (PMVVY) goes, which of the following is true if the pensioner dies during the policy term ...
• What is the major difference between Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) & Pradhan Mantri Suraksha Bima Yojana (PMSBY)?
• Pradhan Mantri Shram Yogi Maan-Dhan Yojana assures a minimum assured pension of ________ upon attaining the age of 60 years.
• To mitigate concerns relating to model risk and significant variability in expected credit loss models, the Discussion Paper proposes the following mitigan...
• Under the proposed framework on ECL model for bank, interest income will be recognised on what basis for stage 3 assets?
• What is the maximum one can deposit in the Sukanya Samriddhi Account?