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- 1. Multiple Choice
Which motive provides a cushion or buffer to withstand some unexpected emergency
speculative motive
transaction motive
precautionary motive
All the above
- 2. Multiple Choice
Name the technique to plan and control the use of cash ?
cash budgeting
cash planning
cash collection
none of the above
- 3. Multiple Choice
What are the functions of short term cash forecasts?
To determine operating cash balance
To anticipate short term financing
To manage investment of surplus cash
all the above
- 4. Multiple Choice
How many methods are there for accelerating cash collection ?
Six
four
five
two
- 5. Multiple Choice
Which instrument have low discounting charge ?
Cheaques
Docimentary bills
none of the above
Both b and c
- 6. Multiple Choice
Which instrument cannot go through clearing
Cheaques
Dividend warrents
promissory notes
refund orders
- 7. Multiple Choice
What must be the foundation of a good internal control system ?
Review authorized signers
Remember the wire transfer
segregation of duties
All the above
- 8. Multiple Choice
What happens if a firm keeps high cash balance ?
High profitability and low liquidity
No changes
High profitability and high liquidity
High liquidity and low profitability
- 9. Multiple Choice
Which Consider cash management similar to inventory management ?
Pament float
Millers -orr model
Lock box system
Baumol model
- 10. Multiple Choice
What is the formula to calculate optimum cash balance ?
C(T/C)
C/2
- 11. Multiple Choice
Which model comes under optimum cash balance under uncertainty ?
Baumol Model
Miller -orr model
Both a and b
none of the above
- 12. Multiple Choice
What is the formula to calculate average cash balance in miller -orr model ?
T/c
Lower limit +4/32
lower limit +Z
Both a and b
- 13. Multiple Choice
Which is issued with maturity of three moths to one year ?
Treasury bills
Documentary bill
Commercial Paper
Both b and c
- 14. Multiple Choice
What is the minimum lock in period for MMF's ?
60 days
1 year
30 days
15 days
- 15. Multiple Choice
what are the important aspects of marketability ?
Price
Time
Maturity
Both a and b
- 16. Multiple Choice
From the following which is the category of cash inflow ?
Capital expenditure
non - operating
Contractual
Discreationary
- 17. Multiple Choice
Which method summarizes the cash flows during a predetermined period ?
Adjusted net income method
receipt and disbursement method
Both a and b
none of the above
- 18. Multiple Choice
what are the facets of cash management ?
Cash planning
Optimum cash level
Managing the cash inflow
All the above
- 19. Multiple Choice
Which allows he bussiness to pay its own bills and other obligations in time ?
Managing cash collections
Accelerating cash collections
Forecasting
All the above
- 20. Multiple Choice
From the following which is the assumption of Baumol's model ?
The firm's cash payments occurs uniformly over a period of time
The firm is able to forecast its needs with uncertainity
Both a and b
none of the above
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