MGT201 Final Term Solved MCQs by Team Masters

MGT201 FINAL TERM QUIZES SOLVED BY MASTERS QUIZ 1: MODULE 6 AND 7

1. Cash collected from debtors is an example of:

Cash flow from operating activities Cash flow from financing activities Cash flow from investing activities None of the given options

2. Cash flows as a result of changes in accounts receivable are

Q3. Keeping in mind the concept of market portfolio, which of the following statement is false?

The market portfolio lies on the capital market line The market portfolio contains both systematic and unsystematic risk The market portfolio lies on the security market line The market portfolio includes all risky assets in the world

4. While calculating cash flow from operating activities, we add

Non-cash expenses

Decrease in current assets Increase in current liabilities

Q5. Which of the following is not an example of cash flows from investing activities?

Sale of equipment Purchase of bonds of other companies Purchase of a land Repayment of loan

Q6. Which of the following statement is true regarding covariance?

The covariance can take on any negative, positive or a zero value The covariance is always positive because it is a squared value The range of covariance lies between -1 to +1 The covariance can never be negative

7. While calculating cash flow from financing activities, we subtract

Payment of long term debt Payment of dividend

Purchase of treasury stock

8. Coefficient of variation is a measure of relative dispersion (risk)
9. Cash flows as a result of changes in shareholders' equity are
10. Interest is the cost of financing which is charged against: