Management of Cash & Marketable Securities – Financial and Strategic Management MCQ

The actual return of GK Ltd. for the last four years is 20%, 14%, 17%, and 18%. GK Ltd. has a beta of 1.15. Return on the market portfolio is 15%. The risk-free rate of return is 6%. Compute Alpha value and decide whether to hold, buy or sell the security?

Depreciation provided during the year: Furniture ₹ 15,000, Building ₹ 14,000. The statement of P&L for the year:Opening balance ₹ 38,500 Add Profit for the year ₹ 40,300, Less: Goodwill wrote off ₹ 15,000, Closing balance ₹ 63,800.What will be the amount of cash from operations?

Sales for October, November and December, 2018 are ₹ 90,000,11,10,000 and t 80,000 respectively. 40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in the month after-sales and take a 2% discount on it. Balance is expected to pay in second-month after-sales and 3% of it is expected to bad debts.What are the sales receipts to be shown in the cash budget for the month of December?

Which one of the following is false?

Working capital will not change if there is:

Which of the following involves a movement of cash?

While preparing the cash budget, which of the following items would not be included

Kriti Ltd. has provided the following information for the quarter of January to March:2096 of the sales are on a cash basis and balance on a credit basis. The amount to be collected from debtors in the month of February and March will be

June 2015: Estimated wages for January is ₹ 4,000 and for February ₹ 4,400. If the delay in payment of wages is 1 /2 month, the number of wages to be considered in the cash budget for the month of February will be__

: In Rise Ltd., cash sales is 25% and credit sales 75%. Sales for November, 2014 is ₹ 15,00,000, December, 2014 ₹ 14,00,000, January, 2015 ₹ 16,00,000, February, 2015 ₹ 10,00,000 & March, 2015 ₹ 9,00,000. 60% of the credit sales are collected in the next month after sales, 30% in the second month and 10% in the third month. No bad debts are anticipated. The cash collected in the month of March, 2015 from debtors is

: In an organization, cash sales are 25% and credit sales are 75%. Sales for October, 2013 is ₹ 12,00,000, November, 2013 ₹ 14,00,000, December, 2013 ₹ 16,00,000, January, 2014 ₹ 6,00,000 and February, 2014 ₹ 8,00,000. 60% of credit sales are collected in the next month after-sales, 30% in the second month, and 10% in the third month. No bad debts are anticipated. The cash collected in the month of February 2014 from debtors is___

The following information is available:Wages for January: ₹ 20,000Wages for February: ₹ 22,000Delay in payment of wages: 1/2 monthThe amount of wages paid during the month of February is

The annual cash requirement of A Ltd. is ₹ 10,00,000. The cost of conversion of marketable securities per lot is ₹ 1,000. The company can earn a 5% annual yield on its securities. Optimal cash balance = ? and No. of transactions =?

Z Ltd. has a separate account for cash disbursement. Estimated cash payments of ₹ 6,56,250 for a one-month period and the payments are expected to steady over the period. The fixed cost per transaction is ₹ 20 and the interest rate on marketable securities yields 10% p.a.

The annual cash requirement of A Ltd. is ₹ 10,00,000. The company has marketable securities in lot size of ₹ 1,00,000. The cost of conversion of marketable securities per lot is ₹ 1,000. The company can earn a 5% annual yield on its securities. Calculate the total cost.

JPL has two dates when it receives its cash inflows, ie. Feb. 15 and Aug. 15. On each of these dates, it expects to receive ₹ 15 Crores. Cash expenditure is expected to be steady throughout the subsequent 6 month period. Presently, the ROI in marketable securities is 8% p.a., and the cost of transfer from securities to cash is ₹ 125 each time a transfer occurs. What is the optimal transfer size using the EOQ model? What is the average cash balance?

If the beginning balance of cash is ₹ 5,000 and the desired closing cash balance is ₹ 10,000, with the only other cash-related items being sales/revenue ₹ 15,00,000, direct materials purchases ₹ 10,45,000, and cost of direct labor ₹ 4,68,000, what would be the surplus or deficit of cash at the end of the period?

BDL Ltd. is currently preparing its cash budget for the year to 31 March 2019. An extract from its sales budget for the same year shows the following sales values.

The budgeted sales for the next four quarters are ₹ 1,92,000, ₹ 2,88,000, ₹ 2,88,000 & ₹ 3,36,000, respectively. It is estimated that sales will be paid as follows:75% of the total will be paid in the quarter that the sales were made. Of the balance, 50% will be paid in the quarter after the sale was made. The remaining 50% will be paid in the quarter after this.The amount of cash received in quarter 3 will be

Z Ltd. has an estimated cash payment of ₹ 8,00,000 for a one-month period and the payments are expected to steady over the period. The fixed cost per transaction is ₹ 250 and the interest rate on marketable securities is 12% p.a. Optimal cash balance = ? and No. of transaction =?

The term cash includes

Cash flow is –

Net profit + Non-cash expenditure

The statement of cash flows tells us__

The cash Budget statement shows the position of the business as one of the business period.

Companies hold the cash from time to time. Transaction motive of holding cash means

Non-cash transactions

Cash management is a broad term used for collecting and managing cash. The speculative motive of holding cash refers to –

A cash budget is like an income statement.

Availability float is the

Which of the following items would have to be included for a company preparing a schedule of cash receipts and disbursements for the calendar year 2019?

Deposit float is the

Collection float is the

Which of the following would be found in a cash budget?

Which of the following statements most accurately describes the modern approach to cash management?

Advantages of maintaining cash budgets would not include one of the following:

The optimal balance of marketable securities held to take care of probable deficiencies in the firm’s cash account is referred to as the segment in the firm’s portfolio of short-term marketable securities.

Which of the following would NOT lead to an increase in net cash flow?

Which of the following is least likely to be considered short-term marketable security?

NSZ Ltd. cash budget forewarns of a short-term surplus. Which of the following would be the appropriate action to be taken in such a situation?

A cash budget for the six months ended 30th September 2020 shows an anticipated overdraft of approximately t 9,05,500. Which of the following would reduce the expected overdraft?

Of the four costs shown below, which would not be included in the cash budget of an insurance firm?

Which of the following is not true about a cash budget?

Which of the following will NOT appear in a Cash Budget?