The primary goal of financial management is: MCQ with Answer and Explanation

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The primary goal of financial management is:

A. Maximising shareholder wealth

B. Minimising risk

C. Maximising earnings per share (EPS)

D. Maximising revenue

Answer: Option A

Solution (By JKExamLibrary)

The prime objective is wealth maximisation, reflected in market value of shares.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1 Report Error

The 'Sustainability Reporting' in India for top listed companies is mandated by:

A. MCA

B. SEBI (Business Responsibility and Sustainability Report - BRSR)

C. ICAI

D. RBI

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Correct Answer: Option B

Explanation:
SEBI requires the top 1000 listed companies to file BRSR.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

The 'Independence' of an auditor is required because:

A. To increase revenue

B. To reduce fees

C. To comply with company law only

D. To maintain objectivity and impartiality in the audit opinion

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Correct Answer: Option D

Explanation:
Independence ensures unbiased opinion.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

The formula for debt-equity ratio is:

A. Current liabilities / Equity

B. Long-term debt / Shareholders' funds

C. Total debt / Total assets

D. Short-term debt / Equity

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Correct Answer: Option B

Explanation:
Debt-equity ratio = Long-term debt / Shareholders' funds (equity).

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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