The primary objective of Financial Management is: MCQ with Answer and Explanation

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The primary objective of Financial Management is:

A. Profit maximization

B. Minimizing taxes

C. Maximizing market share

D. Wealth maximization of shareholders

Answer: Option D

Solution (By JKExamLibrary)

Wealth maximization is considered the superior objective as it accounts for long-term value creation, risk, and the time value of money.

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

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

The 'Statement of Affairs' under single entry is similar to:

A. Balance Sheet

B. Profit and Loss Account

C. Trading Account

D. Cash Flow Statement

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Correct Answer: Option A

Explanation:
Statement of affairs shows assets and liabilities, akin to a balance sheet.

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

Question #2 Report Error

An amount received from a debtor whose account was previously written off as bad debt is:

A. Debited to Bad Debts A/c

B. Credited to Sales A/c

C. Credited to Debtor's A/c

D. Credited to Bad Debts Recovered A/c

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Correct Answer: Option D

Explanation:
It represents a new gain and is credited to Bad Debts Recovered, a nominal account, without reopening the debtor's account.

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

Question #3 Report Error

The 'Qualifying Asset' under Ind AS 23 includes:

A. Assets that take a substantial period of time to get ready for their intended use or sale

B. Inventories routinely manufactured in large quantities

C. All fixed assets

D. All intangible assets

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Correct Answer: Option A

Explanation:
Qualifying asset requires substantial time to get ready.

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

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