Financial Management aims at 'Wealth Maximization', which means maximizing: MCQ with Answer and Explanation

Question
Financial Management aims at 'Wealth Maximization', which means maximizing:
A. Net profit after tax
B. Market value per share
C. Book value of assets
D. Sales volume
Answer: Option B
Solution (By JKSSB Mock Tests)
Wealth maximization implies increasing the net present value of the firm, reflected in the increased market price of its equity shares.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Equalisation Levy' at 6% applies to:
A. E-commerce operators
B. Specified services like online advertisement provided by non-residents
C. All digital services
D. All goods
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Correct Answer: Option B

Explanation:
Equalisation levy at 6% is on consideration for specified digital services by non-residents; a separate 2% levy on e-commerce supply.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
If rent paid is Rs 10,000 and prepaid rent at year-end is Rs 2,000, what is the rent expense for the current year under accrual accounting?
A. Rs 10,000
B. Rs 2,000
C. Rs 12,000
D. Rs 8,000
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Correct Answer: Option D

Explanation:
Current year expense = Paid amount - Prepaid for next year = 10,000 - 2,000 = Rs 8,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The maximum number of partners in a banking partnership is:
A. No limit
B. 10
C. 50
D. 20
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Correct Answer: Option B

Explanation:
As per Banking Regulation Act, the maximum number of partners for a banking firm is 10.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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