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

Question
The primary goal of financial management is:
A. Maximising earnings per share (EPS)
B. Minimising risk
C. Maximising revenue
D. Maximising shareholder wealth
Answer: Option D
Solution (By JKSSB Mock Tests)
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
A: Zero-Based Budgeting requires justification for all expenses. R: It starts with a zero base for every new period. Choose the correct option.
A. Both A and R are true but R is NOT the correct explanation of A
B. A is true but R is false
C. A is false but R is true
D. Both A and R are true and R is the correct explanation of A
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Correct Answer: Option D

Explanation:
ZBB requires managers to justify every item of expenditure from scratch. This is because it starts with a 'zero base' for each new period, rather than using the previous year's budget as a baseline. R correctly explains A.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Transfer Pricing' regulations in India are contained in:
A. GST Act
B. SEBI Act
C. Sections 92 to 92F of Income Tax Act
D. Companies Act
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Correct Answer: Option C

Explanation:
Transfer pricing provisions apply to international transactions and specified domestic transactions.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
In a common size income statement, all items are expressed as a percentage of:
A. Total assets
B. Revenue from operations (net sales)
C. Gross profit
D. Net profit
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Correct Answer: Option B

Explanation:
Common size income statement base is net sales/revenue from operations.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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