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

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The primary objective of Financial Management is:

A. Wealth maximization of shareholders

B. Maximizing market share

C. Minimizing taxes

D. Profit maximization

Answer: Option A

Solution (By JKSSB Mock Tests)

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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Question #1

The use of artificial intelligence (AI) in accounting is currently transforming:

A. The legal definition of a company

B. The basic accounting equation

C. Automated invoice processing and anomaly detection

D. The abolition of all taxes

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Correct Answer: Option C

Explanation:
AI automates routine tasks like data entry and enhances fraud detection by recognizing patterns (anomalies) faster than human auditors.

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Question #2

Which of the following is a feature of financial management?

A. It is only for non-profit organizations

B. It is only concerned with raising funds

C. It ignores the time value of money

D. It is a specialized branch of general management

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Correct Answer: Option D

Explanation:
Financial management is a specialized branch of general management that deals with the planning, organizing, and controlling of financial activities.

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Question #3

In the context of the Trial Balance, which of the following is correct?

A. It is an account in the ledger.

B. It is prepared at the beginning of the year.

C. It provides a summary of all ledger balances.

D. It proves that no errors have been made.

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Correct Answer: Option C

Explanation:
A Trial Balance is a statement (not an account) that summarizes all ledger balances to check arithmetical accuracy.

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