Which of the following decisions relates to determining the optimal capital structure? MCQ with Answer and Explanation

Which of the following decisions relates to determining the optimal capital structure?
A. Dividend Decision
B. Investment Decision
C. Liquidity Decision
D. Financing Decision
Answer: Option D
Solution (By JKSSB Mock Tests)
The financing decision involves choosing the right mix of debt and equity (capital structure) to minimize the overall cost of capital.

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Practice More Accountancy and Book Keeping Questions

Question #1
Integrated Reporting (IR) differs from traditional financial reporting because it:
A. Combines financial and non-financial data to show how value is created over time
B. Only reports cash flows
C. Is used strictly for internal management
D. Eliminates the balance sheet

Correct Answer: Option A


Explanation:
IR provides a holistic view of the organization by interconnecting financial performance with sustainability, capitals (human, natural), and strategy.

Question #2
The 'Investor Education and Protection Fund' (IEPF) is established under:
A. Income Tax Act
B. SEBI Act
C. Companies Act, 2013
D. RBI Act

Correct Answer: Option C


Explanation:
IEPF is constituted under Section 125 of Companies Act, 2013.

Question #3
The 'Faceless Penalty' scheme under income tax was introduced in:
A. 2021
B. 2019
C. 2017
D. 2020

Correct Answer: Option A


Explanation:
Faceless penalty scheme was launched in 2021 to impart transparency.