LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer*Question -
Due to diversification employees seek:-Correct Answer
Higher compensation , Job security , Better opportunities within the firm
Your Answer
Higher compensation , Job security , Better opportunities within the firm
Select The Blank*Question -
A geographical segment cannot be ________.Correct Answer
Countries in different zones
Your Answer
A single country
Select The Blank*Question -
A shareholder expects a higher rate of return as a firm's compensation for ________.Correct Answer
Increased risk
Your Answer
Increased risk
Multiple Choice Single Answer*Question -
Most companies focus only on :-Correct Answer
Return on investment
Your Answer
Return on investment
Multiple Choice Multiple Answer*Question -
As a general rule, an asset is :-Correct Answer
A good or a right that a firm owns in a determined moment , Prepayment adjustments , Capitalized expenses
Your Answer
A good or a right that a firm owns in a determined moment , Prepayment adjustments , Capitalized expenses
Multiple Choice Multiple Answer*Question -
In the disclosures in financial statements, there are significant restrictions on :-Correct Answer
The right of ownership , Realisability of investments , The remittance of income & proceeds of disposal
Your Answer
The right of ownership , The remittance of income & proceeds of disposal , Other disclosures
Multiple Choice Single Answer*Question -
Equity includes :-Correct Answer
Development Rebate Reserve
Your Answer
Deferred Payment Liabilities
Match The Following
Question
Correct Answer
Your Answer
Free cash flow theory
Enormous conflicts of interest between Stakeholders and shareholders
Enormous conflicts of interest between Stakeholders and shareholders
Net income approach
Cost of debt & equity do not change with a change in leverage ratio
Cost of debt & equity do not change with a change in leverage ratio
Net operating income approach
The overall capitalization rate remains constant for all levels of financial leverages
The overall capitalization rate remains constant for all levels of financial leverages
Modigliani - Miller Theory
weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure
weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure
True/False*Question -
Organisational changes are similar to mission changes.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question -
Which of the following is NOT A Characteristic of declining firm :-Correct Answer
The optimum payout ratio for a declining firm is not 100 %
Your Answer
The firm should not reinvest any profits
Select The Blank*Question -
A company shall buyback its shares through the stock exchange by making a public announcement at least ________ days prior to the commencement of buyback.Correct Answer
Seven
Your Answer
Fourteen
True/False*Question -
Money becomes less valuable when received at a latter stage instead of in present time.Correct Answer
True
Your Answer
True
Select The Blank*Question -
The resource theory considers that the competitive position of a firm depends on its ________ Assets.Correct Answer
Specific
Your Answer
Intangible
Multiple Choice Multiple Answer*Question -
A firm having aggressive policy of investing in current assets will show the following features :-Correct Answer
Frequent production stoppages , High ROI
Your Answer
Frequent production stoppages , High ROI , Timely deliveries to customer
True/False*Question -
Making decision on dividend is a very crucial area of financial management for a firm.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question -
Segment reporting comes under :-Correct Answer
AS 17
Your Answer
AS 17
True/False*Question -
Usually cost data is perfect for ABC Analysis & distribution.Correct Answer
False
Your Answer
False
Multiple Choice Single Answer*Question -
As per Pecking order theory, which is the costliest means of funding :-Correct Answer
Equity Shares
Your Answer
Equity Shares
Match The Following
Question
Correct Answer
Your Answer
Mechanisms
Performs or provides energy to an activity
Performs or provides energy to an activity
Inputs
Information or material used to produce the output of an activity
Information or material used to produce the output of an activity
Controls
Information or material that constrains an activity
Information or material that constrains an activity
Outputs
Information or material produced by an activity
Information or material produced by an activity
True/False*Question -
According to NOI Approach, any capital structure is optimum.Correct Answer
True
Your Answer
True
Select The Blank*Question -
The ________ often gives the best insight into the borrower's short term credit needs.Correct Answer
Cash budget
Your Answer
Market research
Select The Blank*Question -
If firms have same technology ________ makes the difference i.e. firms become more productive .Correct Answer
Solid human resource team
Your Answer
Latest & updated techniques
True/False*Question -
Explicit cost and implicit cost are the two parts of cost of debt.Correct Answer
True
Your Answer
True
Select The Blank*Question -
If a segment is not designated as a ________ it should be included as an unallocated reconciling item.Correct Answer
Reportable segment
Your Answer
Business segment
Multiple Choice Single Answer*Question -
Research into true human resources accounting began in :-Correct Answer
1960`s
Your Answer
1960`s
Select The Blank*Question -
Increase in cost of capital means decrease in ________.Correct Answer
Profitability
Your Answer
Expected returns
True/False*Question -
According to NI Approach, decrease in leverage decreases the overall cost of capital and increases the firm's value.Correct Answer
False
Your Answer
True
Multiple Choice Multiple Answer*Question -
Accrued expenses represent :-Correct Answer
Costless financing , An interest free source of financing
Your Answer
Costless financing , An interest free source of financing
Multiple Choice Multiple Answer*Question -
The direct costs tier normally only includes the following :-Correct Answer
The personnel payroll , Supplies , Individual rental equipment
Your Answer
The personnel payroll , Supplies , Individual rental equipment
Multiple Choice Single Answer*Question -
Fixed price tender offers are accompanied by an abnormal announcement period return of :-Correct Answer
8 - 10 %
Your Answer
6 - 8 %
Multiple Choice Single Answer*Question -
Many companies claim their main assets are their :-Correct Answer
People
Your Answer
Land
Multiple Choice Multiple Answer*Question -
The main assumptions for stock repurchase models are as follows :-Correct Answer
The market is efficient , There is perfect competition in the securities market
Your Answer
The market is efficient , There is perfect competition in the securities market , Investors are not very keen to maximize the value of their investment
Multiple Choice Single Answer*Question -
The Buy back of shares shall not be made fromCorrect Answer
The promoters or persons in control of the company
Your Answer
The promoters or persons in control of the company
True/False*Question -
Opportunity costs and real costs decrease the market value of a firm.Correct Answer
True
Your Answer
False
True/False*Question -
Retained earnings are the most important internal sources of financing the growth of the firm.Correct Answer
True
Your Answer
True
True/False*Question -
The chance of bankruptcy is small when the leverage of a firm is small.Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer*Question -
Examples of accounting methods used by firm are :-Correct Answer
FIFO , LIFO , Accrual Accounting
Your Answer
FIFO , LIFO , Overhead calculations
Multiple Choice Single Answer*Question -
For the following process the valuation is needed to decide the price at which the deal will be possibly concluded :-Correct Answer
Mergers & Acquisitions
Your Answer
Computation of wealth tax & gift tax
True/False*Question -
Diversification helps in preserving a firm's reputation & goodwill.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question -
According to Net Income Approach, the average cost of capital declines as the leverage ratio :-Correct Answer
Increases
Your Answer
Increases
True/False*Question -
Whether a lease is a finance lease or an operating lease depends on the substance of the transaction rather than its form.Correct Answer
False
Your Answer
True
Select The Blank*Question -
Forfeiting is mostly used for ________.Correct Answer
Big ticket items & durable goods
Your Answer
Big ticket items & durable goods
Multiple Choice Multiple Answer*Question -
The financial framework of a merger decision covers 3 interrelated aspects i.e. :-Correct Answer
Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision
Your Answer
Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision
True/False*Question -
For determining exchange ratio, the model developed by Conn & Nielson is used.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question -
One of the important assumptions for capital structure theories is :-Correct Answer
Debt and equity are the 2 kinds of funds used by the firm
Your Answer
Debt and equity are the 2 kinds of funds used by the firm
Select The Blank*Question -
________ are not diversible.Correct Answer
Market related risks
Your Answer
Market related risks
Multiple Choice Multiple Answer*Question -
The financial managers of a company consume a great deal of their time in activities like :-Correct Answer
Monitoring the investment in inventories , Negotiating favourable credit terms , Administrating Accounts receivables
Your Answer
Monitoring the investment in inventories , Negotiating favourable credit terms , Administrating Accounts receivables
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer*Question -
The different types of floats are :-Correct Answer
Postal float , Deposit float , Bank float
Your Answer
Postal float , Deposit float , Bank float
Multiple Choice Single Answer*Question -
A low payout policy implies :-Correct Answer
More retention of profits
Your Answer
More retention of profits
True/False*Question -
optimum cash balance under certainty i.e. Baumul`s model allows the cash flow to fluctuate.Correct Answer
False
Your Answer
True
Multiple Choice Single Answer*Question -
Companies often need to value its own :-Correct Answer
Shares
Your Answer
Liabilities
Select The Blank*Question -
Postage is an example of ________ cost.Correct Answer
Non traceable cost
Your Answer
Non traceable cost
Multiple Choice Single Answer*Question -
Value added analysis :-Correct Answer
Helps to identify potential activities that may be omitted immediately
Your Answer
Helps to identify potential activities that may be omitted immediately
Multiple Choice Multiple Answer*Question -
Intangible assets include :-Correct Answer
Preliminary expenses , Deferred revenue expenditure , Discount on issues of shares / debenture etc
Your Answer
Preliminary expenses , Deferred revenue expenditure , Discount on issues of shares / debenture etc
Multiple Choice Single Answer*Question -
The Management of the Company may enter into a negotiated purchase, which is referred to as :-Correct Answer
Greenfield
Your Answer
Forward Contracts
Multiple Choice Single Answer*Question -
If the segment result of a segment includes interest expense its segment liabilities include :-Correct Answer
The related interest bearing liabilities
Your Answer
The related interest bearing liabilities
Select The Blank*Question -
As per NOI Approach - the overall capitalization rate remains ________ for all levels of financial leverage.Correct Answer
Constant
Your Answer
Constant
Match The Following
Question
Correct Answer
Your Answer
Exit cost
Lost efficiency prior to separation, Job vacancy cost during the new search & termination pay.
Lost efficiency prior to separation, Job vacancy cost during the new search & termination pay.
Historical costs
Sacrifice necessary to hire & train people
Sacrifice necessary to hire & train people
Substitution cost
Exit costs of the leaving employee & recruiting & training of the replacement
Exit costs of the leaving employee & recruiting & training of the replacement
Opportunity cost
An asset value when they are the target of an alternative use.
An asset value when they are the target of an alternative use.
Multiple Choice Single Answer*Question -
Suppliers of equity are interested in :-Correct Answer
High share prices
Your Answer
High share prices
Multiple Choice Multiple Answer*Question -
The 3 groups of participants in a firm are :-Correct Answer
Suppliers of equity , Debt suppliers , Firm Managers
Your Answer
Suppliers of equity , Debt suppliers , Firm Managers
True/False*Question -
It is possible to place a single value for the acquired firm.Correct Answer
False
Your Answer
True
Select The Blank*Question -
________ is never a part of the output.Correct Answer
Mechanisms
Your Answer
Mechanisms
Multiple Choice Multiple Answer*Question -
Exit costs are classified into 3 categories namely :-Correct Answer
Lost efficiency prior to separation , Job vacancy cost during the new search , Termination pay
Your Answer
Recruiting new employee as a replacement of the left employee , Lost efficiency prior to separation , Termination pay
True/False*Question -
A transport corporation has a substantial working capital requirement.Correct Answer
False
Your Answer
True
Select The Blank*Question -
________ know the best about a firm's performance.Correct Answer
Firm Managers
Your Answer
Business analysts
Multiple Choice Multiple Answer*Question -
As per AS 13 Statement, the following are not considered as investments:-Correct Answer
Shares , Debentures , Other securities held as stock in trade
Your Answer
Shares , Debentures , Other securities held as stock in trade
Multiple Choice Multiple Answer*Question -
The employer in offering the job contract assumes a range of legal obligations such as :-Correct Answer
Rewards - cash like & non cash like , Health & safety policies , Pensions & contributions to social security payments
Your Answer
Rewards - cash like & non cash like , Health & safety policies , Pensions & contributions to social security payments
True/False*Question -
It is essential that ABC must fit into the strategy of the company.Correct Answer
True
Your Answer
False
True/False*Question -
Trade credit creates book debts which the firm is expected to collect in the near future.Correct Answer
True
Your Answer
True
Select The Blank*Question -
At times managers invest in projects that improve the company's ________.Correct Answer
Prestige or power
Your Answer
Prestige or power
Select The Blank*Question -
Business risk & financial risk do not have any influence on ________.Correct Answer
Accounting numbers
Your Answer
Banks
True/False*Question -
The objective of a dividend policy should be to maximize shareholder's return so that the value of his investment is maximized.Correct Answer
False
Your Answer
True
True/False*Question -
A change in the method of depreciation is treated as a change in an accounting policy and is disclosed accordingly.Correct Answer
True
Your Answer
True
Select The Blank*Question -
________ is not a characteristic of financial conglomerates.Correct Answer
Provide ineffective competitive process
Your Answer
Provide ineffective competitive process
Select The Blank*Question -
There is a ________ relationship between the number of employees & the use of operating supplies.Correct Answer
Natural
Your Answer
Natural
Multiple Choice Single Answer*Question -
If a firm opts for restrictive policy then the investments in current assets is :-Correct Answer
Low
Your Answer
Low
Match The Following
Question
Correct Answer
Your Answer
AS 17
Segment reporting
Segment reporting
AS 19
Leases
Leases
AS 6
Depreciation accounting
Depreciation accounting
AS 10
Accounting for fixed assets
Revenue recognition
True/False*Question -
To `gather costs', means capturing all relevant expenses that pertain to the selected model and processes.Correct Answer
True
Your Answer
True
Select The Blank*Question -
Investors can reduce the company related risk by diversification of their investments in ________.Correct Answer
Shares of a large number of companies
Your Answer
Fixed deposits of a company
Multiple Choice Multiple Answer*Question -
For ABC Analysis the available cost data :-Correct Answer
Has to be adjusted for change , Has to be corrected for undocumented element costs , Has to be combined with different types of data from alternate sources
Your Answer
Has to be adjusted for change , Has to be corrected for undocumented element costs , Has to be combined with different types of data from alternate sources
Multiple Choice Multiple Answer*Question -
The external staffing performance indicators include :-Correct Answer
Compensation per Re. Profit , Personnel services head count , Profit per head
Your Answer
Compensation per Re. Profit , Personnel services head count , Profit per head
Select The Blank*Question -
HLL the largest FMCG company has a turnover of Rs. ________.Correct Answer
118 Bn
Your Answer
118 Bn
Select The Blank*Question -
Segment expense includes ________.Correct Answer
The relevant portion of enterprise revenue that can be allocated on a reasonable basis to a segment
Your Answer
The relevant portion of enterprise revenue that can be allocated on a reasonable basis to a segment
Multiple Choice Multiple Answer*Question -
The important aspect of dividend policy is :-Correct Answer
To determine the amount of earnings to be distributed to shareholders , Amount to be retained in the firm
Your Answer
To determine the amount of earnings to be distributed to shareholders , Amount to be retained in the firm , To dispatch the dividend warrants in time
Select The Blank*Question -
In today's fast moving world, the quickest way to get information on a firm is through ________.Correct Answer
Internet
Your Answer
Internet
Multiple Choice Multiple Answer*Question -
The main characteristics of operating economies are :-Correct Answer
It is achieved through horizontal, vertical and conglomerate mergers , It occurs due to indivisibilities of resources , It is possible in generic management functions
Your Answer
It is achieved through horizontal, vertical and conglomerate mergers , It occurs due to indivisibilities of resources , It is possible in generic management functions
Multiple Choice Single Answer*Question -
Segment liabilities do not include :-Correct Answer
Borrowings & other liabilities that are incurred for financing rather than operating purpose
Your Answer
Borrowings & other liabilities that are incurred for financing rather than operating purpose
Multiple Choice Single Answer*Question -
Which of the following company is reaping high market valuation due to showing human resources as an asset in its balance sheet information?Correct Answer
Infosys
Your Answer
Infosys
True/False*Question -
In market value approach, interested parties never manipulate the stock markets.Correct Answer
False
Your Answer
False
Multiple Choice Single Answer*Question -
The stock value for a company will be considered to be fair value for ordinary transactions if the shares are :-Correct Answer
Listed
Your Answer
Listed
True/False*Question -
Planning helps an acquiring firm to identify the units it should drop & it should add.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question -
For paying dividends, firms will have a given amount of :-Correct Answer
Cash available
Your Answer
Cash available
Multiple Choice Single Answer*Question -
The depreciation rates or the useful lives of the assets are disclosed only :-Correct Answer
If they are different from the principle rates specified in the statute
Your Answer
If specifically asked by the Chartered accountant of the company
Select The Blank*Question -
Earning power of the company approach tries to value the ________.Correct Answer
Current value of the assets
Your Answer
Current value of the assets
Multiple Choice Multiple Answer*Question -
Due to diversification employees seek:-Correct Answer
Higher compensation , Job security , Better opportunities within the firm
Your Answer
Higher compensation , Job security , Better opportunities within the firm
Select The Blank*Question -
A geographical segment cannot be ________.Correct Answer
Countries in different zones
Your Answer
A single country
Select The Blank*Question -
A shareholder expects a higher rate of return as a firm's compensation for ________.Correct Answer
Increased risk
Your Answer
Increased risk
Multiple Choice Single Answer*Question -
Most companies focus only on :-Correct Answer
Return on investment
Your Answer
Return on investment
Multiple Choice Multiple Answer*Question -
As a general rule, an asset is :-Correct Answer
A good or a right that a firm owns in a determined moment , Prepayment adjustments , Capitalized expenses
Your Answer
A good or a right that a firm owns in a determined moment , Prepayment adjustments , Capitalized expenses
Multiple Choice Multiple Answer*Question -
In the disclosures in financial statements, there are significant restrictions on :-Correct Answer
The right of ownership , Realisability of investments , The remittance of income & proceeds of disposal
Your Answer
The right of ownership , The remittance of income & proceeds of disposal , Other disclosures
Multiple Choice Single Answer*Question -
Equity includes :-Correct Answer
Development Rebate Reserve
Your Answer
Deferred Payment Liabilities
Match The Following
Question
Correct Answer
Your Answer
Free cash flow theory
Enormous conflicts of interest between Stakeholders and shareholders
Enormous conflicts of interest between Stakeholders and shareholders
Net income approach
Cost of debt & equity do not change with a change in leverage ratio
Cost of debt & equity do not change with a change in leverage ratio
Net operating income approach
The overall capitalization rate remains constant for all levels of financial leverages
The overall capitalization rate remains constant for all levels of financial leverages
Modigliani - Miller Theory
weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure
weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure
True/False*Question -
Organisational changes are similar to mission changes.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question -
Which of the following is NOT A Characteristic of declining firm :-Correct Answer
The optimum payout ratio for a declining firm is not 100 %
Your Answer
The firm should not reinvest any profits
Select The Blank*Question -
A company shall buyback its shares through the stock exchange by making a public announcement at least ________ days prior to the commencement of buyback.Correct Answer
Seven
Your Answer
Fourteen
True/False*Question -
Money becomes less valuable when received at a latter stage instead of in present time.Correct Answer
True
Your Answer
True
Select The Blank*Question -
The resource theory considers that the competitive position of a firm depends on its ________ Assets.Correct Answer
Specific
Your Answer
Intangible
Multiple Choice Multiple Answer*Question -
A firm having aggressive policy of investing in current assets will show the following features :-Correct Answer
Frequent production stoppages , High ROI
Your Answer
Frequent production stoppages , High ROI , Timely deliveries to customer
True/False*Question -
Making decision on dividend is a very crucial area of financial management for a firm.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question -
Segment reporting comes under :-Correct Answer
AS 17
Your Answer
AS 17
True/False*Question -
Usually cost data is perfect for ABC Analysis & distribution.Correct Answer
False
Your Answer
False
Multiple Choice Single Answer*Question -
As per Pecking order theory, which is the costliest means of funding :-Correct Answer
Equity Shares
Your Answer
Equity Shares
Match The Following
Question
Correct Answer
Your Answer
Mechanisms
Performs or provides energy to an activity
Performs or provides energy to an activity
Inputs
Information or material used to produce the output of an activity
Information or material used to produce the output of an activity
Controls
Information or material that constrains an activity
Information or material that constrains an activity
Outputs
Information or material produced by an activity
Information or material produced by an activity
True/False*Question -
According to NOI Approach, any capital structure is optimum.Correct Answer
True
Your Answer
True
Select The Blank*Question -
The ________ often gives the best insight into the borrower's short term credit needs.Correct Answer
Cash budget
Your Answer
Market research
Select The Blank*Question -
If firms have same technology ________ makes the difference i.e. firms become more productive .Correct Answer
Solid human resource team
Your Answer
Latest & updated techniques
True/False*Question -
Explicit cost and implicit cost are the two parts of cost of debt.Correct Answer
True
Your Answer
True
Select The Blank*Question -
If a segment is not designated as a ________ it should be included as an unallocated reconciling item.Correct Answer
Reportable segment
Your Answer
Business segment
Multiple Choice Single Answer*Question -
Research into true human resources accounting began in :-Correct Answer
1960`s
Your Answer
1960`s
Select The Blank*Question -
Increase in cost of capital means decrease in ________.Correct Answer
Profitability
Your Answer
Expected returns
True/False*Question -
According to NI Approach, decrease in leverage decreases the overall cost of capital and increases the firm's value.Correct Answer
False
Your Answer
True
Multiple Choice Multiple Answer*Question -
Accrued expenses represent :-Correct Answer
Costless financing , An interest free source of financing
Your Answer
Costless financing , An interest free source of financing
Multiple Choice Multiple Answer*Question -
The direct costs tier normally only includes the following :-Correct Answer
The personnel payroll , Supplies , Individual rental equipment
Your Answer
The personnel payroll , Supplies , Individual rental equipment
Multiple Choice Single Answer*Question -
Fixed price tender offers are accompanied by an abnormal announcement period return of :-Correct Answer
8 - 10 %
Your Answer
6 - 8 %
Multiple Choice Single Answer*Question -
Many companies claim their main assets are their :-Correct Answer
People
Your Answer
Land
Multiple Choice Multiple Answer*Question -
The main assumptions for stock repurchase models are as follows :-Correct Answer
The market is efficient , There is perfect competition in the securities market
Your Answer
The market is efficient , There is perfect competition in the securities market , Investors are not very keen to maximize the value of their investment
Multiple Choice Single Answer*Question -
The Buy back of shares shall not be made fromCorrect Answer
The promoters or persons in control of the company
Your Answer
The promoters or persons in control of the company
True/False*Question -
Opportunity costs and real costs decrease the market value of a firm.Correct Answer
True
Your Answer
False
True/False*Question -
Retained earnings are the most important internal sources of financing the growth of the firm.Correct Answer
True
Your Answer
True
True/False*Question -
The chance of bankruptcy is small when the leverage of a firm is small.Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer*Question -
Examples of accounting methods used by firm are :-Correct Answer
FIFO , LIFO , Accrual Accounting
Your Answer
FIFO , LIFO , Overhead calculations
Multiple Choice Single Answer*Question -
For the following process the valuation is needed to decide the price at which the deal will be possibly concluded :-Correct Answer
Mergers & Acquisitions
Your Answer
Computation of wealth tax & gift tax
True/False*Question -
Diversification helps in preserving a firm's reputation & goodwill.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question -
According to Net Income Approach, the average cost of capital declines as the leverage ratio :-Correct Answer
Increases
Your Answer
Increases
True/False*Question -
Whether a lease is a finance lease or an operating lease depends on the substance of the transaction rather than its form.Correct Answer
False
Your Answer
True
Select The Blank*Question -
Forfeiting is mostly used for ________.Correct Answer
Big ticket items & durable goods
Your Answer
Big ticket items & durable goods
Multiple Choice Multiple Answer*Question -
The financial framework of a merger decision covers 3 interrelated aspects i.e. :-Correct Answer
Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision
Your Answer
Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision
True/False*Question -
For determining exchange ratio, the model developed by Conn & Nielson is used.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question -
One of the important assumptions for capital structure theories is :-Correct Answer
Debt and equity are the 2 kinds of funds used by the firm
Your Answer
Debt and equity are the 2 kinds of funds used by the firm
Select The Blank*Question -
________ are not diversible.Correct Answer
Market related risks
Your Answer
Market related risks
Multiple Choice Multiple Answer*Question -
The financial managers of a company consume a great deal of their time in activities like :-Correct Answer
Monitoring the investment in inventories , Negotiating favourable credit terms , Administrating Accounts receivables
Your Answer
Monitoring the investment in inventories , Negotiating favourable credit terms , Administrating Accounts receivables
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer*Question -
The different types of floats are :-Correct Answer
Postal float , Deposit float , Bank float
Your Answer
Postal float , Deposit float , Bank float
Multiple Choice Single Answer*Question -
A low payout policy implies :-Correct Answer
More retention of profits
Your Answer
More retention of profits
True/False*Question -
optimum cash balance under certainty i.e. Baumul`s model allows the cash flow to fluctuate.Correct Answer
False
Your Answer
True
Multiple Choice Single Answer*Question -
Companies often need to value its own :-Correct Answer
Shares
Your Answer
Liabilities
Select The Blank*Question -
Postage is an example of ________ cost.Correct Answer
Non traceable cost
Your Answer
Non traceable cost
Multiple Choice Single Answer*Question -
Value added analysis :-Correct Answer
Helps to identify potential activities that may be omitted immediately
Your Answer
Helps to identify potential activities that may be omitted immediately
Multiple Choice Multiple Answer*Question -
Intangible assets include :-Correct Answer
Preliminary expenses , Deferred revenue expenditure , Discount on issues of shares / debenture etc
Your Answer
Preliminary expenses , Deferred revenue expenditure , Discount on issues of shares / debenture etc
Multiple Choice Single Answer*Question -
The Management of the Company may enter into a negotiated purchase, which is referred to as :-Correct Answer
Greenfield
Your Answer
Forward Contracts
Multiple Choice Single Answer*Question -
If the segment result of a segment includes interest expense its segment liabilities include :-Correct Answer
The related interest bearing liabilities
Your Answer
The related interest bearing liabilities
Select The Blank*Question -
As per NOI Approach - the overall capitalization rate remains ________ for all levels of financial leverage.Correct Answer
Constant
Your Answer
Constant
Match The Following
Question
Correct Answer
Your Answer
Exit cost
Lost efficiency prior to separation, Job vacancy cost during the new search & termination pay.
Lost efficiency prior to separation, Job vacancy cost during the new search & termination pay.
Historical costs
Sacrifice necessary to hire & train people
Sacrifice necessary to hire & train people
Substitution cost
Exit costs of the leaving employee & recruiting & training of the replacement
Exit costs of the leaving employee & recruiting & training of the replacement
Opportunity cost
An asset value when they are the target of an alternative use.
An asset value when they are the target of an alternative use.
Multiple Choice Single Answer*Question -
Suppliers of equity are interested in :-Correct Answer
High share prices
Your Answer
High share prices
Multiple Choice Multiple Answer*Question -
The 3 groups of participants in a firm are :-Correct Answer
Suppliers of equity , Debt suppliers , Firm Managers
Your Answer
Suppliers of equity , Debt suppliers , Firm Managers
True/False*Question -
It is possible to place a single value for the acquired firm.Correct Answer
False
Your Answer
True
Select The Blank*Question -
________ is never a part of the output.Correct Answer
Mechanisms
Your Answer
Mechanisms
Multiple Choice Multiple Answer*Question -
Exit costs are classified into 3 categories namely :-Correct Answer
Lost efficiency prior to separation , Job vacancy cost during the new search , Termination pay
Your Answer
Recruiting new employee as a replacement of the left employee , Lost efficiency prior to separation , Termination pay
True/False*Question -
A transport corporation has a substantial working capital requirement.Correct Answer
False
Your Answer
True
Select The Blank*Question -
________ know the best about a firm's performance.Correct Answer
Firm Managers
Your Answer
Business analysts
Multiple Choice Multiple Answer*Question -
As per AS 13 Statement, the following are not considered as investments:-Correct Answer
Shares , Debentures , Other securities held as stock in trade
Your Answer
Shares , Debentures , Other securities held as stock in trade
Multiple Choice Multiple Answer*Question -
The employer in offering the job contract assumes a range of legal obligations such as :-Correct Answer
Rewards - cash like & non cash like , Health & safety policies , Pensions & contributions to social security payments
Your Answer
Rewards - cash like & non cash like , Health & safety policies , Pensions & contributions to social security payments
True/False*Question -
It is essential that ABC must fit into the strategy of the company.Correct Answer
True
Your Answer
False
True/False*Question -
Trade credit creates book debts which the firm is expected to collect in the near future.Correct Answer
True
Your Answer
True
Select The Blank*Question -
At times managers invest in projects that improve the company's ________.Correct Answer
Prestige or power
Your Answer
Prestige or power
Select The Blank*Question -
Business risk & financial risk do not have any influence on ________.Correct Answer
Accounting numbers
Your Answer
Banks
True/False*Question -
The objective of a dividend policy should be to maximize shareholder's return so that the value of his investment is maximized.Correct Answer
False
Your Answer
True
True/False*Question -
A change in the method of depreciation is treated as a change in an accounting policy and is disclosed accordingly.Correct Answer
True
Your Answer
True
Select The Blank*Question -
________ is not a characteristic of financial conglomerates.Correct Answer
Provide ineffective competitive process
Your Answer
Provide ineffective competitive process
Select The Blank*Question -
There is a ________ relationship between the number of employees & the use of operating supplies.Correct Answer
Natural
Your Answer
Natural
Multiple Choice Single Answer*Question -
If a firm opts for restrictive policy then the investments in current assets is :-Correct Answer
Low
Your Answer
Low
Match The Following
Question
Correct Answer
Your Answer
AS 17
Segment reporting
Segment reporting
AS 19
Leases
Leases
AS 6
Depreciation accounting
Depreciation accounting
AS 10
Accounting for fixed assets
Revenue recognition
True/False*Question -
To `gather costs', means capturing all relevant expenses that pertain to the selected model and processes.Correct Answer
True
Your Answer
True
Select The Blank*Question -
Investors can reduce the company related risk by diversification of their investments in ________.Correct Answer
Shares of a large number of companies
Your Answer
Fixed deposits of a company
Multiple Choice Multiple Answer*Question -
For ABC Analysis the available cost data :-Correct Answer
Has to be adjusted for change , Has to be corrected for undocumented element costs , Has to be combined with different types of data from alternate sources
Your Answer
Has to be adjusted for change , Has to be corrected for undocumented element costs , Has to be combined with different types of data from alternate sources
Multiple Choice Multiple Answer*Question -
The external staffing performance indicators include :-Correct Answer
Compensation per Re. Profit , Personnel services head count , Profit per head
Your Answer
Compensation per Re. Profit , Personnel services head count , Profit per head
Select The Blank*Question -
HLL the largest FMCG company has a turnover of Rs. ________.Correct Answer
118 Bn
Your Answer
118 Bn
Select The Blank*Question -
Segment expense includes ________.Correct Answer
The relevant portion of enterprise revenue that can be allocated on a reasonable basis to a segment
Your Answer
The relevant portion of enterprise revenue that can be allocated on a reasonable basis to a segment
Multiple Choice Multiple Answer*Question -
The important aspect of dividend policy is :-Correct Answer
To determine the amount of earnings to be distributed to shareholders , Amount to be retained in the firm
Your Answer
To determine the amount of earnings to be distributed to shareholders , Amount to be retained in the firm , To dispatch the dividend warrants in time
Select The Blank*Question -
In today's fast moving world, the quickest way to get information on a firm is through ________.Correct Answer
Internet
Your Answer
Internet
Multiple Choice Multiple Answer*Question -
The main characteristics of operating economies are :-Correct Answer
It is achieved through horizontal, vertical and conglomerate mergers , It occurs due to indivisibilities of resources , It is possible in generic management functions
Your Answer
It is achieved through horizontal, vertical and conglomerate mergers , It occurs due to indivisibilities of resources , It is possible in generic management functions
Multiple Choice Single Answer*Question -
Segment liabilities do not include :-Correct Answer
Borrowings & other liabilities that are incurred for financing rather than operating purpose
Your Answer
Borrowings & other liabilities that are incurred for financing rather than operating purpose
Multiple Choice Single Answer*Question -
Which of the following company is reaping high market valuation due to showing human resources as an asset in its balance sheet information?Correct Answer
Infosys
Your Answer
Infosys
True/False*Question -
In market value approach, interested parties never manipulate the stock markets.Correct Answer
False
Your Answer
False
Multiple Choice Single Answer*Question -
The stock value for a company will be considered to be fair value for ordinary transactions if the shares are :-Correct Answer
Listed
Your Answer
Listed
True/False*Question -
Planning helps an acquiring firm to identify the units it should drop & it should add.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question -
For paying dividends, firms will have a given amount of :-Correct Answer
Cash available
Your Answer
Cash available
Multiple Choice Single Answer*Question -
The depreciation rates or the useful lives of the assets are disclosed only :-Correct Answer
If they are different from the principle rates specified in the statute
Your Answer
If specifically asked by the Chartered accountant of the company
Select The Blank*Question -
Earning power of the company approach tries to value the ________.Correct Answer
Current value of the assets
Your Answer
Current value of the assets
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer*Question -
One of the selective developments that has taken place in recent times is companies are going in for :-Correct Answer
Activity based costing and management
Your Answer
Activity based costing and management
True/False*Question -
Diversification helps in preserving a firm's reputation & goodwill.Correct Answer
True
Your Answer
True
True/False*Question -
Cash dividends are taxable at ordinary tax rates.Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer*Question -
The 3 groups of participants in a firm are :-Correct Answer
Suppliers of equity , Debt suppliers , Firm Managers
Your Answer
Suppliers of equity , Debt suppliers , Firm Managers
Multiple Choice Multiple Answer*Question -
As per AS 13 Statement, the following are not considered as investments:-Correct Answer
Shares , Debentures , Other securities held as stock in trade
Your Answer
Shares , Debentures , Other securities held as stock in trade
Match The Following
Question
Correct Answer
Your Answer
Opportunity cost
An asset value when they are the target of an alternative use.
An asset value when they are the target of an alternative use.
Exit cost
Lost efficiency prior to separation, Job vacancy cost during the new search & termination pay.
Lost efficiency prior to separation, Job vacancy cost during the new search & termination pay.
Historical costs
Sacrifice necessary to hire & train people
Sacrifice necessary to hire & train people
Substitution cost
Exit costs of the leaving employee & recruiting & training of the replacement
Exit costs of the leaving employee & recruiting & training of the replacement
Multiple Choice Multiple Answer*Question -
The acquiring firm for any M & A will require data about the target firm which will include :-Correct Answer
Quality of management , Production capabilities , Profitability
Your Answer
Quality of management , Production capabilities , Profitability
Multiple Choice Single Answer*Question -
Equity includes :-Correct Answer
Development Rebate Reserve
Your Answer
Development Rebate Reserve
Match The Following
Question
Correct Answer
Your Answer
Free cash flow theory
Enormous conflicts of interest between Stakeholders and shareholders
Enormous conflicts of interest between Stakeholders and shareholders
Net income approach
Cost of debt & equity do not change with a change in leverage ratio
Cost of debt & equity do not change with a change in leverage ratio
Net operating income approach
The overall capitalization rate remains constant for all levels of financial leverages
The overall capitalization rate remains constant for all levels of financial leverages
Modigliani - Miller Theory
weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure
weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure
Select The Blank*Question -
If a segment is not designated as a ________ it should be included as an unallocated reconciling item.Correct Answer
Reportable segment
Your Answer
Reportable segment
True/False*Question -
For determining exchange ratio, the model developed by Conn & Nielson is used.Correct Answer
True
Your Answer
True
Select The Blank*Question -
In presenting the reconciliation segment result should be reconciled to ________.Correct Answer
Enterprise net profit or loss
Your Answer
Enterprise net profit or loss
Select The Blank*Question -
Identify disclosure on human resources as a societal concern & prepare international regulations comes under ________Correct Answer
The compulsory method
Your Answer
The compulsory method
Multiple Choice Single Answer*Question -
Which is an example out of the following to which special consideration apply for depreciation :-Correct Answer
Regenerative natural resources
Your Answer
Regenerative natural resources
True/False*Question -
It is essential that ABC must fit into the strategy of the company.Correct Answer
True
Your Answer
True
Select The Blank*Question -
HLL the largest FMCG company has a turnover of Rs. ________.Correct Answer
118 Bn
Your Answer
118 Bn
Select The Blank*Question -
There is a ________ relationship between the number of employees & the use of operating supplies.Correct Answer
Natural
Your Answer
Natural
Multiple Choice Multiple Answer*Question -
The important aspect of dividend policy is :-Correct Answer
To determine the amount of earnings to be distributed to shareholders , Amount to be retained in the firm
Your Answer
To determine the amount of earnings to be distributed to shareholders , Amount to be retained in the firm
Multiple Choice Multiple Answer*Question -
The main characteristics of CAPM are :-Correct Answer
It is an equilibrium Model , It describes the pricing of assets as well as derivatives , Expected security return = Riskless return + beta x (expected market risk premium)
Your Answer
It is an equilibrium Model , It describes the pricing of assets as well as derivatives , Expected security return = Riskless return + beta x (expected market risk premium)
True/False*Question -
Current accounting system is able to provide actual value of employee capabilities & knowledge.Correct Answer
False
Your Answer
False
Multiple Choice Single Answer*Question -
In respect of depreciable assets, which do not have material value, depreciation is often allocated :-Correct Answer
Fully in the accounting period for which they are acquired
Your Answer
Fully in the accounting period for which they are acquired
Multiple Choice Single Answer*Question -
The depreciation rates or the useful lives of the assets are disclosed only :-Correct Answer
If they are different from the principle rates specified in the statute
Your Answer
If they are different from the principle rates specified in the statute
Multiple Choice Multiple Answer*Question -
Due to diversification employees seek:-Correct Answer
Job security , Better opportunities within the firm , Higher compensation
Your Answer
Job security , Better opportunities within the firm , Higher compensation
Select The Blank*Question -
The ________ cost tier has the advantage of being the simplest to calculate and justify.Correct Answer
Direct
Your Answer
Direct
Multiple Choice Multiple Answer*Question -
To gather costs means to do the following actions to support the costing of the activities :-Correct Answer
To capture , To construct , To synthesize the correct cost figures
Your Answer
To capture , To construct , To synthesize the correct cost figures
True/False*Question -
Odd lots purchase is not a method of buy back of shares.Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer*Question -
The overhead expenses include :-Correct Answer
Utilities , Maintenance , Security
Your Answer
Utilities , Maintenance , Security
Multiple Choice Single Answer*Question -
In a matching approach policy, :-Correct Answer
There is a small risk if shortage of funds
Your Answer
There is a small risk if shortage of funds
Multiple Choice Single Answer*Question -
The most important internal sources of financing the growth of the firm is through :-Correct Answer
Retained earnings
Your Answer
Retained earnings
True/False*Question -
The intellectual assets of a company are often worth 3 or 4 times the tangible book value.Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer*Question -
Indicators of the value of an investment are obtained by :-Correct Answer
Reference to its market value , The investee`s assets , The expected cash flows from the investment
Your Answer
Reference to its market value , The investee`s assets , The expected cash flows from the investment
Select The Blank*Question -
Buy back through book building the process should be made through ________.Correct Answer
An electronically linked transparent facility
Your Answer
An electronically linked transparent facility
Multiple Choice Multiple Answer*Question -
Significant influence is the power to :-Correct Answer
Participate in the operating policy decisions , Participate in the financial decisions
Your Answer
Participate in the financial decisions , Participate in the operating policy decisions
True/False*Question -
An activity model is a tool to assist in understanding & defining the organisation.Correct Answer
True
Your Answer
True
True/False*Question -
Decisions related to working capital are repetitive & frequent.Correct Answer
True
Your Answer
True
Select The Blank*Question -
________ is not a characteristic of financial conglomerates.Correct Answer
Provide ineffective competitive process
Your Answer
Provide ineffective competitive process
Multiple Choice Single Answer*Question -
In the past, costing mainly focused on :-Correct Answer
Manufacturing costs
Your Answer
Manufacturing costs
Multiple Choice Multiple Answer*Question -
A firm using a conservative policy for determining the requirements of current assets :-Correct Answer
Has fewer production stoppages , Ensures quick deliveries to customers , Stimulates sales
Your Answer
Has fewer production stoppages , Ensures quick deliveries to customers , Stimulates sales
Multiple Choice Multiple Answer*Question -
The major conditions to be fulfilled for buyback of shares as per the legal provisions include :-Correct Answer
Articles of association should authorize buyback of shares , The shares which are sought to be bought back should be fully paid up , After the buy back the ratio of debt to total capital and free reserves should not be more than 2 : 1
Your Answer
Articles of association should authorize buyback of shares , The shares which are sought to be bought back should be fully paid up , After the buy back the ratio of debt to total capital and free reserves should not be more than 2 : 1
Multiple Choice Single Answer*Question -
Segment liabilities do not include :-Correct Answer
Borrowings & other liabilities that are incurred for financing rather than operating purpose
Your Answer
Borrowings & other liabilities that are incurred for financing rather than operating purpose
Multiple Choice Single Answer*Question -
The difference between current assets & current liabilities is known as :-Correct Answer
Net working capital
Your Answer
Net working capital
Multiple Choice Single Answer*Question -
The bottom line of ABC Process is :-Correct Answer
To achieve a better method of doing the right business pf the organisation
Your Answer
To achieve a better method of doing the right business pf the organisation
Select The Blank*Question -
Non value added activities helps ________.Correct Answer
To analyse the activities more carefully
Your Answer
To analyse the activities more carefully
Multiple Choice Single Answer*Question -
In value of assets method the following is also to be included as they are also of value to the company :-Correct Answer
Non trading assets
Your Answer
Non trading assets
Multiple Choice Single Answer*Question -
Best practices, a tool for review process is similar to :-Correct Answer
Bench marking
Your Answer
Bench marking
Select The Blank*Question -
HLL is ________ % of subsidiary of Unilever PLC.Correct Answer
0.516
Your Answer
0.516
Select The Blank*Question -
traditionally avails are provided by ________.Correct Answer
Banks
Your Answer
Banks
Multiple Choice Single Answer*Question -
One of the selective developments that has taken place in recent times is companies are going in for :-Correct Answer
Activity based costing and management
Your Answer
Activity based costing and management
True/False*Question -
Diversification helps in preserving a firm's reputation & goodwill.Correct Answer
True
Your Answer
True
True/False*Question -
Cash dividends are taxable at ordinary tax rates.Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer*Question -
The 3 groups of participants in a firm are :-Correct Answer
Suppliers of equity , Debt suppliers , Firm Managers
Your Answer
Suppliers of equity , Debt suppliers , Firm Managers
Multiple Choice Multiple Answer*Question -
As per AS 13 Statement, the following are not considered as investments:-Correct Answer
Shares , Debentures , Other securities held as stock in trade
Your Answer
Shares , Debentures , Other securities held as stock in trade
Match The Following
Question
Correct Answer
Your Answer
Opportunity cost
An asset value when they are the target of an alternative use.
An asset value when they are the target of an alternative use.
Exit cost
Lost efficiency prior to separation, Job vacancy cost during the new search & termination pay.
Lost efficiency prior to separation, Job vacancy cost during the new search & termination pay.
Historical costs
Sacrifice necessary to hire & train people
Sacrifice necessary to hire & train people
Substitution cost
Exit costs of the leaving employee & recruiting & training of the replacement
Exit costs of the leaving employee & recruiting & training of the replacement
Multiple Choice Multiple Answer*Question -
The acquiring firm for any M & A will require data about the target firm which will include :-Correct Answer
Quality of management , Production capabilities , Profitability
Your Answer
Quality of management , Production capabilities , Profitability
Multiple Choice Single Answer*Question -
Equity includes :-Correct Answer
Development Rebate Reserve
Your Answer
Development Rebate Reserve
Match The Following
Question
Correct Answer
Your Answer
Free cash flow theory
Enormous conflicts of interest between Stakeholders and shareholders
Enormous conflicts of interest between Stakeholders and shareholders
Net income approach
Cost of debt & equity do not change with a change in leverage ratio
Cost of debt & equity do not change with a change in leverage ratio
Net operating income approach
The overall capitalization rate remains constant for all levels of financial leverages
The overall capitalization rate remains constant for all levels of financial leverages
Modigliani - Miller Theory
weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure
weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure
Select The Blank*Question -
If a segment is not designated as a ________ it should be included as an unallocated reconciling item.Correct Answer
Reportable segment
Your Answer
Reportable segment
True/False*Question -
For determining exchange ratio, the model developed by Conn & Nielson is used.Correct Answer
True
Your Answer
True
Select The Blank*Question -
In presenting the reconciliation segment result should be reconciled to ________.Correct Answer
Enterprise net profit or loss
Your Answer
Enterprise net profit or loss
Select The Blank*Question -
Identify disclosure on human resources as a societal concern & prepare international regulations comes under ________Correct Answer
The compulsory method
Your Answer
The compulsory method
Multiple Choice Single Answer*Question -
Which is an example out of the following to which special consideration apply for depreciation :-Correct Answer
Regenerative natural resources
Your Answer
Regenerative natural resources
True/False*Question -
It is essential that ABC must fit into the strategy of the company.Correct Answer
True
Your Answer
True
Select The Blank*Question -
HLL the largest FMCG company has a turnover of Rs. ________.Correct Answer
118 Bn
Your Answer
118 Bn
Select The Blank*Question -
There is a ________ relationship between the number of employees & the use of operating supplies.Correct Answer
Natural
Your Answer
Natural
Multiple Choice Multiple Answer*Question -
The important aspect of dividend policy is :-Correct Answer
To determine the amount of earnings to be distributed to shareholders , Amount to be retained in the firm
Your Answer
To determine the amount of earnings to be distributed to shareholders , Amount to be retained in the firm
Multiple Choice Multiple Answer*Question -
The main characteristics of CAPM are :-Correct Answer
It is an equilibrium Model , It describes the pricing of assets as well as derivatives , Expected security return = Riskless return + beta x (expected market risk premium)
Your Answer
It is an equilibrium Model , It describes the pricing of assets as well as derivatives , Expected security return = Riskless return + beta x (expected market risk premium)
True/False*Question -
Current accounting system is able to provide actual value of employee capabilities & knowledge.Correct Answer
False
Your Answer
False
Multiple Choice Single Answer*Question -
In respect of depreciable assets, which do not have material value, depreciation is often allocated :-Correct Answer
Fully in the accounting period for which they are acquired
Your Answer
Fully in the accounting period for which they are acquired
Multiple Choice Single Answer*Question -
The depreciation rates or the useful lives of the assets are disclosed only :-Correct Answer
If they are different from the principle rates specified in the statute
Your Answer
If they are different from the principle rates specified in the statute
Multiple Choice Multiple Answer*Question -
Due to diversification employees seek:-Correct Answer
Job security , Better opportunities within the firm , Higher compensation
Your Answer
Job security , Better opportunities within the firm , Higher compensation
Select The Blank*Question -
The ________ cost tier has the advantage of being the simplest to calculate and justify.Correct Answer
Direct
Your Answer
Direct
Multiple Choice Multiple Answer*Question -
To gather costs means to do the following actions to support the costing of the activities :-Correct Answer
To capture , To construct , To synthesize the correct cost figures
Your Answer
To capture , To construct , To synthesize the correct cost figures
True/False*Question -
Odd lots purchase is not a method of buy back of shares.Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer*Question -
The overhead expenses include :-Correct Answer
Utilities , Maintenance , Security
Your Answer
Utilities , Maintenance , Security
Multiple Choice Single Answer*Question -
In a matching approach policy, :-Correct Answer
There is a small risk if shortage of funds
Your Answer
There is a small risk if shortage of funds
Multiple Choice Single Answer*Question -
The most important internal sources of financing the growth of the firm is through :-Correct Answer
Retained earnings
Your Answer
Retained earnings
True/False*Question -
The intellectual assets of a company are often worth 3 or 4 times the tangible book value.Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer*Question -
Indicators of the value of an investment are obtained by :-Correct Answer
Reference to its market value , The investee`s assets , The expected cash flows from the investment
Your Answer
Reference to its market value , The investee`s assets , The expected cash flows from the investment
Select The Blank*Question -
Buy back through book building the process should be made through ________.Correct Answer
An electronically linked transparent facility
Your Answer
An electronically linked transparent facility
Multiple Choice Multiple Answer*Question -
Significant influence is the power to :-Correct Answer
Participate in the operating policy decisions , Participate in the financial decisions
Your Answer
Participate in the financial decisions , Participate in the operating policy decisions
True/False*Question -
An activity model is a tool to assist in understanding & defining the organisation.Correct Answer
True
Your Answer
True
True/False*Question -
Decisions related to working capital are repetitive & frequent.Correct Answer
True
Your Answer
True
Select The Blank*Question -
________ is not a characteristic of financial conglomerates.Correct Answer
Provide ineffective competitive process
Your Answer
Provide ineffective competitive process
Multiple Choice Single Answer*Question -
In the past, costing mainly focused on :-Correct Answer
Manufacturing costs
Your Answer
Manufacturing costs
Multiple Choice Multiple Answer*Question -
A firm using a conservative policy for determining the requirements of current assets :-Correct Answer
Has fewer production stoppages , Ensures quick deliveries to customers , Stimulates sales
Your Answer
Has fewer production stoppages , Ensures quick deliveries to customers , Stimulates sales
Multiple Choice Multiple Answer*Question -
The major conditions to be fulfilled for buyback of shares as per the legal provisions include :-Correct Answer
Articles of association should authorize buyback of shares , The shares which are sought to be bought back should be fully paid up , After the buy back the ratio of debt to total capital and free reserves should not be more than 2 : 1
Your Answer
Articles of association should authorize buyback of shares , The shares which are sought to be bought back should be fully paid up , After the buy back the ratio of debt to total capital and free reserves should not be more than 2 : 1
Multiple Choice Single Answer*Question -
Segment liabilities do not include :-Correct Answer
Borrowings & other liabilities that are incurred for financing rather than operating purpose
Your Answer
Borrowings & other liabilities that are incurred for financing rather than operating purpose
Multiple Choice Single Answer*Question -
The difference between current assets & current liabilities is known as :-Correct Answer
Net working capital
Your Answer
Net working capital
Multiple Choice Single Answer*Question -
The bottom line of ABC Process is :-Correct Answer
To achieve a better method of doing the right business pf the organisation
Your Answer
To achieve a better method of doing the right business pf the organisation
Select The Blank*Question -
Non value added activities helps ________.Correct Answer
To analyse the activities more carefully
Your Answer
To analyse the activities more carefully
Multiple Choice Single Answer*Question -
In value of assets method the following is also to be included as they are also of value to the company :-Correct Answer
Non trading assets
Your Answer
Non trading assets
Multiple Choice Single Answer*Question -
Best practices, a tool for review process is similar to :-Correct Answer
Bench marking
Your Answer
Bench marking
Select The Blank*Question -
HLL is ________ % of subsidiary of Unilever PLC.Correct Answer
0.516
Your Answer
0.516
Select The Blank*Question -
traditionally avails are provided by ________.Correct Answer
Banks
Your Answer
Banks
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