LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer*Question -
The financial framework of a merger decision covers 3 interrelated aspects i.e. :-Correct Answer
Financing techniques in mergers , Analysis of merger as a capital budgeting decision , Determining the firm's value
Your Answer
Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision
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
Seven
True/False*Question -
Management of working capital refers to the management of total assets and liabilities of a company.Correct Answer
False
Your Answer
False
True/False*Question -
optimum cash balance under certainty i.e. Baumul`s model allows the cash flow to fluctuate.Correct Answer
False
Your Answer
False
True/False*Question -
Appraisal value of a firm can be acquired from an independent appraisal agency.Correct Answer
True
Your Answer
True
True/False*Question -
Accounting standards (AS - 13) is now mandatory.Correct Answer
True
Your Answer
True
True/False*Question -
The accounting records serve as the major source of cost data.Correct Answer
True
Your Answer
True
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 find the cost of existing organisational structure
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
Solid human resource team
Select The Blank*Question -
In many companies, there is no formal record of________.Correct Answer
Investment in employees
Your Answer
Investment in employees
True/False*Question -
The activity model is normally created by an activity Accountant.Correct Answer
False
Your Answer
False
True/False*Question -
The chance of bankruptcy is small when the leverage of a firm is small.Correct Answer
True
Your Answer
True
Select The Blank*Question -
The total cost of the activity model allocated by the applied activity drivers to the output of the activity model is called________.Correct Answer
The cost of the output
Your Answer
The cost of the output
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 budgetary records are useful for:-Correct Answer
Validating accounting costs , Providing a rationale for division of costs , Replacing missing data
Your Answer
Validating accounting costs , Providing a rationale for division of costs , Replacing missing data
Multiple Choice Single Answer*Question -
When a company has resorted to buyback of its shares it cannot make a further issue of the same kind of securities within a period of how many months?Correct Answer
6 months
Your Answer
6 months
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 -
The most popular kind of dividend policy is one that pays a ________.Correct Answer
Regular, steady dividend
Your Answer
Regular, steady dividend
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
Match The Following
Question
Correct Answer
Your Answer
Amount involved in buy back
Not to exceed 25 % of the total paid up capital
Not to exceed 25 % of the total paid up capital
Articles of Association
Authorize buy back of securities
Authorize buy back of securities
Board of Directors
Resolution permitting the buy back of shares
Resolution permitting the buy back of shares
Shares to be bought back
Fully paid up
Fully paid up
Multiple Choice Single Answer*Question -
A high payout policy means :-Correct Answer
More current dividends
Your Answer
More current dividends
Match The Following
Question
Correct Answer
Your Answer
Earning per share
Acquisition is considered to be a function of the impact of the merger on the EPS
Acquisition is considered to be a function of the impact of the merger on the EPS
Book value
Divide net worth by the number of equity shares outstanding
Divide net worth by the number of equity shares outstanding
Appraisal value
Provides a list of the reasonableness of results obtained through methods base upon the going concern concept
Provides a list of the reasonableness of results obtained through methods base upon the going concern concept
Market value
Indicate the consensus of the investors
Indicate the consensus of the investors
Select The Blank*Question -
In the reproduction value method of valuation, the value of assets is taken to be on the basis of ________Correct Answer
Replacement cost
Your Answer
Replacement cost
Select The Blank*Question -
The advantage of ________ is that the company is not required to wait for the payment by the bill issuer.Correct Answer
Bill discounting
Your Answer
Bill discounting
Multiple Choice Single Answer*Question -
In a growth firm, internal rate is :-Correct Answer
More than opportunity
Your Answer
equals opportunity
Multiple Choice Multiple Answer*Question -
Shortage costs are mainly in the form of :-Correct Answer
Disruption in production schedule , Loss of sales , Loss of customer goodwill
Your Answer
Disruption in production schedule , Loss of sales , Loss of customer goodwill
Multiple Choice Multiple Answer*Question -
Shortcomings of accounting numbers consist of the following :-Correct Answer
Firms use different kind of accounting methods , Business risk and financial risk do not have any influence on accounting numbers
Your Answer
Firms use different kind of accounting methods , Business risk and financial risk do not have any influence on accounting numbers
Multiple Choice Single Answer*Question -
Internal financing means the firm finances all investments through :-Correct Answer
Retained earnings
Your Answer
Retained earnings
Multiple Choice Single Answer*Question -
The earning power of the company approach includes :-Correct Answer
Mainly discounting of all future earnings
Your Answer
Mainly discounting of all future earnings
Multiple Choice Single Answer*Question -
A firm should consider acquisition as a :-Correct Answer
Capital budget decision
Your Answer
Capital budget decision
Multiple Choice Single Answer*Question -
Firms which have marked seasonality in their operations usually have :-Correct Answer
Highly fluctuating working capital requirement
Your Answer
Highly fluctuating working capital requirement
Multiple Choice Single Answer*Question -
Decrease in leverage results in increasing the :-Correct Answer
Overall cost of capital
Your Answer
Overall cost of capital
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 Single Answer*Question -
the amount of working capital required to meet long term, minimum needs is called :-Correct Answer
Permanent working capital
Your Answer
Permanent working capital
Select The Blank*Question -
The costs should be gathered & allocated within the organisation at the ________ structural layer.Correct Answer
Lowest possible
Your Answer
Lowest possible
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 -
Segment assets are determined after :-Correct Answer
Deducting related allowances / provisions reported as direct offsets
Your Answer
Deducting related allowances / provisions reported as direct offsets
Multiple Choice Multiple Answer*Question -
For M & As, the acquiring firm needs industry data on :-Correct Answer
Market growth , Nature of competition , Degree of regulation
Your Answer
Market growth , Nature of competition , Degree of regulation
Select The Blank*Question -
Implicit & Explicit costs are included in the ________.Correct Answer
Price of a product
Your Answer
Price of a product
Multiple Choice Multiple Answer*Question -
In a merger decision, the value of a firm depends upon:-Correct Answer
Earnings , Operating characteristics of acquiring firm , Financial characteristics of acquiring firm
Your Answer
Earnings , Operating characteristics of acquiring firm , Financial characteristics of acquiring firm
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
True/False*Question -
Segment result is segment revenue less segment expenses.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question -
The main factor affecting the profits is :-Correct Answer
The magnitude of sales of the business
Your Answer
Customer reputation in the market
True/False*Question -
Retained earnings are the most important internal sources of financing the growth of the firm.Correct Answer
True
Your Answer
True
Select The Blank*Question -
________ are those operating assets that are employed by a segment in its operating activities.Correct Answer
Segment assets
Your Answer
Segment assets
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 Multiple Answer*Question -
Accounting numbers are not influenced by :-Correct Answer
Dividend policy , Time span of money , Financial and business risk
Your Answer
Dividend policy , Time span of money , Financial and business risk
Multiple Choice Multiple Answer*Question -
The financial framework of a merger decision covers 3 interrelated aspects i.e. :-Correct Answer
Financing techniques in mergers , Analysis of merger as a capital budgeting decision , Determining the firm's value
Your Answer
Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision
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
Seven
True/False*Question -
Management of working capital refers to the management of total assets and liabilities of a company.Correct Answer
False
Your Answer
False
True/False*Question -
optimum cash balance under certainty i.e. Baumul`s model allows the cash flow to fluctuate.Correct Answer
False
Your Answer
False
True/False*Question -
Appraisal value of a firm can be acquired from an independent appraisal agency.Correct Answer
True
Your Answer
True
True/False*Question -
Accounting standards (AS - 13) is now mandatory.Correct Answer
True
Your Answer
True
True/False*Question -
The accounting records serve as the major source of cost data.Correct Answer
True
Your Answer
True
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 find the cost of existing organisational structure
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
Solid human resource team
Select The Blank*Question -
In many companies, there is no formal record of________.Correct Answer
Investment in employees
Your Answer
Investment in employees
True/False*Question -
The activity model is normally created by an activity Accountant.Correct Answer
False
Your Answer
False
True/False*Question -
The chance of bankruptcy is small when the leverage of a firm is small.Correct Answer
True
Your Answer
True
Select The Blank*Question -
The total cost of the activity model allocated by the applied activity drivers to the output of the activity model is called________.Correct Answer
The cost of the output
Your Answer
The cost of the output
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 budgetary records are useful for:-Correct Answer
Validating accounting costs , Providing a rationale for division of costs , Replacing missing data
Your Answer
Validating accounting costs , Providing a rationale for division of costs , Replacing missing data
Multiple Choice Single Answer*Question -
When a company has resorted to buyback of its shares it cannot make a further issue of the same kind of securities within a period of how many months?Correct Answer
6 months
Your Answer
6 months
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 -
The most popular kind of dividend policy is one that pays a ________.Correct Answer
Regular, steady dividend
Your Answer
Regular, steady dividend
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
Match The Following
Question
Correct Answer
Your Answer
Amount involved in buy back
Not to exceed 25 % of the total paid up capital
Not to exceed 25 % of the total paid up capital
Articles of Association
Authorize buy back of securities
Authorize buy back of securities
Board of Directors
Resolution permitting the buy back of shares
Resolution permitting the buy back of shares
Shares to be bought back
Fully paid up
Fully paid up
Multiple Choice Single Answer*Question -
A high payout policy means :-Correct Answer
More current dividends
Your Answer
More current dividends
Match The Following
Question
Correct Answer
Your Answer
Earning per share
Acquisition is considered to be a function of the impact of the merger on the EPS
Acquisition is considered to be a function of the impact of the merger on the EPS
Book value
Divide net worth by the number of equity shares outstanding
Divide net worth by the number of equity shares outstanding
Appraisal value
Provides a list of the reasonableness of results obtained through methods base upon the going concern concept
Provides a list of the reasonableness of results obtained through methods base upon the going concern concept
Market value
Indicate the consensus of the investors
Indicate the consensus of the investors
Select The Blank*Question -
In the reproduction value method of valuation, the value of assets is taken to be on the basis of ________Correct Answer
Replacement cost
Your Answer
Replacement cost
Select The Blank*Question -
The advantage of ________ is that the company is not required to wait for the payment by the bill issuer.Correct Answer
Bill discounting
Your Answer
Bill discounting
Multiple Choice Single Answer*Question -
In a growth firm, internal rate is :-Correct Answer
More than opportunity
Your Answer
equals opportunity
Multiple Choice Multiple Answer*Question -
Shortage costs are mainly in the form of :-Correct Answer
Disruption in production schedule , Loss of sales , Loss of customer goodwill
Your Answer
Disruption in production schedule , Loss of sales , Loss of customer goodwill
Multiple Choice Multiple Answer*Question -
Shortcomings of accounting numbers consist of the following :-Correct Answer
Firms use different kind of accounting methods , Business risk and financial risk do not have any influence on accounting numbers
Your Answer
Firms use different kind of accounting methods , Business risk and financial risk do not have any influence on accounting numbers
Multiple Choice Single Answer*Question -
Internal financing means the firm finances all investments through :-Correct Answer
Retained earnings
Your Answer
Retained earnings
Multiple Choice Single Answer*Question -
The earning power of the company approach includes :-Correct Answer
Mainly discounting of all future earnings
Your Answer
Mainly discounting of all future earnings
Multiple Choice Single Answer*Question -
A firm should consider acquisition as a :-Correct Answer
Capital budget decision
Your Answer
Capital budget decision
Multiple Choice Single Answer*Question -
Firms which have marked seasonality in their operations usually have :-Correct Answer
Highly fluctuating working capital requirement
Your Answer
Highly fluctuating working capital requirement
Multiple Choice Single Answer*Question -
Decrease in leverage results in increasing the :-Correct Answer
Overall cost of capital
Your Answer
Overall cost of capital
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 Single Answer*Question -
the amount of working capital required to meet long term, minimum needs is called :-Correct Answer
Permanent working capital
Your Answer
Permanent working capital
Select The Blank*Question -
The costs should be gathered & allocated within the organisation at the ________ structural layer.Correct Answer
Lowest possible
Your Answer
Lowest possible
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 -
Segment assets are determined after :-Correct Answer
Deducting related allowances / provisions reported as direct offsets
Your Answer
Deducting related allowances / provisions reported as direct offsets
Multiple Choice Multiple Answer*Question -
For M & As, the acquiring firm needs industry data on :-Correct Answer
Market growth , Nature of competition , Degree of regulation
Your Answer
Market growth , Nature of competition , Degree of regulation
Select The Blank*Question -
Implicit & Explicit costs are included in the ________.Correct Answer
Price of a product
Your Answer
Price of a product
Multiple Choice Multiple Answer*Question -
In a merger decision, the value of a firm depends upon:-Correct Answer
Earnings , Operating characteristics of acquiring firm , Financial characteristics of acquiring firm
Your Answer
Earnings , Operating characteristics of acquiring firm , Financial characteristics of acquiring firm
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
True/False*Question -
Segment result is segment revenue less segment expenses.Correct Answer
True
Your Answer
True
Multiple Choice Single Answer*Question -
The main factor affecting the profits is :-Correct Answer
The magnitude of sales of the business
Your Answer
Customer reputation in the market
True/False*Question -
Retained earnings are the most important internal sources of financing the growth of the firm.Correct Answer
True
Your Answer
True
Select The Blank*Question -
________ are those operating assets that are employed by a segment in its operating activities.Correct Answer
Segment assets
Your Answer
Segment assets
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 Multiple Answer*Question -
Accounting numbers are not influenced by :-Correct Answer
Dividend policy , Time span of money , Financial and business risk
Your Answer
Dividend policy , Time span of money , Financial and business risk
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank*Question -
Total risk reduces if operations of combining firms are ________.Correct Answer
Negatively correlated
Your Answer
Negatively correlated
Multiple Choice Single Answer*Question -
The Public announcement of share buy back has to be made at least :-Correct Answer
7 Days prior to the commencement of buy back
Your Answer
7 Days prior to the commencement of buy back
Multiple Choice Multiple Answer*Question -
It is the activity accountant's job to do the following for the existing organisational structure :-Correct Answer
To define the costs , To refine the costs , To document the costs
Your Answer
To define the costs , To refine the costs , To document the costs
Multiple Choice Multiple Answer*Question -
Operating economies occur due to indivisibilities of resources like :-Correct Answer
People , Equipment , Overheads
Your Answer
People , Equipment , Overheads
Select The Blank*Question -
The amount to be invested by any single investor in a commercial paper shall not be less than Rs. ________.Correct Answer
25 lacs
Your Answer
25 lacs
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
Multiple Choice Single Answer*Question -
The development aspect of training in firms focus on :-Correct Answer
Promotion to higher job levels
Your Answer
Promotion to higher job levels
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
Multiple Choice Single Answer*Question -
AS 17 is mandatory for all commercial, industrial & business reporting enterprises whose turnover for the accounting period :-Correct Answer
Exceeds 50 crores
Your Answer
Exceeds 50 crores
Select The Blank*Question -
If the segment result of a segment includes interest or dividend income its segment assets will not include ________.Correct Answer
Payables
Your Answer
Payables
Select The Blank*Question -
Economies of scale arises with increase in volume of production leading to________.Correct Answer
Reduction in the cost of production
Your Answer
Reduction in the cost of production
Multiple Choice Single Answer*Question -
When a change in the method of depreciation is made :-Correct Answer
Depreciation is recalculated in accordance with the new method
Your Answer
Depreciation is recalculated in accordance with the new method
Multiple Choice Multiple Answer*Question -
One of the advantages of trade credit is its flexibility i.e. the firm does not :-Correct Answer
Have to sign a note , Pledge collateral , Adhere to strict payment schedule
Your Answer
Have to sign a note , Pledge collateral , Adhere to strict payment schedule
Select The Blank*Question -
Depreciation is ________ of an asset.Correct Answer
Loss of value
Your Answer
Loss of value
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
Multiple Choice Single Answer*Question -
When the seller asks for the payment before making the delivery in order to avoid all risks it is known as :-Correct Answer
Cash before delivery
Your Answer
Cash before delivery
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 -
It is possible to place a single value for the acquired firm.Correct Answer
False
Your Answer
False
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 , Realisability of investments , The remittance of income & proceeds of disposal
Multiple Choice Single Answer*Question -
The depreciable assets are assets which are expected to be used :-Correct Answer
During more than 1 accounting period
Your Answer
During more than 1 accounting period
True/False*Question -
Short term financing is meant for funding working capital of a company.Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer*Question -
The existence of significant influence by an investor is usually evidenced in the following ways :-Correct Answer
Participation in policy making processes , Material transactions between the investor & the investee , Interchange of managerial personnel
Your Answer
Participation in policy making processes , Material transactions between the investor & the investee , Interchange of managerial personnel
Multiple Choice Multiple Answer*Question -
The important steps involved in the analysis of mergers & acquisitions are:-Correct Answer
Planning , Searching & screening , Financial evaluation
Your Answer
Planning , Searching & screening , Financial evaluation
Match The Following
Question
Correct Answer
Your Answer
Unsecured loans
Form of debt not backed by the pledge of specific assets
Form of debt not backed by the pledge of specific assets
Line of credit
Does not constitute any legal commitments on the part of the bank
Does not constitute any legal commitments on the part of the bank
Revolving credit agreements
While the commitment is in force the bank must extend credit whenever the borrower wishes to borrow
While the commitment is in force the bank must extend credit whenever the borrower wishes to borrow
Transaction loan
The cash flow ability of the borrower to pay the loan is usually of paramount importance
The cash flow ability of the borrower to pay the loan is usually of paramount importance
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
True/False*Question -
Dividends increase the current returns for shareholders.Correct Answer
True
Your Answer
True
True/False*Question -
Book value is based on the balance sheet value of owner's equity.Correct Answer
True
Your Answer
True
Select The Blank*Question -
the commercial paper may be issued in the multiples of ________.Correct Answer
5 lakhs
Your Answer
5 lakhs
Select The Blank*Question -
In presenting the reconciliation segment result should be reconciled to ________.Correct Answer
Enterprise net profit or loss
Your Answer
Enterprise revenue
Select The Blank*Question -
Another meaning of bear hug is ________.Correct Answer
Hostile takeover
Your Answer
Friendly takeover
Multiple Choice Single Answer*Question -
Funds borrowed for a period of 1 year or less is called :-Correct Answer
Short term finance
Your Answer
Short term finance
Multiple Choice Multiple Answer*Question -
Financial statements classify the following into separate categories :-Correct Answer
Fixed assets , Investments , Current assets
Your Answer
Fixed assets , Investments , Current assets
Multiple Choice Single Answer*Question -
Any addition or extension to an existing asset which retains a separate identify & is capable of being used after the existing asset is disposed of :-Correct Answer
Is depreciated independently
Your Answer
Is depreciated independently
Multiple Choice Single Answer*Question -
In value of assets approach the value of which of the following should be deducted to calculate the net assets available to the equity shareholders :-Correct Answer
Outstanding preference shares
Your Answer
Outstanding preference shares
Multiple Choice Single Answer*Question -
What is a very important factor in any kind of merger?Correct Answer
Exchange ratio
Your Answer
Exchange ratio
Multiple Choice Single Answer*Question -
When the working capital is less than its peak level :-Correct Answer
The surplus is invested in liquid assets
Your Answer
The surplus is invested in liquid assets
True/False*Question -
Baumul`s Model is similar to EOQ model in inventory management.Correct Answer
True
Your Answer
True
True/False*Question -
Sometimes the mechanisms may appear to be inputs for an activity.Correct Answer
True
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
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
Match The Following
Question
Correct Answer
Your Answer
Terminal warehouse receipt
Inventory is stored with a public or terminal warehousing company
Inventory is stored with a public or terminal warehousing company
Floating lien
Loose arrangement as the lender may find it difficult to police
Loose arrangement as the lender may find it difficult to police
Chattel mortgage
Well suited for financial good inventories of capital goods
Well suited for financial good inventories of capital goods
Trust receipt
Specifically identified by serial number or other means
Specifically identified by serial number or other means
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 Multiple Answer*Question -
If a company is following multiple accounting system, the activity accountant will have to match data across :-Correct Answer
Codes , Time periods , Systems
Your Answer
Codes , Time periods , Systems
True/False*Question -
AS 13 statement does not deal with operating or finance leases.Correct Answer
True
Your Answer
True
Select The Blank*Question -
The number of bidding centers shall not be less than ________ for buy back through book building.Correct Answer
30
Your Answer
30
Select The Blank*Question -
Market approach is used for companies whose shares are ________ on the Stock market.Correct Answer
Listed
Your Answer
Listed
Select The Blank*Question -
Total risk reduces if operations of combining firms are ________.Correct Answer
Negatively correlated
Your Answer
Negatively correlated
Multiple Choice Single Answer*Question -
The Public announcement of share buy back has to be made at least :-Correct Answer
7 Days prior to the commencement of buy back
Your Answer
7 Days prior to the commencement of buy back
Multiple Choice Multiple Answer*Question -
It is the activity accountant's job to do the following for the existing organisational structure :-Correct Answer
To define the costs , To refine the costs , To document the costs
Your Answer
To define the costs , To refine the costs , To document the costs
Multiple Choice Multiple Answer*Question -
Operating economies occur due to indivisibilities of resources like :-Correct Answer
People , Equipment , Overheads
Your Answer
People , Equipment , Overheads
Select The Blank*Question -
The amount to be invested by any single investor in a commercial paper shall not be less than Rs. ________.Correct Answer
25 lacs
Your Answer
25 lacs
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
Multiple Choice Single Answer*Question -
The development aspect of training in firms focus on :-Correct Answer
Promotion to higher job levels
Your Answer
Promotion to higher job levels
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
Multiple Choice Single Answer*Question -
AS 17 is mandatory for all commercial, industrial & business reporting enterprises whose turnover for the accounting period :-Correct Answer
Exceeds 50 crores
Your Answer
Exceeds 50 crores
Select The Blank*Question -
If the segment result of a segment includes interest or dividend income its segment assets will not include ________.Correct Answer
Payables
Your Answer
Payables
Select The Blank*Question -
Economies of scale arises with increase in volume of production leading to________.Correct Answer
Reduction in the cost of production
Your Answer
Reduction in the cost of production
Multiple Choice Single Answer*Question -
When a change in the method of depreciation is made :-Correct Answer
Depreciation is recalculated in accordance with the new method
Your Answer
Depreciation is recalculated in accordance with the new method
Multiple Choice Multiple Answer*Question -
One of the advantages of trade credit is its flexibility i.e. the firm does not :-Correct Answer
Have to sign a note , Pledge collateral , Adhere to strict payment schedule
Your Answer
Have to sign a note , Pledge collateral , Adhere to strict payment schedule
Select The Blank*Question -
Depreciation is ________ of an asset.Correct Answer
Loss of value
Your Answer
Loss of value
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
Multiple Choice Single Answer*Question -
When the seller asks for the payment before making the delivery in order to avoid all risks it is known as :-Correct Answer
Cash before delivery
Your Answer
Cash before delivery
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 -
It is possible to place a single value for the acquired firm.Correct Answer
False
Your Answer
False
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 , Realisability of investments , The remittance of income & proceeds of disposal
Multiple Choice Single Answer*Question -
The depreciable assets are assets which are expected to be used :-Correct Answer
During more than 1 accounting period
Your Answer
During more than 1 accounting period
True/False*Question -
Short term financing is meant for funding working capital of a company.Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer*Question -
The existence of significant influence by an investor is usually evidenced in the following ways :-Correct Answer
Participation in policy making processes , Material transactions between the investor & the investee , Interchange of managerial personnel
Your Answer
Participation in policy making processes , Material transactions between the investor & the investee , Interchange of managerial personnel
Multiple Choice Multiple Answer*Question -
The important steps involved in the analysis of mergers & acquisitions are:-Correct Answer
Planning , Searching & screening , Financial evaluation
Your Answer
Planning , Searching & screening , Financial evaluation
Match The Following
Question
Correct Answer
Your Answer
Unsecured loans
Form of debt not backed by the pledge of specific assets
Form of debt not backed by the pledge of specific assets
Line of credit
Does not constitute any legal commitments on the part of the bank
Does not constitute any legal commitments on the part of the bank
Revolving credit agreements
While the commitment is in force the bank must extend credit whenever the borrower wishes to borrow
While the commitment is in force the bank must extend credit whenever the borrower wishes to borrow
Transaction loan
The cash flow ability of the borrower to pay the loan is usually of paramount importance
The cash flow ability of the borrower to pay the loan is usually of paramount importance
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
True/False*Question -
Dividends increase the current returns for shareholders.Correct Answer
True
Your Answer
True
True/False*Question -
Book value is based on the balance sheet value of owner's equity.Correct Answer
True
Your Answer
True
Select The Blank*Question -
the commercial paper may be issued in the multiples of ________.Correct Answer
5 lakhs
Your Answer
5 lakhs
Select The Blank*Question -
In presenting the reconciliation segment result should be reconciled to ________.Correct Answer
Enterprise net profit or loss
Your Answer
Enterprise revenue
Select The Blank*Question -
Another meaning of bear hug is ________.Correct Answer
Hostile takeover
Your Answer
Friendly takeover
Multiple Choice Single Answer*Question -
Funds borrowed for a period of 1 year or less is called :-Correct Answer
Short term finance
Your Answer
Short term finance
Multiple Choice Multiple Answer*Question -
Financial statements classify the following into separate categories :-Correct Answer
Fixed assets , Investments , Current assets
Your Answer
Fixed assets , Investments , Current assets
Multiple Choice Single Answer*Question -
Any addition or extension to an existing asset which retains a separate identify & is capable of being used after the existing asset is disposed of :-Correct Answer
Is depreciated independently
Your Answer
Is depreciated independently
Multiple Choice Single Answer*Question -
In value of assets approach the value of which of the following should be deducted to calculate the net assets available to the equity shareholders :-Correct Answer
Outstanding preference shares
Your Answer
Outstanding preference shares
Multiple Choice Single Answer*Question -
What is a very important factor in any kind of merger?Correct Answer
Exchange ratio
Your Answer
Exchange ratio
Multiple Choice Single Answer*Question -
When the working capital is less than its peak level :-Correct Answer
The surplus is invested in liquid assets
Your Answer
The surplus is invested in liquid assets
True/False*Question -
Baumul`s Model is similar to EOQ model in inventory management.Correct Answer
True
Your Answer
True
True/False*Question -
Sometimes the mechanisms may appear to be inputs for an activity.Correct Answer
True
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
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
Match The Following
Question
Correct Answer
Your Answer
Terminal warehouse receipt
Inventory is stored with a public or terminal warehousing company
Inventory is stored with a public or terminal warehousing company
Floating lien
Loose arrangement as the lender may find it difficult to police
Loose arrangement as the lender may find it difficult to police
Chattel mortgage
Well suited for financial good inventories of capital goods
Well suited for financial good inventories of capital goods
Trust receipt
Specifically identified by serial number or other means
Specifically identified by serial number or other means
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 Multiple Answer*Question -
If a company is following multiple accounting system, the activity accountant will have to match data across :-Correct Answer
Codes , Time periods , Systems
Your Answer
Codes , Time periods , Systems
True/False*Question -
AS 13 statement does not deal with operating or finance leases.Correct Answer
True
Your Answer
True
Select The Blank*Question -
The number of bidding centers shall not be less than ________ for buy back through book building.Correct Answer
30
Your Answer
30
Select The Blank*Question -
Market approach is used for companies whose shares are ________ on the Stock market.Correct Answer
Listed
Your Answer
Listed
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