IC89 - Management Accounting - 1

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Q 1. Which of the following is an example of Systematic risk?

a) Business risk

b) Financial risk

c) Interest Rate Risk

d) Default risk

Q 2. What are all the major functions of financial management?

a) Accounting functions

b) Control functions

c) Treasury management functions

d) All of the above

Q 3. Which of the following is an example of the application of working capital?

a) Dividend paid to shareholders

b) Funds from business operation

c) Long-term borrowing

d) Sale of non-current assets

Q 4. As per Directives for Investment in Alternative Investment Funds for insurers, what is the permissible limit of exposure to a single AIF or venture fund for insurers?

a) Not more than 1 percent of fund size

b) Not more than 5 percent of fund size

c) Not more than 10 percent of the fund size

d) Not more than 20 percent of the fund size

Q 5. Which funds target companies whose market capitalization is lower than that of large-cap companies?

a) Sector funds

b) Mid / Small-cap

c) Equity funds

d) Index funds

Q 6. Which ratio is also called as Expense ratio?

a) Profitability ratio

b) Activity ratio

c) Operating ratio

d) Market test ratio

Q 7. Which decision is another important area of financial management. Here financial manager is required to identify situations that require more funds where funds remain idle or where proper use of funds is not made.

a) Procurement of funds

b) Allocation of funds

c) Raising of capital

d) Acquisition of funds

Q 8. Under which section of the Companies Act, 1956 requiring the preparation and presentation of the Board of Directors of the company shall lay at every annual general meeting of the company?

a) Section 210

b) Section 211

c) Section 212

d) Section 213

Q 9. The exchange will draw money out of one party's margin account and put it into the other's Account so that each party has the appropriate daily loss or profit. If the margin account goes below a certain value, then a margin call is made, and the account

a) Futures contract

b) Open contract

c) Marking to market

d) Investment to market

Q 10.
Management Accounting provides invaluable services to management in performing___________

A. planning and controlling management principles

B. analysis and interpretation of financial data

C. supply of regular funds

D. all management functions

Q 11. Which of the following is an example of Profitability ratios?

a) Cash ratio

b) Operating ratio

c) Global net premium

d) Acid test ratio

Q 12. Which of the following is an objective of Disclosure?

a) Providing insurance to the public at a fair price and non-discriminatory rates, terms, and conditions.

b) Achieving transparency of operations resulting in building up market confidence in the insurance industry and its sustained growth

c) Provide effective and efficient service to policyholders and claimants to achieve a high degree of consumer satisfaction.

d) All of the above

Q 13. Q13) To coordinate and line up the various functions of the Budget Committee in preparation of the budget and fixing budgetary limits for various heads or centers, there should be a responsible person called____________ who will provide data and information

a) Agent

b) Budget officer

c) Manager

d) Chief Operating officer

Q 14. The difference between a bid and an offer is called?

a) Offer

b) Spread

c) Bid

d) Budget

Q 15. Name the Securities which is specified during the issuance of those securities and that rate remains unchanged during the entire tenor of those securities.

a) Securities with Embedded Derivatives

b) Securities with Fixed Coupon rate

c) Zero Coupon Rate

d) Securities for either subscription is received or the repayment is made in installments.


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