IC89 - Management Accounting - 2

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Q 1. Which funds are invested in equity shares of companies and enable the investors to derive the benefits of investment opportunities in the stock market?

a) Sector funds

b) Large-cap funds

c) Equity funds

d) Index funds
 
Q 2. A _______________ is to deal with any or all of the following aspects which are beyond the scope and duties of an accountant in a large business organization such as Capital budgeting and Financial investment.

a) Board of Directors

b) Employees

c) Financial manager

d) None of these
 
Q 3. Which of the following is an example of Unsystematic risk?

a) Market risk

b) Purchasing power risk

c) Social risk

d) Financial risk
 
Q 4. Which ratios are mostly used for the listed companies or the companies whose stocks and debentures are traded in the stock exchanges?

a) Current ratio

b) Solvency ratio

c) Market test Ratios

d) Capital Gearing ratio
 
Q 5. Which provides ways and means for organizational planning, coordination, and control to achieve the business goal?

a) Budget

b) Decision

c) Planning

d) Designing
 
Q 6. Under the 'Gold Standard' Financial System from 1873-1914, which of the below were used as Reserve Assets?

a) Gold and Silver

b) Gold and Pound

c) Gold and Dollar

d) Dollar, Mark and Pound
 
Q 7. Which of the following is a feature of budgets?

a) It is prepared for a definite budget period.

b) It is prepared in advance of the commencement of the budget period

c) It is approved by the corporate management before it is put into implementation

d) All of the above
 
Q 8. Current ratio, Acid test ratio, and Cash ratio are examples of which ratio?

a) Activity ratio

b) Liquidity ratio

c) Market test ratio

d) Profitability ratio
 
Q 9. Which risk is the variability of return on stocks or portfolios due to changes in the nation's economy, tax reforms by the Government, or a change in the world energy situation?

a) Systematic risk

b) Unsystematic risk

c) Business risk

d) Default risk
 
Q 10. ABC Ltd is planning to invest in an Engineering project requiring a capital outlay of Rs.3,00,00. The project analyst and evaluator have estimated the following annual earnings after depreciation, but before tax: The annual profit before tax(PBT)

a) 14.26%

b) 15.64%

c) 16.67%

d) 18.56%
 
Q 11. What is a method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial, and other qualitative and quantitative factors?

a) Technical analysis

b) Fundamental analysis

c) Portfolio management

d) Investment decision
 
Q 12. Which policy is also called an Anticipated Endowment policy?

a) Money-back policy

b) Double Endowment policy

c) Full endowment

d) Traded Endowment.
 
Q 13.
Propose a system that does not interact with the environment or does not change with changes in any social, political, economic, market changes, technological, etc. factors.

Probabilistic system  

Open System  

Closed System  

Deterministic system  

Manual System 

 
Q 14. ______ is one of the principal security/financial instruments, which signifies a share of ownership in a corporation and represents a claim on the part of the corporation's assets and earnings.

a) Bonds

b) Debentures

c) Stock

d) Derivatives
 
Q 15. Which of the following types of forecasting is greatly used by MNCs for the prediction of future value?

a) Technical Forecasting

b) Fundamental Forecasting

c) Market-Based Forecasting

d) Regression Forecasting



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