IC89 - Management Accounting - 3

Q 1. _________ per share of common stock is the shareholder's equity-total shares minus liabilities and preferred stocks.

a) Par value

b) Book value

c) scrap value

d) Final value
 
Q 2. A ___________ tax benefit refers to relief from taxation when an investment is realized or liquidated.

a) continuing

b) Initial

c) Terminal

d) None of these
 
Q 3. A ________ is a contract to buy or sell the underlying asset for a price specified today at a pre-determined time.

a) Forward

b) Open

c) Lock

d) Futures
 
Q 4. As per Disclosures Forming part of Financial Statements (Life Insurer) PART II, which of the following shall be disclosed by way of notes to the Balance Sheet?

a) Partly-paid up investment

b) Underwriting commitments outset and ing

c) Claims, other than those under policies, not acknowledged as debts

d) All of the above
 
Q 5. How is the fixed assets turnover ratio calculated?

a) Net sales / Working Capital

b) Net sales / Fixed assets

c) Net sales / Total assets

d) Net sales / Capital Employed
 
Q 6. Which risk arises due to fluctuations in the prices of securities and equity shares traded in the market though the earning power of the corporate sector and the interest rate structure remain more or less unchanged?

a) Interest rate risk

b) Financial risk

c) Default risk

d) Market risk
 
Q 7. What is a contract that is written between two parties and the value of which is derived from the value of an underlying widely-held and easily marketable asset?

a) Foreign Market

b) Foreign Exchange rate

c) Derivative Security

d) Forward
 
Q 8. The investors of Mutual funds are known as ________.

a) Customer

b) Agents

c) Unitholders

d) Policyholders
 
Q 9.
The exposure norms for investment by insurance companies are also linked to the size of the investment assets of the Insurance Company. If the investment assets are Rs 250,000 crores or more, what is the limit of the investee company?

5% of Outstanding equity shares (face value)  

10% of Outstanding equity shares (face value)  

12% of Outstanding equity shares (face value)  

15% of Outstanding equity shares (face value)  

20% of Outstanding equity shares (face value)

 
Q 10. In this phase for maximization of wealth of the shareholders, the financial management has developed many models and methods to encompass certain critical issues like investment decisions, Working capital management, and Dividend decisions

a) Critical phase

b) Traditional phase

c) Modern phase

d) None of these
 
Q 11. Under which form the Statement of Investment Asset(Life insurer-Quarterly) be submitted within 30 days of the end of the quarter and verified by the Principal Officer of the Chief of Investment?

a) Form 1

b) Form2

c) Form3A

d) Form 3B
 
Q 12. ___________________ represent long-term debt instruments.

a) Equity shares

b) Bonds and Debentures

c) Real Asset

d) Preference shares
 
Q 13. Q13) Which funds focus only on stocks from a certain sector such as healthcare, technology, financial services, etc?

a) Sector funds

b) Large-cap funds

c) Index funds

d) Equity funds
 
Q 14. Corporate financial management uses financial statement analysis for which of the following purposes?

a) Strategic decision making

b) Financial risk analysis

c) Financial planning

d) All of the above
 
Q 15. The first step of budgetary control is the ___________ which is a formal statement showing the allocation of financial resources for different products, estimated revenue collection from them in consideration of financial resources allocated or budgeted expe

a) Functional responsibility

b) Evaluation of budget

c) Preparation of budget

d) None of these