IC89 - Management Accounting - 4

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Q 1. What is the mean of the squares of the deviations of returns with reference of their average value?

a) Rate of return

b) Marketability

c) Variance

d) Tax benefits
 
Q 2. Who has also dealt with various aspects related to public disclosures by insurance companies through issuance of Guidance papers, Stand ards and Principles?

a) Insurance Regulatory Development Authority of India

b) Reserve Bank of India

c) The Securities and Exchange Board of India

d) International Association of Insurance Supervisors
 
Q 3. Which ratios indicated the ability of the firm to meet its current or short-term obligations as and when they become due for payment?

a) Profitability ratio

b) Activity ratio

c) Market test ratio

d) Liquidity ratio
 
Q 4. Which activities are the principal revenue-producing activities of a firm and other activities that are not investing or financing activities?

a) Investing activities

b) Financing activities

c) Operating activities

d) Functional activities
 
Q 5. Which of the following is considered as budget center outside the head office?

a) Fire Department

b) Regional office

c) Engineering Department

d) Marine Department
 
Q 6. FDI is an important route for raising funds from_____________ .

a) Debtors

b) Creditors

c) Foreign sources

d) Banks
 
Q 7. ________________refers to the face value of the bond the amount the issuer promises to pay at the time of maturity.

a) Coupon rate

b) Maturity date

c) Par value

d) Interest rate
 
Q 8. Considering that shares of White and Green Ltd. are quoted at a P / E ratio of 7.5 times and retained earnings per share being 40% is Rs. 4 per share, If Cost of equity of the company when investors expect annual growth rate of 10% Compute the follo

a) Rs.88

b) Rs.100

c) Rs.114

d) Rs.136
 
Q 9. In _________, the SEBI Act was enacted, which gave statutory status to SEBI.

a) 1990

b) 1991

c) 1992

d) 1993
 
Q 10. An investment of Rs.1,00,000 in 2011 in a project which will generate net cash inflows of Rs.20,000, Rs.30,000, Rs.-40,000, Rs.50,000, Rs.30,000 in next 5 years. The cost of capital for the firm is 20%. Calculate Net Present Value of net cash inflows

a) -39,652

b) 40,256

c) -45,265

d) -49,520
 
Q 11. What refers to chance of loss of expected return on investment?

a) Risk on investment

b) Marketability

c) Tax benefits

d) Rate of return
 
Q 12. Which contract is a stand ardised contract between two parties to buy or sell a specified asset of certain quantity and quality for a price agreed upon today with delivery and payment occurring at a specified future date, the delivery date?

a) Lock

b) Open

c) Futures

d) Forward
 
Q 13. Q13) Financial management deals with

a) Procurement of funds

b) Allocation of funds

c) Both a and b

d) None of the above
 
Q 14. In Spot transaction, if any transaction is done on Friday, then its settlement would be on __________.(When the location countries have holidays on Saturday and Sunday)

a) Monday

b) Tuesday

c) Wednesday

d) Thursday
 
Q 15. In which schedule of the Companies act, 2013 financial statements of mutual funds or Asset Management Companies are to be prepared?

a) Schedule I

b) Schedule II

c) Schedule III

d) Schedule IV



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