IC89 - MANAGEMENT ACCOUNTING-01

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Q1.FDI is an important route for raising funds from____.
   a) Debtors
   b) Creditors
   c) Foreign sources
   d) Banks
 
Q2.In which of the following types of options does the owner require the sale to take place at any time up to the maturity date?
   a) Call Option
   b) Put Option
   c) American Option
   d) European Option
 
Q3.Which of the following risk arises when an otherwise profitable investment is impaired as a result of adverse legislation, harsh regulatory climate, or nationalization by a socialistic Government?
   a) Market risk
   b) Interest rate risk
   c) Social or Regulatory risk
   d) Purchasing power risk
 
Q4.In the global market today, the currency of the country is traded against another's in a profitable manner. The market that enables this trade of currency is called__.
   a) Indian Exchange rate
   b) Foreign Exchange rate
   c) Investment management
   d) Portfolio management
 
Q5.An unlisted company which has already ADR / GDR in the Global market has to list in the domestic market on making profit or within____of such issue of ADR / GDR, whichever is earlier.
   a) One year
   b) Three years
   c) Five years
   d) Seven years
 
Q6.Which risks refer to the risk accruing from the fact that a borrower may not pay interest and or principal on time?
   a) Financial risk
   b) Business risk
   c) Default risk
   d) Market risk
 
Q7.Which of the following financial decisions determine how costly funds are allotted and committed to various projects and plans?
   a) Investment decisions
   b) Financing decisions
   c) Divident decisions
   d) Procurement decisions
 
Q8.Which contract is a standardized contract between two parties to buy or sell a specified asset of a 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
 
Q9.Which system constitutes an integrated set of money flows on account of foreign trade and inflow of cross-border capital and the related financial institutions that administrator and do governance on the quantities of money?
   a) International Monetary system
   b) International Financial system
   c) International Regulatory system
   d) None of these
 
Q10.Which of the following shall be classified as 'Reserves and Surplus' in a balance sheet of a company?
   a) Capital reserves
   b) Securities premium reserve
   c) Debentures redemption reserve
   d) All of the above

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