IC89 - MANAGEMENT ACCOUNTING-03
| Q1.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 |
| Q2.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 |
| Q3.Which of the following is an example of Unsystematic risk? |
| a) Market risk |
| b) Purchasing power risk |
| c) Social risk |
| d) Financial risk |
| Q4.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 |
| Q5.Which provides ways and means for organizational planning, coordination, and control to achieve the business goal? |
| a) Budget |
| b) Decision |
| c) Planning |
| d) Designing |
| Q6.Under the 'Gold Stand ard' 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 |
| Q7.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 to implementation |
| d) All of the above |
| Q8.The 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 |
| Q9.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 |
| Q10.ABC Ltd is planning for investment in an Engineering project requiring a capital outlay of Rs.3,00,00. The project analyst and evaluator have estimated the following annual earning after depreciation, but before tax: The annual profit before tax(PBT) shown in the above schedule has been arrived after charging 20% Depreciation on the original project cost(I.e. On Straight-line Method) and is subject to Tax @50% of the net income. Calculate Rate of Return on Original Investment Method? |
| a) 14.26% |
| b) 15.64% |
| c) 16.67% |
| d) 18.56% |