IC89 - Management Accounting -20

IC89 - Management Accounting- click here to start mock test


Q1.This transaction is a hybrid of both Spot and Forward transactions in different directions requiring the two parties agree to exchange the currencies for a fixed period of time and to reverse the transaction at the future date?
  a) Forward transaction
  b) Swap transaction
  c) Spot transaction
  d) None of these
 
Q2.Insurers are required to display information based on the yearly audited statement. Accordingly, all formats as specified in the circular need to be disclosed on yearly basis for the last __.
   a) 2 years
   b) 3 years
   c) 4 years
   d) 5 years
 
Q3.An investment of Rs.1,00,000 in 2007 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 15%. Calculate Net Present Value of net cash inflows
   a) 8821
   b) 9910
   c) 9500
   d) 7958
 
Q4.The _____ plays a very important role in economic growth through the Mobilisation of savings and the formation of capital.
   a) Financial market
   b) Financial system
   c) Equity shares
  d) Derivatives
 
Q5.Which of the following type of forecasts are based on market indicators?
   a) Technical Forecast
   b) Fundamental Forecast
   c) Market Based Forecast
   d) Regression Forecast
 
Q6.Which of the following is an Application of Working capital or funds?
   a) Funds from business operation
   b) Incomes from other sources
   c) Redemption of Debentures or preference shares
   d) Fresh introduction of Capital or issue of Additional capital
 
Q7.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 Modified Internal Rate of Return(MIRR)?
   a) 10%
   b) 20%
   c) 30%
   d) 40%
 
Q8.The option to buy an asset is called ____.
   a) Put option
   b) Call option
   c) European option
   d) American option
 
Q9.Which are the acquisition and disposals of long-term assets and other investments not included in cash equivalent?
   a) Cash equivalents
   b) Investing activities
   c) Financing activities
   d) None of the above
 
Q10.Risk on investment refers to the chance of loss of expected return on investment. Say whether True or False.
   a) True
   b) False

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