IC89 - Management Accounting -22
IC89 Management Accounting- click here to start mock test series
| Q1.What acts as a Special Purpose Vehicle (SPV) for mobilization of savings and investments and formation of capital for organizations? |
| a) Mutual funds |
| b) Financial statement |
| c) Debt market |
| d) Insurance |
| Q2.Which also provides means and ways to determine the prices of these assets and currency rate of the exchange rate? |
| a) International Monetary system |
| b) International Financial system |
| c) International Regulatory system |
| d) None of these |
| Q3.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% |
| Q4.The difference between the cash inflows and outflows is known as ____. |
| a) Net cash flow |
| b) Cash |
| c) Fund flow statement |
| d) Operating activities |
| Q5.___ of investment is one of the major considerations for evaluation of the quality of investment and it may be either high or low depending upon its degree of liquidity. |
| a) Risk on investment |
| b) Rate of return |
| c) Variance |
| d) Marketability |
| Q6.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 |
| Q7._____ is an identification of a probable future event and assessment of its volume and value. |
| a) Budget |
| b) Foretell |
| c) Prediction |
| d) Forecast |
| Q8.What is the maximum period of maturity for money market instruments? |
| a) Two years |
| b) One year |
| c) Three years |
| d) Five years |
| Q9.Under which derivative products provide the buyer the right, but not the obligation to exercise the contract under the terms specified? |
| a) Lock products |
| b) Option products |
| c) Forward products |
| d) Contract products |
| Q10.Business entities are required to render_____ for taking various decisions in respect of investment, capital budgeting, Long-term and Short-term financing, import and export transactions, assessment of earnings. |
| a) Cross Rates |
| b) Exchange Rate Forecasting |
| c) Foreign Exchange Market |
| d) None of these |