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%

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