IC89 - Management Accounting -21
IC89 Management Accounting Mock Test- Click Here To Start
| Q1.In an insurance company, which of the following will be considered as 'budget center'? |
| a) Branch office |
| b) Divisional office |
| c) Regional office |
| d) All of the above |
| Q2.Which of the following are features 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 |
| Q3.What is a precise financial plan providing estimated revenues and costs and basis for control over future operations? |
| a) Budget |
| b) Decision making |
| c) Planning |
| d) Process |
| Q4.Debt instruments that have a maturity of less than one year at the time of issue are considered as ____. |
| a) Mutual fund investments |
| b) Real Estate |
| c) Money Market investments |
| d) None of these |
| Q5.Which funds follow the performance of a benchmark index such as s and P BSE Sensex or CNX Nifty, by investing in the stocks that constitute the index and in exactly the way these stocks get their weight- value in the index? |
| a) Sector funds |
| b) Large-cap funds |
| c) Index funds |
| d) Equity funds |
| Q6.Calculate the expected rate of return for shares A using Rm(Market rate of the portfolio)? |
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| Q7.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 |
| Q8.An investment of Rs.1,00,000 in 2010 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) 40,520 |
| b) -42,730 |
| c) -50,256 |
| d) 46,215 |
| Q9.In the insurance industry, the _____ is of prime importance to the users of the financial statements as the insurance company carries on risk-taking business dealing with an intangible product. |
| a) Fund flow statement |
| b) Cash flow statement |
| c) Current liabilities |
| d) None of the above |
| Q10.What is a contract to buy or sell an underlying asset at some pre-decided future date at a price agreed upon today? |
| a) Option |
| b) Lock |
| c) Forward |
| d) Contract |
