IC89 Mock Test Sample 2
Management Accounting supports business planning, budgeting, forecasting, investment analysis, and decision-making. Budgets are prepared in advance to estimate revenues and expenses and help organizations achieve financial goals. Financial assets include paper or electronic claims, while equity funds invest mainly in company shares. Ratios such as liquidity ratio, market test ratio, and profitability ratio help evaluate company performance. Risks in investment include systematic and unsystematic risks. Forecasting methods like technical forecasting and regression forecasting are widely used in financial analysis. Financial managers and boards of directors play important roles in financial planning, while different financial systems and securities support capital market operations.
Q1. What is a precise financial plan providing estimated revenues and expenses?
a) Budget
b) Decision making
c) Planning
d) Process
Q2. Which ratios are mostly used for listed companies?
a) Liquidity ratio
b) Profitability ratio
c) Market test ratio
d) Expenses ratio
Q3. Which derivatives are privately negotiated derivative contracts?
a) Commodity Derivative
b) Over the Counter Derivative
c) Exchange Traded Derivatives
d) Embedded Derivative
Q4. Which assets are claims in paper or electronic form on the issuer?
a) Real assets
b) Financial assets
c) Investment asset
d) None of these
Q5. Who has devised the codes and symbols for currencies of various countries?
a) ISO
b) IRDAI
c) SEBI
d) RBI
Q6. Which funds are invested in equity shares of companies?
a) Sector funds
b) Large-cap funds
c) Equity funds
d) Index funds
Q7. __________ is to deal with any or all of the following activities.
a) Board of Directors
b) Employees
c) Financial manager
d) None of these
Q8. Which of the following is an example of Unsystematic risk?
a) Market risk
b) Purchasing power risk
c) Social risk
d) Financial risk
Q9. Which ratios are mostly used for listed companies or corporations?
a) Current ratio
b) Solvency ratio
c) Market test Ratios
d) Capital Gearing ratio
Q10. Which provides ways and means for organisational planning?
a) Budget
b) Decision
c) Planning
d) Designing
Q11. Under the 'Gold Standard' Financial System from 1873-1914, which currencies were used?
a) Gold and Silver
b) Gold and Pound
c) Gold and Dollar
d) Dollar, Mark and Pound
Q12. Which of the following is a feature of budgets?
a) Prepared for a definite budget period
b) Prepared in advance
c) Approved by corporate management
d) All of the above
Q13. 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
Q14. Which risk is variability of return on stocks or portfolio due to market movements?
a) Systematic risk
b) Unsystematic risk
c) Business risk
d) Default risk
Q15. ABC Ltd is planning investment in an engineering project. What is the value mentioned?
a) 0.1426
b) 0.1564
c) 0.1667
d) 0.1856
Q16. What is a method of evaluating a security that attempts to predict future prices?
a) Technical analysis
b) Fundamental analysis
c) Portfolio management
d) Investment decision
Q17. Which policy is also called as Anticipated Endowment policy?
a) Money back policy
b) Double Endowment policy
c) Full endowment
d) Traded Endowment
Q18. Propose a system that does not interact with the environment.
a) Probabilistic system
b) Open System
c) Closed System
d) Deterministic system
Q19. ________ is one of the principal security/financial instruments.
a) Bonds
b) Debentures
c) Stock
d) Derivatives
Q20. Which type of forecasting is greatly used by managers?
a) Technical Forecasting
b) Fundamental Forecasting
c) Market Based Forecasting
d) Regression Forecasting
