IC89 - Management Accounting -18
| Q1.Considering that shares of White and Green Ltd. are quoted at a P / E ratio of 7.5 times and retained earnings per share being 40% is Rs. 4 per share, compute the following: |
| a) 10.28% |
| b) 18.8% |
| c) 26.24% |
| d) 32.54% |
| Q2.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 |
| Q3.What is the maximum period of maturity for money market instruments? |
| a) Two years |
| b) One year |
| c) Three years |
| d) Five years |
| Q4.A system that interacts with the environment by taking action and adapting itself is called____. |
| a) Deterministic System |
| b) Probabilistic System |
| c) Closed System |
| d) Open System |
| Q5.What is the rate at which the currency of one country is exchanged for or converted into the currency of another country? |
| a) Exchange |
| b) Exchange rate Quotations |
| c) Spot transaction |
| d) Foreign transaction |
| Q6.__which is one of the apprising techniques of investment decisions can be defied as The firm's decision to invest its current assets most efficiently and effectively in the long-term projects and activities with the objective of earning a good return on investment. |
| a) Financial accounting |
| b) Capital budgeting |
| c) Financial statement |
| d) Investment avenues |
| Q7.It is a quotation that indicates the unit of domestic currency as against a single unit of the foreign currency? |
| a) Direct Quotation |
| b) Indirect Quotation |
| c) Forward Quotation |
| d) Spot Quotation |
| Q8.Which of the following is correct about a Non-life insurer's financial statements? |
| a) Revenue Account (Form A- RA) |
| b) Profit and Loss Account(Form PL) |
| c) Profit and Loss Account(Form A-PL) |
| d) Revenue Account (Form RA) |
| Q9.M/S Y Company Ltd is planning for capital investment Rs.1,00,00,000 in E-commerce in 2007 with the following estimation of increase in cash inflows from business operation for Rs.20,00,00, Rs.30,00,00, Rs.40,00,00, Rs.50,00,00, Rs.30,00,00 in next 5 years. The cost of capital is 10%. Calculate Net Present Value |
| a) 15,79,000 |
| b) 25,78,000 |
| c) 35,28,000 |
| d) 54,24,9854 |
| Q10.The Public Provident Fund is a long-term investment that locks up your money for ____. |
| a) 8 years |
| b) 10 years |
| c) 15 years |
| d) None of these |