Strategic Finance - 16

Question 1 Decrease in leverage results in increasing the :-
Correct Answer Overall cost of capital
Question 2 Value implies that something has :-
Correct Answer Worth
Question 3 Organisational changes are similar to mission changes.
Correct Answer True
Question 4 In value of assets method the following is also to be included as they are also of value
to the company :-
Correct Answer Non trading assets
Question 5 In the reproduction value method of valuation, the value of assets is taken to be on the
basis of ________
Correct Answer Replacement cost
Question 6 Diversification helps in preserving a firm's reputation & goodwill.
Correct Answer True
Question 7 Normally the basis for identifying an enterprise segments are :-
Correct Answer The organizational structure of an enterprise
Question 8 Investments having no physical existence includes :-
Correct Answer Shares , Debentures , Bonds
Question 9 The 3 groups of participants in a firm are :-
Correct Answer Suppliers of equity , Debt suppliers , Firm Managers
Question 11 A good accounting system does NOT have the characteristics such as :-
Correct Answer Does not cover decisions over the life cycle
Question 12 The direct costs tier normally only includes the following :-
Correct Answer The personnel payroll , Supplies , Individual rental equipment
Question 13 ________ are not diversible.
Correct Answer Market related risks
Question 14 The important aspect of dividend policy is :-
Correct Answer To determine the amount of earnings to be distributed to shareholders ,
Amount to be retained in the firm
Question 15 A company is prohibited to buy back its own shares in the following circumstances :-
Correct Answer Through any subsidiary company , Through any investment company , If a
company defaults in repayment of deposits or interest due thereon
Question 16 The main theories behind share repurchases are :-
Correct Answer Dividend or personal taxation hypothesis , Leverage hypothesis , Information
or signalling hypothesis
Question 17 A change in the method of depreciation is treated as a change in an accounting policy
and is disclosed accordingly.
Correct Answer True
Question 18 The main characteristics of CAPM are :-
Correct Answer It is an equilibrium Model , It describes the pricing of assets as well as
derivatives , Expected security return = Riskless return + beta x (expected market risk premium)
Question 19 Segment result is segment revenue less segment expenses.
Correct Answer True
Question 20 To `gather costs', means capturing all relevant expenses that pertain to the selected
model and processes.
Correct Answer True
Question 21 The resource theory considers that the competitive position of a firm depends on its
________ Assets.
Correct Answer Specific
Question 22 Segment revenue includes ________.
Correct Answer Revenue from transactions with other segments of the enterprise
Question 23 Deferred payment plan is also known as:-
Correct Answer Earn out plan
Question 24 The statute governing an enterprise may provide the basis for computation of the
depreciation.
Correct Answer True
Question 25 The final selection of the method of shares valuation depends upon ________.
Correct Answer The purpose for which valuation is being done.
Question 26 In a merger decision, the value of a firm depends upon:-
Correct Answer Earnings , Operating characteristics of acquiring firm , Financial
characteristics of acquiring firm
Question 27 In an aggressive approach :-
Correct Answer There is a very large risk of shortage of funds
Question 29 Significant influence is the power to :-
Correct Answer Participate in the financial decisions , Participate in the operating policy
decisions
Question 30 The costs should be gathered & allocated within the organisation at the ________
structural layer.
Correct Answer Lowest possible
Question 31 A single organisation model serves to keep all individual initiatives to be targeted into
a co-ordinated plan.
Correct Answer True
Question 32 During the costing process, we look at ________.
Correct Answer Resource consumption
Question 33 Money becomes less valuable when received at a latter stage instead of in present
time.
Correct Answer True
Question 34 The external staffing performance indicators include :-
Correct Answer Compensation per Re. Profit , Personnel services head count , Profit per head
Question 35 The Management of the Company may enter into a negotiated purchase, which is
referred to as :-
Correct Answer Greenfield
Question 36 One of the selective developments that has taken place in recent times is companies
are going in for :-
Correct Answer Activity based costing and management
Question 37 ________ is not a characteristic of financial conglomerates.
Correct Answer Provide ineffective competitive process
Question 38 An investment property is an investment in land or buildings :-
Correct Answer Not intended to be occupied substantially for use by investing enterprise , Not
intended to be in the operations of the investing enterprise
Question 39 Notes payable means the buyer signs a note that evidences a debt to the seller.
Correct Answer True
Question 40 Business risk & financial risk do not have any influence on ________.
Correct Answer Accounting numbers
Question 41 During Share repurchase, it is necessary to transfer certain sum to :-
Correct Answer Capital redemption reserve Account
Question 42 The main assumptions for stock repurchase models are as follows :-
Correct Answer The market is efficient , There is perfect competition in the securities market
Question 43 Cash dividends are taxable at ordinary tax rates.
Correct Answer True
Question 44 When a firm invests in human resources by acquisition & training, it anticipates a
________
Correct Answer Future generation of profits & services
Question 45 The amount to be invested by any single investor in a commercial paper shall not be
less than Rs. ________.
Correct Answer 25 lacs
Question 46 Tender offers are used primarily for :-
Correct Answer Large Equity repurchases
Question 47 Many companies claim their main assets are their :-
Correct Answer People

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Posted in: Strategic Finance (Set VI)

Strategic Finance - 15

Question 1 If a company is following multiple accounting system, the activity accountant will
have to match data across
Correct Answer Codes , Time periods , Systems
Question 2 Combination of 2 or more companies into existing company is called ________.
Correct Answer Absorption
Question 4 For M & As, the acquiring firm needs industry data on :-
Correct Answer Market growth , Nature of competition , Degree of regulation
Question 5 A high payout policy on dividends implies :-
Correct Answer More current dividends , Less retained earnings
Question 6 HLL the largest FMCG company has a turnover of Rs. ________.
Correct Answer 118 Bn
Question 7 The scope of the data required relates to the scope of the activity model & processes
under review.
Correct Answer True
Question 8 The total cost of the activitymodel allocated by the applied activity drivers to the
output of the activity model is called________.
Correct Answer The cost of the output
Question 9 The voluntary market based method means :-
Correct Answer Develop a consistent framework which can be operational across sectors and
countries
Question 10 Exit costs are classified into 3 categories namely :-
Correct Answer Lost efficiency prior to separation , Job vacancy cost during the new search ,
Termination pay
Question 11 The offer price by the acquiring company should be an average of the weekly high &
low for :-
Correct Answer The last 26 months
Question 12 One of the advantages of trade credit is its flexibility i.e. the firm does not :-
Correct Answer Have to sign a note , Pledge collateral , Adhere to strict payment schedule
Question 13 A firm with a judicious mixture of debt and equity will have :-
Correct Answer Lowest cost of capital , High value of firm , Good market reputation
Question 14 The acquirer should intimate to the target company & the concerned stock exchanges
as soon as its holding touches :-
Correct Answer 5 % of the voting capital of the target company
Question 15 What is a very important factor in any kind of merger?
Correct Answer Exchange ratio
Question 16 For determining exchange ratio, the model developed by Conn & Nielson is used.
Correct Answer True
Question 17 As per Pecking order theory, which is the costliest means of funding :-
Correct Answer Equity Shares
Question 19 Capital gains are taxed at ________.
Correct Answer Preferentially lower rate
Question 20 Articles of association should authorise buy back of securities as per the Company's
Act.
Correct Answer True
Question 21 In today's fast moving world, the quickest way to get information on a firm is through
________.
Correct Answer Internet
Question 22 Suppliers of equity are interested in :-
Correct Answer High share prices
Question 23 The buyback shall be made only on stock exchanges with electronic trading facility.
Correct Answer True
Question 24 Accounting standard 19 for leases statement is applied in accounting for all leases
other than :-
Correct Answer Lease agreements to explore for or use natural resources , Licensing
agreements for items such as motion picture films , Lease agreements to use land
Question 25 Odd lots purchase is not a method of buy back of shares.
Correct Answer False
Question 26 Segment liabilities do not include :-
Correct Answer Borrowings & other liabilities that are incurred for financing rather than
operating purpose
Question 27 Economic analysis usually covers :-
Correct Answer A small number of improvement alternatives
Question 28 A firm using a conservative policy for determining the requirements of current assets
:-
Correct Answer Has fewer production stoppages , Ensures quick deliveries to customers ,
Stimulates sales
Question 29 Forfeiting is mostly used for ________.
Correct Answer Big ticket items & durable goods
Question 30 The objective of a dividend policy should be to maximize shareholder's return so that
the value of his investment is maximized.
Correct Answer False
Question 31 firms use credit policy as a marketing tool for expanding sales.
Correct Answer True
Question 32 Mature companies with stable earnings generally pay out ________.
Correct Answer A high proportion of earnings
Question 33 As per AS 13 Statement, the following are not considered as investments:-
Correct Answer Shares , Debentures , Other securities held as stock in trade
Question 34 Accounting numbers are not influenced by :-
Correct Answer Dividend policy , Time span of money , Financial and business risk
Question 35 ________ Assets in the balance sheet are normally excluded from the value of total
assets.
Correct Answer Intangible
Question 36 The development aspect of training in firms focus on :-
Correct Answer Promotion to higher job levels
Question 37 work in progress means the inventories are semi manufactured products.
Correct Answer True
Question 38 A company is permitted to buy back its shares through stock exchange in the
following situations :-
Correct Answer The company shall complete the verification of acceptances within 15 days of
the payout , The identity of the company as a purchaser shall appear on the electronic screen when
the order is placed , The buy back shall be made only on stock exchanges with electronic trading
facility
Question 39 Current accounting system is able to provide actual value of employee capabilities &
knowledge.
Correct Answer False
Question 40 The ________ cost tier has the advantage of being the simplest to calculate and
justify.
Correct Answer Direct
Question 41 Operating economies occur due to indivisibilities of resources like :-
Correct Answer People , Equipment , Overheads
Question 42 ________ is a variable expense that can be readily eliminated with organisational
changes.
Correct Answer Rental equipment
Question 43 The HHI index reflects :-
Correct Answer Inequality & degree of concentration
Question 44 ________ is never a part of the output.
Correct Answer Mechanisms
Question 45 It is essential that ABC must fit into the strategy of the company.
Correct Answer True
Question 46 In a matching approach policy, :-
Correct Answer There is a small risk if shortage of funds
Question 47 Which is an example out of the following to which special consideration apply for
depreciation :-
Correct Answer Regenerative natural resources

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Posted in: Strategic Finance (Set VI)

Strategic Finance - 14

Multiple Choice Multiple Answer
Question A firm using a conservative policy for determining the requirements of
current assets :-
Correct Answer Has fewer production stoppages , Ensures quick deliveries to
customers , Stimulates sales
Your Answer Has fewer production stoppages , Ensures quick deliveries to
customers , Increases the ROI
Multiple Choice Multiple Answer
Question The main theories behind share repurchases are :-
Correct Answer Dividend or personal taxation hypothesis , Leverage hypothesis ,
Information or signalling hypothesis
Your Answer Dividend or personal taxation hypothesis , Leverage hypothesis ,
Information or signalling hypothesis
Multiple Choice Single Answer
Question In respect of depreciable assets, which do not have material value,
depreciation is often allocated :-
Correct Answer Fully in the accounting period for which they are acquired
Your Answer Over the residual value
Multiple Choice Single Answer
Question What is the maximum amount involved in the buy back of the total
paid up capital & free reserves of the company?
Correct Answer 0.25
Your Answer 0.25
True/False
Question Tender offers us an alternative approach to acquire another firm.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Cost benefit analysis is the simplest form of comparison between :-
Correct Answer Ideas to determine which is faster, better or cheaper
Your Answer Ideas to determine which is faster, better or cheaper
Multiple Choice Multiple Answer
Question For ABC Analysis the available cost data :-
Correct Answer Has to be adjusted for change , Has to be corrected for
undocumented element costs , Has to be combined with different
types of data from alternate sources
Your Answer Has to be adjusted for change , Has to be corrected for
undocumented element costs , Has to be combined with different
types of data from alternate sources
Multiple Choice Single Answer
Question Today knowledge has become a key determinant for :-
Correct Answer Economic & business success
Your Answer For determining a firm's value
Select The Blank
Question During the costing process, we look at ________.
Correct Answer Resource consumption
Your Answer Expenses
Multiple Choice Single Answer
Question A firm can manage with small inventory if the supply is :-
Correct Answer Prompt & adequate
Your Answer Prompt & adequate
Multiple Choice Multiple Answer
Question Operating economies occur due to indivisibilities of resources like :-
Correct Answer People , Equipment , Overheads
Your Answer People , Equipment , Overheads
Select The Blank
Question If firms have same technology ________ makes the difference i.e.
firms become more productive .
Correct Answer Solid human resource team
Your Answer Solid human resource team
Multiple Choice Single Answer
Question Free Reserves is a component of :-
Correct Answer Equity
Your Answer Equity
True/False
Question There are few methods of allocating depreciation over the useful life
of an assets.
Correct Answer False
Your Answer True
True/False
Question Cash dividends are taxable at ordinary tax rates.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Financial statements classify the following into separate categories :-
Correct Answer Fixed assets , Investments , Current assets
Your Answer Fixed assets , Current assets
Multiple Choice Multiple Answer
Question The cost of an investment includes charges such as :-
Correct Answer Brokerage , Fees , Duties
Your Answer Brokerage , Advertisements , Fees , Duties
Match The Following
Question Correct Answer Your Answer
Information or signalling
hypothesis
Management believes that
the common stock of the
company is undervalued
Management believes that
the common stock of the
company is undervalued
Dividend or Personal
Taxation Hypothesis
Cash dividends are taxable
at ordinary tax rates
Cash dividends are taxable
at ordinary tax rates
Leverage hypothesis Stock repurchases
increases the debt / equity
ratio
Stock repurchases increases
the debt / equity ratio
Wealth transfer among
shareholders
The largest portion of
wealth effect goes to the
non - tendering
shareholders
The largest portion of wealth
effect goes to the non -
tendering shareholders
Multiple Choice Multiple Answer
Question Every business requires funds on a continual basis for expenses
incurred on for :-
Correct Answer Purchase of raw material , Manufacturing costs , Administration
Your Answer Purchase of raw material , Manufacturing costs , Administration
Multiple Choice Single Answer
Question Short term sources of funds include :-
Correct Answer Current Liabilities
Your Answer Current Liabilities
Select The Blank
Question HLL the largest FMCG company has a turnover of Rs. ________.
Correct Answer 118 Bn
Your Answer 118 Bn
True/False
Question Diversification helps in preserving a firm's reputation & goodwill.
Correct Answer True
Your Answer True
True/False
Question If a company has resorted to buyback its shares, it cannot make a
further issue of the same kind of securities within a period of 1 year.
Correct Answer False
Your Answer True
Select The Blank
Question The clean up period is usually ________ months.
Correct Answer 1 to 2 months
Your Answer 1 to 2 months
Multiple Choice Single Answer
Question The bottom line of ABC Process is :-
Correct Answer To achieve a better method of doing the right business pf the
organisation
Your Answer To achieve a better method of doing the right business pf the
organisation
Select The Blank
Question If a segment is not designated as a ________ it should be included
as an unallocated reconciling item.
Correct Answer Reportable segment
Your Answer Operating segment
Multiple Choice Single Answer
Question If a particular item of depreciation or amortisation is included in
segment expense, the related asset is included in :-
Correct Answer Segment assets
Your Answer Segment assets
True/False
Question The intellectual assets of a company are often worth 3 or 4 times the
tangible book value.
Correct Answer True
Your Answer True
True/False
Question Segment result is segment revenue less segment expenses.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question If a firm diversifies managerial teams formed can be shifted from
unproductive activities to productive ones which leads to :-
Correct Answer Improved profitability , Continuity , Growth of the firm
Your Answer Improved profitability , Continuity , Growth of the firm
True/False
Question Book value is based on the balance sheet value of owner's equity.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The overhead expenses include :-
Correct Answer Utilities , Maintenance , Security
Your Answer Daily wages , Maintenance , Security
Match The Following
Question Correct Answer Your Answer
Amount involved in buy
back
Not to exceed 25 % of the
total paid up capital
Not to exceed 25 % of the
total paid up capital
Articles of Association Authorize buy back of
securities
The ratio of debt to total
capital & free reserves
should be 1 : 1
Board of Directors Resolution permitting the
buy back of shares
Authorize buy back of
securities
Shares to be bought back Fully paid up Resolution permitting the
buy back of shares
True/False
Question It is necessary to identify all costs that may be related to an
acquisition.
Correct Answer True
Your Answer True
True/False
Question Notes payable means the buyer signs a note that evidences a debt to
the seller.
Correct Answer True
Your Answer True
Select The Blank
Question ________ know the best about a firm's performance.
Correct Answer Firm Managers
Your Answer Firm Managers
Multiple Choice Single Answer
Question The FEA Tools encompass a vast array of information & policy into :-
Correct Answer One evaluation
Your Answer Many evaluations
Multiple Choice Multiple Answer
Question The employer in offering the job contract assumes a range of legal
obligations such as :-
Correct Answer Rewards - cash like & non cash like , Health & safety policies ,
Pensions & contributions to social security payments
Your Answer Rewards - cash like & non cash like , Health & safety policies ,
Pensions & contributions to social security payments
Select The Blank
Question Business risk & financial risk do not have any influence on ________.
Correct Answer Accounting numbers
Your Answer Accounting numbers
Multiple Choice Multiple Answer
Question A current investment is an investment that is by nature :-
Correct Answer Readily realisable , Intended to be held for not more than 1year from
the date on which investment is made
Your Answer Readily realisable , Intended to be held for not more than 1year from
the date on which investment is made , Can be held for more than 1
year
Multiple Choice Single Answer
Question The depreciation rates or the useful lives of the assets are disclosed
only :-
Correct Answer If they are different from the principle rates specified in the statute
Your Answer If they are different from the principle rates specified in the statute
Multiple Choice Multiple Answer
Question The net income approach is based on following 3 assumptions :-
Correct Answer There are no taxes , Cost of debt is less than equity capitalization
rate , Use of debt doesn't change the risk perception of investors
Your Answer There are no taxes , Cost of debt is less than equity capitalization
rate , Use of debt doesn't change the risk perception of investors
Select The Blank
Question In case of direct placement of commercial papers it may be issued for
maturities ________ from the date of issue.
Correct Answer Between 15 days to 1 year
Your Answer Between 15 days to 1 year
Select The Blank
Question Forfeiting is mostly used for ________.
Correct Answer Big ticket items & durable goods
Your Answer Big ticket items & durable goods
Select The Blank
Question ________ government has made it mandatory to include in their
annual reports information on customers, processes & human capital.
Correct Answer Danish (Denmark)
Your Answer Japanese
Select The Blank
Question ________ are those operating assets that are employed by a
segment in its operating activities.
Correct Answer Segment assets
Your Answer Current assets
Multiple Choice Single Answer
Question When the working capital is less than its peak level :-
Correct Answer The surplus is invested in liquid assets
Your Answer The surplus is invested in liquid assets

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Posted in: Strategic Finance (Set VI)

Strategic Finance -13

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question The support elements consists of important functions
such as :-
Correct Answer Accounting , Automatic data processing , Payroll
Your Answer Payroll , Co-ordination , Accounting
Multiple Choice Single Answer
Question The value of the asset does not include:-
Correct Answer Price per share
Your Answer Price per share
Multiple Choice Single Answer
Question The bottom line of ABC Process is :-
Correct Answer To achieve a better method of doing the right business
pf the organisation
Your Answer To achieve a better method of doing the right business
pf the organisation
Multiple Choice Single Answer
Question When the working capital is less than its peak level :-
Correct Answer The surplus is invested in liquid assets
Your Answer The surplus is invested in liquid assets
True/False
Question Articles of association should authorise buy back of
securities as per the Company's Act.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question During Share repurchase, it is necessary to transfer
certain sum to :-
Correct Answer Capital redemption reserve Account
Your Answer Capital redemption reserve Account
Multiple Choice Single Answer
Question Comparative analysis is :-
Correct Answer A review to ensure consistency within the activity
model & process flow
Your Answer A review to ensure consistency within the activity
model & process flow
Multiple Choice Multiple Answer
Question Exit costs are classified into 3 categories namely :-
Correct Answer Lost efficiency prior to separation , Job vacancy cost
during the new search , Termination pay
Your Answer Lost efficiency prior to separation , Job vacancy cost
during the new search , Termination pay
Multiple Choice Multiple Answer
Question As a general rule, an asset is :-
Correct Answer A good or a right that a firm owns in a determined
moment , Prepayment adjustments , Capitalized
expenses
Your Answer A good or a right that a firm owns in a determined
moment , Prepayment adjustments , Capitalized
expenses
Select The Blank
Question During the costing process, we look at ________.
Correct Answer Resource consumption
Your Answer Resource consumption
Select The Blank
Question Credit standards should be relaxed upon the point
where incremental returns ________ incremental
costs.
Correct Answer Equals
Your Answer Equals
True/False
Question Usually cost data is perfect for ABC Analysis &
distribution.
Correct Answer False
Your Answer False
True/False
Question An activity model is a tool to assist in understanding &
defining the organisation.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The acquiring firm for any M & A will require data
about the target firm which will include :-
Correct Answer Quality of management , Production capabilities ,
Profitability
Your Answer Production capabilities , Capital & labour intensity ,
Profitability
Select The Blank
Question ________ is not a example of segment liability.
Correct Answer Goodwill
Your Answer Goodwill
Multiple Choice Single Answer
Question The value based approach of HRA Tracking suggests
that the value of human resources depends upon :-
Correct Answer Capacity to generate revenue
Your Answer Opportunity cost
Select The Blank
Question ________ are considered most desirable from
shareholders point of view.
Correct Answer Dividends
Your Answer Dividends
Multiple Choice Multiple Answer
Question Shareholders returns consists of 2 components :-
Correct Answer Dividend , Capital gains
Your Answer Capital gains , Dividend
Multiple Choice Single Answer
Question In the book building method, the company makes an
offer to buy back :-
Correct Answer Its specified number of shares at a specified offer
price range
Your Answer Its specified number of shares at a specified offer
price range
Multiple Choice Multiple Answer
Question A company is permitted to buy back its shares through
stock exchange in the following situations :-
Correct Answer The company shall complete the verification of
acceptances within 15 days of the payout , The
identity of the company as a purchaser shall appear
on the electronic screen when the order is placed ,
The buy back shall be made only on stock exchanges
with electronic trading facility
Your Answer The company shall complete the verification of
acceptances within 15 days of the payout , The
identity of the company as a purchaser shall appear
on the electronic screen when the order is placed ,
The buy back shall be made only on stock exchanges
with electronic trading facility
Multiple Choice Single Answer
Question Research into true human resources accounting
began in :-
Correct Answer 1960`s
Your Answer 1960`s
Select The Blank
Question If firms have same technology ________ makes the
difference i.e. firms become more productive .
Correct Answer Solid human resource team
Your Answer Latest & updated techniques
True/False
Question It is necessary to identify all costs that may be related
to an acquisition.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question It is the activity accountant's job to do the following for
the existing organisational structure :-
Correct Answer To define the costs , To refine the costs , To
document the costs
Your Answer To define the costs , To document the costs , Support
the costing of the activities
Multiple Choice Multiple Answer
Question Debt reduces :-
Correct Answer Agency cost of free cash flow , Commitment to pay in
time to all lenders , Freedom of decisions
Your Answer Agency cost of free cash flow , Commitment to pay in
time to all lenders , Freedom of decisions
Select The Blank
Question Stock repurchases ________ the debt / equity ratio.
Correct Answer Increases
Your Answer Increases
Select The Blank
Question If total external revenue attributable to reportable
segments constitutes less than ________ of the total
enterprise revenue additional segments should be
identified as reportable segments.
Correct Answer 75 percent
Your Answer 75 percent
Multiple Choice Multiple Answer
Question A current investment is an investment that is by nature
:-
Correct Answer Readily realisable , Intended to be held for not more
than 1year from the date on which investment is made
Your Answer Readily realisable , Intended to be held for not more
than 1year from the date on which investment is made
, Not similar to current assets
Select The Blank
Question If the segment result of a segment includes interest or
dividend income its segment assets will not include
________.
Correct Answer Payables
Your Answer Related receivables
Multiple Choice Single Answer
Question What is the maximum amount involved in the buy
back of the total paid up capital & free reserves of the
company?
Correct Answer 0.25
Your Answer 0.25
Select The Blank
Question Economies of scale arises with increase in volume of
production leading to________.
Correct Answer Reduction in the cost of production
Your Answer Reduction in the cost of production
Multiple Choice Multiple Answer
Question The 3 groups of participants in a firm are :-
Correct Answer Suppliers of equity , Debt suppliers , Firm Managers
Your Answer Suppliers of equity , Debt suppliers , Firm Managers
Multiple Choice Multiple Answer
Question The important aspect of dividend policy is :-
Correct Answer To determine the amount of earnings to be distributed
to shareholders , Amount to be retained in the firm
Your Answer To determine the amount of earnings to be distributed
to shareholders , Amount to be retained in the firm
True/False
Question Baumul`s Model is similar to EOQ model in inventory
management.
Correct Answer True
Your Answer True
True/False
Question To `gather costs', means capturing all relevant
expenses that pertain to the selected model and
processes.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question When the seller asks for the payment beforemaking
the delivery in order to avoid all risks it is known as :-
Correct Answer Cash before delivery
Your Answer Cash before delivery
True/False
Question When a company is able to assess an individual's
worth, it helps in increasing its own worth.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The depreciation rates or the useful lives of the assets
are disclosed only :-
Correct Answer If they are different from the principle rates specified in
the statute
Your Answer If they are different from the principle rates specified in
the statute
Select The Blank
Question Depreciation is ________ of an asset.
Correct Answer Loss of value
Your Answer Loss of value
Multiple Choice Single Answer
Question usually the `controlling block' tends to be between :-
Correct Answer 20 & 40 percent
Your Answer 20 & 40 percent
True/False
Question Money becomes less valuable when received at a
latter stage instead of in present time.
Correct Answer True
Your Answer False
True/False
Question Diversification helps in preserving a firm's reputation &
goodwill.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Decrease in leverage results in increasing the :-
Correct Answer Overall cost of capital
Your Answer Overall cost of capital
Multiple Choice Multiple Answer
Question The limitations of value of assets approach include :-
Correct Answer Book value of the assets is directly dependent on the
accounting policies followed by the company , There
are no standard procedures for valuation of intangible
assets , No importance to the market value of the
asset
Your Answer Book value of the assets is directly dependent on the
accounting policies followed by the company , There
are no standard procedures for valuation of intangible
assets , No importance to the market value of the
asset
True/False
Question The chance of bankruptcy is small when the leverage
of a firm is small.
Correct Answer True
Your Answer False

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Posted in: Strategic Finance (Set V)

Human Resource Management - 20

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question The data obtained through job analysis are recorded on what is known as job analysis sheet.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Which kind of literature identifies a number of systems & subsystems?
Correct Answer HRD
Your Answer HRD

Select The Blank
Question A fee market economy demands a transparent set of laws and________somthething that the archaic Indian judical system is ill-equipped tocope with
Correct Answer quick disposal of litigation
Your Answer a set of social security legislation

Multiple Choice Multiple Answer
Question Essentials of effective QC's :-
Correct Answer Prompt approval , Regular communication , Unconditional support
Your Answer Prompt approval , Regular communication , Unconditional support

Multiple Choice Multiple Answer
Question It is said that versality will be the key factor in determining employee value with following factors :
Correct Answer Technology , Leadership , Motivation
Your Answer Technology , Leadership , Motivation

True/False
Question The job falling under the same grade get different wage scale.
Correct Answer False
Your Answer True

Select The Blank
Question Under Voluntary retirement scheme income tax benefits for employees who have accepted the scheme are however , valid only for payouts of upto ________
Correct Answer Rs. 5 lakh
Your Answer Rs. 5 lakh

Multiple Choice Multiple Answer
Question Some questions that every corporation needs to address are as follows:-
Correct Answer How well are HR practices linked to business goals , Are good HR practices & HRD systems & processed being designed , Are the systems internally sound consistent & relevant
Your Answer How well are HR practices linked to business goals , Are good HR practices & HRD systems & processed being designed , Are the systems internally sound consistent & relevant

True/False
Question If the assessee is transferred after Feb. the immediate superior will complete the appraisal as at 31st Aug.
Correct Answer False
Your Answer True

Multiple Choice Single Answer
Question What is the programme of allowing flexibility in handling the type of work in various departments of the organisation in a systematic way be the employee during his tenure of employment in an organisation?
Correct Answer Flexi work
Your Answer Flexitime

True/False
Question Through consumers participation in management, consumer will lose their rights through served technique
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question Performance counselling refers to the help provided by a manager to his subordinates, it attempts to help the employee in.-
Correct Answer Supportive atmosphere , Empethetic atmosphere , Setting goals
Your Answer Supportive atmosphere , Empethetic atmosphere , Setting goals

True/False
Question Monitoring and Follow-up follows the distribution of questionnaires to all assessors.
Correct Answer True
Your Answer True

Select The Blank
Question In a re-engineering programme, when a process changes so does the ________ of the concerned employee.
Correct Answer job profile
Your Answer job profile

Multiple Choice Single Answer
Question Under the pre-Interview preparation it is useful to note the key points
Correct Answer Paper
Your Answer Paper

Multiple Choice Single Answer
Question Which system emphasis a lot on the need to motivate people
Correct Answer Human Resourse Development
Your Answer Human Resourse Development

Select The Blank
Question The whole process of conducting a 360 - Degree Feedback process in any Organisation could last about ________.
Correct Answer One & half to about 3 months
Your Answer One & half to about 3 months

Select The Blank
Question ________ is the example of the balanced score card applications in some companies.
Correct Answer AT & T
Your Answer AT & T

Select The Blank
Question A strong ________ can have a lasting effect and provide sustenance to an organisation.
Correct Answer Culture
Your Answer Vision

Multiple Choice Multiple Answer
Question Within the establishment stage of the career development cycle, what are very important occasions for a young employee?
Correct Answer The first promotion , Successfully completed asignment , The first performance appraisal
Your Answer The first promotion , Successfully completed asignment , The first performance appraisal

Select The Blank
Question ________ is known not to hold overly one-sided views.
Correct Answer Judgement
Your Answer Judgement

Select The Blank
Question ________ phase involves generating confidence in the employee to open up and frankly share his perceptions, feeling etc.
Correct Answer Rapport building
Your Answer Rapport building

Match The Following
Question Correct Answer Your Answer

Group goals Vs. Organisational goals Course organisational Politics Course organisational Politics

Better decisions about people based on improved information system HRA benefits HRA benefits

Standard cost method value of human resources for accounting purposes value of human resources for accounting purposes

It is "endomic to every organisation regadless of size, funtion or character of wonership Organisational politidering HRA model


Multiple Choice Single Answer
Question The Main contribution of HRD audit is to focus on
Correct Answer Value-adding HRD
Your Answer Value-function HRD

Select The Blank
Question The ________ provide resources to approved employment schemes in the organised & marginised sectors
Correct Answer Employment Generation Fund
Your Answer National Renewal Grant Fund

Multiple Choice Single Answer
Question Traditionally, human resources has been perceived as,
Correct Answer Bureacratic
Your Answer Lazziz-faire

Multiple Choice Multiple Answer
Question How can the limitations/ misgivings of management participation in employees organisations be overcome ?
Correct Answer by gaining the confidence of union leaders from the initail stages , managements should educate the members about the concept & value in strenghening union functioning , minimising misunderstandings
Your Answer by gaining the confidence of union leaders from the initail stages , managements should educate the members about the concept & value in strenghening union functioning , minimising misunderstandings

Select The Blank
Question Federation & union at all levels are managed on the lines of management of ________
Correct Answer A political body
Your Answer A social organisation

Multiple Choice Single Answer
Question HR managers to gurantee their viability need to think themselves as -
Correct Answer Strategic partners
Your Answer Strategic partners

Multiple Choice Multiple Answer
Question What are the general characteristics of a Technical - functional competence?
Correct Answer Primary interest in functional work , They would like to remain expert rather than become general managers , They consider managerial and administrative responsibilities as avoidable irritants
Your Answer Primary interest in functional work , They would like to remain expert rather than become general managers , They consider managerial and administrative responsibilities as avoidable irritants

Multiple Choice Single Answer
Question Which practices are service related and human resources related?
Correct Answer Organisational
Your Answer Organisational

True/False
Question Organizations gear most of their management succession activities to the immediate past.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question Name the three performance counselling phase.-
Correct Answer Rapport building , Exploration , Action Planning
Your Answer Rapport building , Exploration , Action Planning

Select The Blank
Question In the interview method of training-need identification interviews must clearly distinguish between immediate training needs to improve present performance & ________.
Correct Answer Development needs for growth
Your Answer Development needs for growth

True/False
Question HRD should be series of adhoc decisions and practices.
Correct Answer False
Your Answer False

True/False
Question Increased acceptance of feedback appraisal system is that as large no. of managers work with wide range of other people, it becomes difficult for a single manager to accurately assess their contribution.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question In the stage of career development cycle which out of the following approach should be adopted to bridge the gap? Alternatives for the training should include a -
Correct Answer "Swim or Sink approach"
Your Answer Job rotation

Multiple Choice Multiple Answer
Question In an interview Method of Training Need identification, what do the Questions asked need to outline?
Correct Answer Inputs expected from the Training Department , To prove weakness & strengths of individuals , Opportunities available to overcome such weaknesses.
Your Answer Inputs expected from the Training Department , To prove weakness & strengths of individuals , Opportunities available to overcome such weaknesses.

Multiple Choice Single Answer
Question Accounting is a management science group, what are the managers perceived as,
Correct Answer Decision-maker
Your Answer Decision-maker

Match The Following
Question Correct Answer Your Answer

Continued self development A leadership quality A leadership quality

"Working on your liabilities" Life long mission Life long mission

Assignment to some important task force or committee Offsetting Plateauing effect Officiating Assignment

Need-opportunity Alignment Crucial role played by HRD Success formula


Multiple Choice Multiple Answer
Question Name the internal operational measures dealing with how well HR practices are designed and delivered:
Correct Answer Cycle time, quality & cost of HR practices , The ratio of HR enpenses , The ratio of HR professionals to employee population.
Your Answer Cycle time, quality & cost of HR practices , The ratio of HR enpenses , The ratio of HR professionals to employee population.

Multiple Choice Multiple Answer
Question Under HRD, name the factors that act as motivating forces
Correct Answer Job enrichment , Informal organisation , Participative management
Your Answer Job enrichment , Informal organisation , Participative management

True/False
Question The reviewer has the prime role of recording major appraisal details.
Correct Answer False
Your Answer False

True/False
Question Trade union is a group of two people who come to strengthen their bargaining position.
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question Member ship of the nation wide consumer councils (as formed by the Government) would comprise representative of
Correct Answer various ministeries , manufactures of commerce , cost account & Consumer
Your Answer employess organisations , manufactures of commerce , cost account & Consumer

Multiple Choice Single Answer
Question Participation of management' representatives in the trade unions meetings particularly at the time of industrial dispute help both the parties -
Correct Answer To exchange their contradictory views
Your Answer To exchange their contradictory views

Multiple Choice Single Answer
Question What is it that Moon-lighting by employees, if extensively part taken, affect Human Resource Manager in the future adversely?
Correct Answer Disharmony in individual & organisational goal balance.
Your Answer Disharmony in individual & organisational goal balance.

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Posted in: Human Resource Management (Set-V)

Human Resource Management - 19

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


Multiple Choice Multiple Answer
Question The components of a compensation system includes :
Correct Answer Job Evaluation , Job Description , Job Analysis
Your Answer Job Evaluation , Job Description , Job Analysis


True/False
Question The first HRD department in the Indian corporate sector was started in 1975 in Larsen & Toubro (L & T).
Correct Answer True
Your Answer True


Select The Blank
Question A paper prepared by Mr. P Chidambaram, titled Indian subsidies reveals that in order to cleen its fiscal dificult ina few year, India needs to out down about 50% of subsidies in ________ goods since it yields only 10% returns
Correct Answer Non-merit
Your Answer Non-merit


Select The Blank
Question The factors coming under Discipline & Attendance are Time keeping and ________.
Correct Answer Obedience
Your Answer Obedience


Multiple Choice Single Answer
Question What is the general principle (as per P.A.S policy of premier) of Assessment Routes?
Correct Answer 2nd Assessor-superior of first assessor, 2nd Assessor- superior of the 1st assessor
Your Answer 1st Assessor-immediate superior, 2nd Assessor HR manager


True/False
Question It can be enagued that globalization has reduced poverty in India and China, home to move that half a billion of the world's poor income group
Correct Answer True
Your Answer True


Select The Blank
Question ________ means providing the employee with necessary tools & authority to overcome obstacles to achieving goals.
Correct Answer Employee empowerment
Your Answer Employee empowerment


Multiple Choice Single Answer
Question What is the primary objective behind SSL?
Correct Answer To not only measure training supervisors by comparing their performance with that of several thousand supervisors in other Cos.
Your Answer To objectively measure training needs


Multiple Choice Single Answer
Question Who is the person who should always remain away from Doppelganger effect.
Correct Answer Chief Executive
Your Answer Chief Executive


Multiple Choice Single Answer
Question What is one of the major reasons for a perceived rise in number of moon - lights in the coming future?
Correct Answer Change in values & expectations.
Your Answer A change in standard of living


Multiple Choice Multiple Answer
Question Why do most companies want HRD audit?
Correct Answer Change of Leadership , To make HR function business-driven , For growth & diversification
Your Answer Change of Leadership , To make HR function business-driven , For growth & diversification


Select The Blank
Question ________ are those who provide competitive advantage to corporations.
Correct Answer People
Your Answer Managers


Multiple Choice Multiple Answer
Question What are the factors that warrant the attention for successful implementation?
Correct Answer Feedback management , Action planning , Reinforcement of new behaviour
Your Answer Feedback management , Action planning , Feedback analysis


True/False
Question The functioning of federations and unions has its impact on human resources management of varios industries & organisation
Correct Answer True
Your Answer True


Multiple Choice Single Answer
Question The role of which manager must parallel the needs of his changing organisation.
Correct Answer HR
Your Answer HR


Multiple Choice Single Answer
Question What is the long form of CII?
Correct Answer Confederation of Indian Industry
Your Answer Confederation of Indian Industry


Multiple Choice Single Answer
Question Name one of the components / elements of the flow of decisions in the Management quadrant :
Correct Answer Sound Industrial relations
Your Answer Sound Industrial relations


True/False
Question It is not necessary that the subordinate should feel free to participate without fear in the process of review & feedback.
Correct Answer False
Your Answer False


Select The Blank
Question Most HRD audit are due to failures of ________.
Correct Answer Implementation
Your Answer Implementation


Select The Blank
Question Under Voluntary retirement scheme income tax benefits for employees who have accepted the scheme are however , valid only for payouts of upto ________
Correct Answer Rs. 5 lakh
Your Answer Rs. 3 lakh


Multiple Choice Single Answer
Question The liberalization swept through the nation bringing in a new era which compelled Indian business to value up from shumber & reassess its assumption. The characterstics were that of
Correct Answer a complete or perish situation
Your Answer an open economy


Multiple Choice Multiple Answer
Question Name the two facters which lead people to work:
Correct Answer Economic , Motivation
Your Answer Economic , Motivation


Select The Blank
Question For closure , if there is no response ( from government ) within ________ permission is deemed to have been granted
Correct Answer 60
Your Answer 90


Select The Blank
Question ________ system stresses on discipline and there is simplicity in the form.
Correct Answer Merit rating
Your Answer Rating scale


True/False
Question The individual with a deep speed insight will not go quickly to the least of a problem.
Correct Answer False
Your Answer True


True/False
Question An employee who is categorised as Dead wood is one who has absolutely no potential for growth & should be included in a rationalization programme.
Correct Answer False
Your Answer False


Multiple Choice Multiple Answer
Question Some organisations have successfully experimented with foreign assignment in the career path model. What are the benefits of this form of assignment?
Correct Answer The individual is tested in an alien environment , He is trained to see the business in a globle context , Lack of opportunity in our country dosen't come in the way of career progression
Your Answer The individual is tested in an alien environment , He is trained to see the business in a globle context , Lack of opportunity in our country dosen't come in the way of career progression


Select The Blank
Question HRD ________ is in methodology of evaluating various elements of HRD .
Correct Answer Audit
Your Answer Audit


Multiple Choice Single Answer
Question The first HRD department in the Indian corporate sector was started in which year?
Correct Answer 1975
Your Answer 1975


Multiple Choice Multiple Answer
Question what are the common objections against the treatment of people as assets in a HRM system
Correct Answer There is no assurance of future benefits , people are not owened by the organisation , it may not be recognised by tax laws
Your Answer There is no assurance of future benefits , it does not recognise the human side human side to mgmt side to side to mgt of human resources , people are not owened by the organisation


Select The Blank
Question Employer has to pay ________ of the basic wages to the employees during the lay off period
Correct Answer 0.5
Your Answer 0.5


Multiple Choice Multiple Answer
Question Name the three important components in aligning business strategy with HR practice:
Correct Answer Business Strategy , Human Resource Practices , Organisational Capabilities
Your Answer Business Strategy , Organisational Strategy , Human Resource Practices


True/False
Question Employees feel frustrated due to low specialisation in the work
Correct Answer True
Your Answer True


Multiple Choice Single Answer
Question Under the pre-Interview preparation it is useful to note the key points
Correct Answer Paper
Your Answer Paper


Select The Blank
Question The link between sense of reality and ________ is important for proper understanding of the definition of sense of reality
Correct Answer imagination
Your Answer vision


Multiple Choice Single Answer
Question Five main phases make up the process of the feedback exercise, name the PHASE 4-
Correct Answer Data feeding Reports & Analysis
Your Answer Data feeding Reports & Analysis


Multiple Choice Multiple Answer
Question What are the major advantages of a Generic Benchmarking Technique?
Correct Answer It is readily transferable , New practices, earlier implemented in an entire industry can be brought in, giving an organisation an edge over its rivals. , Proven systems can be implemented with minimal modification
Your Answer It is readily transferable , New practices, earlier implemented in an entire industry can be brought in, giving an organisation an edge over its rivals. , Proven systems can be implemented with minimal modification


Multiple Choice Single Answer
Question What is it that Union leader usually do to gain the confidence of its member?
Correct Answer Win something in grievance procedure
Your Answer Challenge management


Match The Following
Question Correct Answer Your Answer

Knowledge of the subject hand work & a sincere approach requisites for consumersim one of the roles of the advisory committee

To divert manufacturing activities from urban to rural areas one of the roles of the consumer councial a much neglected sphere of the market

The mechanism of price fixation a much neglected sphere of the market one of the roles of the consumer councial

These are not the days of indvidualism & unorganisation unionsim unionsim



True/False
Question Objective of performance appraisal system is to identify the developmental needs of each employee.
Correct Answer True
Your Answer True


Multiple Choice Multiple Answer
Question What were the unmet deliveriables of the economic refructing or what were its put falls?
Correct Answer unmet social objectives , status of small-scale industries , advantage MNC's had over their Indian compethtions
Your Answer unmet social objectives , reliance on agriculture , status of small-scale industries


True/False
Question The process of 360 Degree appraisal is broken into two stages - planning, implementation.
Correct Answer False
Your Answer False


True/False
Question Organisations should pay for the value of the job but not for the value of the person.
Correct Answer False
Your Answer True


Multiple Choice Multiple Answer
Question Experience has shown HRD audit has tremendous impact on business in areas like:
Correct Answer strategic Planning , role clarity , Streamlining practices
Your Answer strategic Planning , role clarity , Streamlining practices


Multiple Choice Multiple Answer
Question In order to attain the support of Line Managers many organisations have formulated Training Committees or Management Development Committee, membership consists of -
Correct Answer Mostly of Line Managers , The Chief Executive or a very senior managers take up the role of Chairman , Training Managers is the member-Secretary in such committee.
Your Answer Supervisory staff for their effective participation in management. , Mostly of Line Managers , The Chief Executive or a very senior managers take up the role of Chairman


Multiple Choice Multiple Answer
Question Succession planning is done in three time frames, those are-
Correct Answer Immediate , Intermediate , Long range
Your Answer Immediate , Intermediate , Long range

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Posted in: Human Resource Management (Set-V)

Management Accounting - 10

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited.
Correct Answer True
Your Answer False

Multiple Choice Single Answer
Question Compute fixed overheads calendar variance when fixed overhead volume variance is Rs.250/- (Favourable); fixed overheads efficiency variance is Rs.2,150/- (Adverse) and fixed overheads capacity variance is Rs.800/-(Favourable).
Correct Answer Rs.1,600/- (Favourable)
Your Answer Rs.1,100/- (Favourable)

Select The Blank
Question The process of recording the business transactions in a defined set of records is referred to as ________.
Correct Answer Balance sheet
Your Answer Balance sheet

True/False
Question In the ledger account only credit entries relating to a particular account are posted.
Correct Answer False
Your Answer False

True/False
Question Error of commission refer to a situation where a transaction is not recorded in the books of account.
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question The selection of the supplier may depend upon the following aspects:
Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier
Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier

Multiple Choice Single Answer
Question Which system involves adoption of same costing principles, practices and procedures by the individual firms of an industry ?
Correct Answer Uniform costing
Your Answer Uniform costing

True/False
Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices.
Correct Answer True
Your Answer False

True/False
Question Idle capacity and idle time mean one and the same thing.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question Purchased goods worth Rs.6,450/- on 10th March, 2004. However the goods were delivered directly to the plant situated at Nagar and hence this transaction was not recorded in the purchase book, which is maintained at the corporate office. Analyse the impact of this transaction.
Correct Answer The gross profit will increase by Rs.6,450/-
Your Answer The gross profit will increase by Rs.6,450/-

Select The Blank
Question Payment by ________ method lowers the cost of production through their impact on fixed costs.
Correct Answer Results
Your Answer Time

Multiple Choice Single Answer
Question The overheads of a machine shop X should be apportioned using which of the following basis?
Correct Answer Machine hours
Your Answer Direct labour cost

Multiple Choice Multiple Answer
Question Features of convention of conservation are . . .
Correct Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realised , Applicable to valuation of current assets
Your Answer Anticipates all future losses and expenses , Applicable to valuation of current assets , Applicable to valuation of non-current asset

Multiple Choice Multiple Answer
Question Merits of break even point analysis are as follows:
Correct Answer Useful diagnostic tool. , Used for analysing the risk implication of alternative actions. , Used to graphically represent complicated data.
Your Answer Useful diagnostic tool. , Used for analysing the risk implication of alternative actions. , Useful in the long run.

True/False
Question Narration must be mentioned in the ledger.
Correct Answer False
Your Answer True

True/False
Question The actual hours taken by the labour are compared with the standard hours allowed for output to find out the labour yield variance.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question The features of multiplicity of key factors are as follows :
Correct Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique
Your Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique

Multiple Choice Single Answer
Question Included in the trial balance is the sales promotion suspense account with a debit balance of Rs.6,300/-. It is given that this balance should be written off. Calculate its impact on profit of the company.
Correct Answer The net profit will decrease by Rs.6,300/-
Your Answer The gross profit will decrease by Rs.6,300/-

Multiple Choice Multiple Answer
Question Items credited to Profit & Loss Account are…
Correct Answer Gross profit , Commission received , Interested received
Your Answer Gross profit , Commission received , Interested received

Multiple Choice Multiple Answer
Question The production budget may be prepared in terms of :
Correct Answer Units produced , Production cost , Material cost, labour cost and overheads
Your Answer Units produced , Production cost , Material cost, selling cost and overheads

Multiple Choice Multiple Answer
Question If you are required to enforce uniform costing system in your industry, how would you proceed ?
Correct Answer Collecting data from all units of your industry , Ensuring that the data collected is complete and correct , Maintaining secrecy of the data collected
Your Answer Collecting data from all units of your industry , Ensuring that the data collected is complete and correct , Maintaining secrecy of the data collected

Select The Blank
Question Goods returned to the suppliers from whom it was ________d is recorded in thePurchasereturn register.
Correct Answer Purchase
Your Answer Purchase

Select The Blank
Question Profit volume ratio is also known as ________.
Correct Answer Contribution to sales ratio
Your Answer Sales to contribution ratio

True/False
Question Standard costing is always accompanied by a system of budgeting but budgetary control may be operated in business where standard costing is impracticable.
Correct Answer True
Your Answer True

Select The Blank
Question Crane expenses should be apportioned on the basis of ________.
Correct Answer Number of hours crane worked in the department
Your Answer Number of hours crane worked in the department

Select The Blank
Question Marginal costing is also known as ________.
Correct Answer Variable costing
Your Answer Variable costing

Multiple Choice Multiple Answer
Question Select the examples of functional budgets:
Correct Answer Sales budget , Production budget , Research and development budget
Your Answer Sales budget , Production budget , Research and development budget

Multiple Choice Single Answer
Question A firm has purchased a plant to manufacture a new product, the cost data for which is given below : Estimated annual sales 24,000 units. Estimated costs : Materials Rs.4/- per unit; labour Re.0.60 per unit; overheads Rs.24,000/- per year; administrative expenses Rs.28,800/- per year and selling expenses are 15% of sales; Calculate the selling price per unit if profit per unit is Rs.1.02.
Correct Answer Rs.9.20/-
Your Answer Rs.7.74/-

Multiple Choice Single Answer
Question A worker 12 hours on a scheme of payment by results. His day rate is Rs.150/- an hour, the material cost of the product is Rs.600/- and the overheads are recovered at 15% of the total direct wages. Calculate the factory cost of the product under the piece rate work plan.
Correct Answer Rs.2,670/-
Your Answer Rs.2,850/-

Match The Following
Question Correct Answer Your Answer

Change in profit/ Change in activity level Profit volume ratio Profit volume ratio

Change in total cost/ Change in activity level Variable cost per unit Total contribution

Total sales X Profit volume ratio Total contribution Variable cost per unit

Selling price ( Actual sales - Break even sales) Margin of safety Margin of safety


Select The Blank
Question Preparation of direct material ________ budget is the responsibility of the Purchase manager.
Correct Answer Purchase
Your Answer Purchase

True/False
Question Uniform costing may lead to monopolistic conditions within the industry, prices may be raised and customers may suffer.
Correct Answer True
Your Answer False

Select The Blank
Question ________ system of wage payment is a combination of Halsey system and Gantt system.
Correct Answer Diemer
Your Answer Barth premium

Select The Blank
Question The system which provides an opportunity to the small units to take advantage of the research work taken by the large scale units of the same industry is known as ________ system.
Correct Answer Uniform costing
Your Answer Uniform costing

Multiple Choice Single Answer
Question The credit side of the sales book was overcast by Rs.2,000/-. As a result of this rectification, what of the given impacts is likely to happen?
Correct Answer The liability side of the balance sheet will increase by Rs.2,000/-
Your Answer The liability side of the balance sheet will increase by Rs.2,000/-

Select The Blank
Question The method of overhead apportionment which considers both the material cost as well as the labour cost, is known as ________ method.
Correct Answer Prime cost percentage rate
Your Answer Prime cost percentage rate

Multiple Choice Multiple Answer
Question The components of the selling and distribution cost budget are :
Correct Answer Distribution expenses , Publicity expenditure , Salary of sales-office workers
Your Answer Distribution expenses , Publicity expenditure , Salary of shop-floor workers

Match The Following
Question Correct Answer Your Answer

Normal Standards Anticipated to be achieved in future Once established can never be altered

Basic Standards Established for a longer period of time Anticipated to be achieved in the budget period

Current Standards Established for a shorter period of time Anticipated to be unachievable in future

Expected Standards Anticipated to be achieved in the budget period Established for a shorter period of time


Multiple Choice Single Answer
Question The cost that indicates historical cost, which is incurred in past, is known as
Correct Answer Sunk cost
Your Answer Sunk cost

Multiple Choice Multiple Answer
Question Which of the following budgets may be termed as a long term budget?
Correct Answer Capital expenditure budget , Research and Development expenditure budget , Budget of a transportation company
Your Answer Capital expenditure budget , Research and Development expenditure budget , Budget of a transportation company

Multiple Choice Single Answer
Question If a predetermined overhead rate is not employed an the volume of production is increased over the level planned, the cost per unit would be expected to :
Correct Answer Decrease for fixed costs and remain unchanged for variable costs
Your Answer Remain unchanged for fixed costs and increase for variable costs

Multiple Choice Single Answer
Question If the overhead expenditure to be absorbed is the foreman's salary, the most appropriate basis for absorption would be :
Correct Answer Direct labour hours
Your Answer Weight of material

Multiple Choice Single Answer
Question Which system provides an opportunity to companies to adopt the one best method of cost accounting system known to the industry ?
Correct Answer Uniform costing
Your Answer Job costing

Select The Blank
Question Loans which are borrowed from financial institutions are to be paid off in 8 years, should be disclosed as ________ in the balance sheet.
Correct Answer Long term liabilities
Your Answer Current liabilities

True/False
Question The bin card and stores ledger, being independent records, comparison of these two records should be avoided.
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question Accounting is the art where transactions are …
Correct Answer Summarized , Classified , Recorded
Your Answer Summarized , Classified , Recorded

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Posted in: Management Accounting (Set IV)