Strategic Finance - 24

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

 

Match The Following

Question Correct Answer Your Answer

AS 21 Consolidated financial statements Consolidated financial statements

AS 4 Contingencies & events occurring after the balance sheet date Contingencies & events occurring after the balance sheet date

AS 13 Accounting for investments Accounting for investments

AS 23 Accounting for investments in associates in consolidated financial statements Accounting for investments in associates in consolidated financial statements

 

Select The Blank

Question There is a ________ relationship between the number of employees & the use of

operating supplies.

Correct Answer Natural

Your Answer Natural

 

Multiple Choice Multiple Answer

Question 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)

Your 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)

 

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 , Stimulates sales

 

Multiple Choice Single Answer

Question As per Pecking order theory, which is the costliest means of funding :-

Correct Answer Equity Shares

Your Answer Equity Shares

 

Multiple Choice Single Answer

Question Free Reserves is a component of :-

Correct Answer Equity

Your Answer Equity

 

Select The Blank

Question ________ are those operating assets that are employed by a segment in its

operating activities.

Correct Answer Segment assets

Your Answer Segment assets

 

Multiple Choice Multiple Answer

Question The overhead expenses include :-

Correct Answer Utilities , Maintenance , Security

Your Answer Utilities , Maintenance , Security

 

Multiple Choice Multiple Answer

Question Examples of accrued expenses are :-

Correct Answer Wages , Income tax , Property tax

Your Answer Wages , Income tax , Property tax

 

Multiple Choice Single Answer

Question One of the bases for determining the residual value of similar assets is :-

Correct Answer Realizable value

Your Answer Realizable value

 

Select The Blank

Question The number of bidding centers shall not be less than ________ for buy back through

book building.

Correct Answer 30

Your Answer 30

 

Multiple Choice Single Answer

Question Conservative policy for determining the requirements of current assets is also known

as :-

Correct Answer Flexible policy

Your Answer Flexible policy

 

True/False

Question Management of working capital refers to the management of total assets and

liabilities of a company.

Correct Answer False

Your Answer False

 

Multiple Choice Single Answer

Question usually the `controlling block' tends to be between :-

Correct Answer 20 & 40 percent

Your Answer 20 & 40 percent

 

Multiple Choice Single Answer

Question The difference between current assets & current liabilities is known as :-

Correct Answer Net working capital

Your Answer Net working capital

 

Select The Blank

Question Conglomerate mergers are also called ________.

Correct Answer Concentric mergers

Your Answer Concentric mergers

 

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 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

Your Answer Non trading assets

 

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

 

True/False

Question The scope of the data required relates to the scope of the activity model & processes

under review.

Correct Answer True

Your Answer True

 

Multiple Choice Single Answer

Question Investment decisions are mainly concerned with :-

Correct Answer Assets

Your Answer Assets

 

Match The Following

Question Correct Answer Your Answer

Unsecured loans Form of debt not backed by the

pledge of specific assets

Form of debt not backed by the

pledge of specific assets

Line of credit Does not constitute any legal

commitments on the part of the

bank

Does not constitute any legal

commitments on the part of the

bank

Revolving credit agreements While the commitment is in force

the bank must extend credit

whenever the borrower wishes to

borrow

While the commitment is in force

the bank must extend credit

whenever the borrower wishes to

borrow

Transaction loan The cash flow ability of the

borrower to pay the loan is

usually of paramount importance

The cash flow ability of the

borrower to pay the loan is usually

of paramount importance

 

Multiple Choice Single Answer

Question Short term sources of funds include :-

Correct Answer Current Liabilities

Your Answer Reserves

 

Multiple Choice Single Answer

Question Profitability of a company depends upon :-

Correct Answer Cost of capital

Your Answer Earning per share

 

True/False

Question DCF is not a method used to calculate market value of a firm.

Correct Answer False

Your Answer False

 

Multiple Choice Multiple Answer

Question Shortcomings of accounting numbers consist of the following :-

Correct Answer Firms use different kind of accounting methods , Business risk and financial risk do

not have any influence on accounting numbers

Your Answer Dividend policy has lot of influence on accounting numbers , Business risk and

financial risk do not have any influence on accounting numbers

 

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

 

True/False

Question Planning helps an acquiring firm to identify the units it should drop & it should add.

Correct Answer True

Your Answer True

 

Select The Blank

Question Non value added activities helps ________.

Correct Answer To analyse the activities more carefully

Your Answer To take a better decision

 

True/False

Question Usually only a single method is used for valuation of shares.

Correct Answer False

Your Answer False

 

Select The Blank

Question In the reproduction value method of valuation, the value of assets is taken to be on

the basis of ________

Correct Answer Replacement cost

Your Answer Replacement cost

 

Multiple Choice Multiple Answer

Question The major conditions to be fulfilled for buyback of shares as per the legal provisions

include :-

Correct Answer Articles of association should authorize buyback of shares , The shares which are

sought to be bought back should be fully paid up , After the buy back the ratio of debt

to total capital and free reserves should not be more than 2 : 1

Your Answer Articles of association should authorize buyback of shares , The shares which are

sought to be bought back should be fully paid up , After the buy back the ratio of debt

to total capital and free reserves should not be more than 2 : 1

 

Multiple Choice Single Answer

Question The Public announcement of share buy back has to be made at least :-

Correct Answer 7 Days prior to the commencement of buy back

Your Answer 7 Days prior to the commencement of buy back

 

Select The Blank

Question Combination of 2 or more companies into existing company is called ________.

Correct Answer Absorption

Your Answer Absorption

 

Select The Blank

Question ________ is not a example of segment liability.

Correct Answer Goodwill

Your Answer Accrued liabilities

 

Multiple Choice Multiple Answer

Question The characteristics of working capital are :-

Correct Answer It is continually required for a going concern , Quantum of working capital fluctuates

depending on the level of activity , It is impacted by numerous transactions on a

continuous basis

Your Answer It is continually required for a going concern , Quantum of working capital fluctuates

depending on the level of activity , It is impacted by numerous transactions on a

continuous basis

 

True/False

Question The accounting records serve as the major source of cost data.

Correct Answer True

Your Answer True

 

Select The Blank

Question AS 23 - Accounting for investments in associates in consolidated financial

statements comes into effect in respect of accounting periods commencing on or

after ________.

Correct Answer 01.04.2002

Your Answer 01.04.2002

 

True/False

Question The activity model is normally created by an activity Accountant.

Correct Answer False

Your Answer False

 

True/False

Question Organisational changes are similar to mission changes.

Correct Answer True

Your Answer True

 

Multiple Choice Single Answer

Question Equity includes :-

Correct Answer Development Rebate Reserve

Your Answer Development Rebate Reserve

 

Select The Blank

Question A geographical segment cannot be ________.

Correct Answer Countries in different zones

Your Answer Countries in different zones

 

Multiple Choice Single Answer

Question The Management of the Company may enter into a negotiated purchase, which is

referred to as :-

Correct Answer Greenfield

Your Answer Greenfield

 

Multiple Choice Single Answer

Question 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

Your Answer 5 % of the voting capital of the target company

 

Multiple Choice Multiple Answer

Question Significant influence is the power to :-

Correct Answer Participate in the financial decisions , Participate in the operating policy decisions

Your Answer Participate in the financial decisions , Participate in the operating policy decisions

 

Multiple Choice Multiple Answer

Question 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

Your Answer Not intended to be occupied substantially for use by investing enterprise , Not

intended to be in the operations of the investing enterprise

 

Multiple Choice Single Answer

Question The following analysis is more targeted on similar activities or firms that exist in

parallel within the activity model or process flow to ensure that they are being done

the same best way :-

Correct Answer Comparative analysis

Your Answer Comparative analysis

Read more »

Posted in: Strategic Finance (Set X)

Object Oriented Analysis and Design - 17

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

 

Multiple Choice Single Answer

Question:A process of identifying, assessing , evaluating risk exposure, prioritizing the

risk incidences, and developing risk monitoring, management and mitigation plan is :-

Correct Answer: Project Risk Management

Your Answer:Project Risk Management

 

Multiple Choice Single Answer

Question:A Modification of the Software is done to accommodate the changes forced by

the external environment is

Correct Answer: Adaptive Maintenance

Your Answer:Corrective Maintenance

 

Multiple Choice Multiple Answer

Question:A documentation is tested through :-

Correct Answer: Technical Review , Actual Operational Review

Your Answer:Technical Review , Actual Operational Review , Code

 

Multiple Choice Single Answer

Question:In Interface Stage of SSAD phase the focus is on:-

Correct Answer: User Comfort

Your Answer:Design of the Output Formats

 

Multiple Choice Single Answer

Question:A type of testing which verifies that all the system elements are meshed

properly and that overall system function / performance is achieved is:-

Correct Answer: System testing

Your Answer:Component Testing

 

Select The Blank

Question:A ________ deals with identification and assessment of potential hazards of

software failing and its impact on the systems.

Correct Answer: Software Safety

Your Answer:Software Testing

 

True/False

Question:The Water Fall Model is used where the risk factor is almost nil

Correct Answer: True

Your Answer:True

 

Multiple Choice Single Answer

Question:A System in which next state of the system can be predicted without doubt is :-

Correct Answer: Deterministic

Your Answer:Open System

 

True/False

Question:Spiral model itself is a model which is base for other software development

models

Correct Answer: False

Your Answer:True

 

True/False

Question:System testing checks the abnormality in the software system.

Correct Answer: False

Your Answer:True

 

True/False

Question:ISO 9001 is used to develop quality assurance systems.

Correct Answer: True

Your Answer:True

 

Multiple Choice Single Answer

Question:A type of testing where the focus is on design and development of the software

architecture is termed as:-

Correct Answer: Integration Testing

Your Answer:Module testing

 

True/False

Question:The results of the test case is recorded in the test specification document.

Correct Answer: True

Your Answer:True

 

Multiple Choice Single Answer

Question:A Principle in which the Functional Cohesion between the sub system is

maintained:-

Correct Answer: Decomposition

Your Answer:Decoupling

 

Multiple Choice Multiple Answer

Question:SQA efforts most primarily assures:-

Correct Answer: Software Quality , Software Reliability , Software Availability

Your Answer:Software Quality , Software Reliability , Software Availability

 

Multiple Choice Multiple Answer

Question:The Customer Requirements could be analyzed by:-

Correct Answer: Interviewing , Questionnaire , Meeting with Key Users

Your Answer:Questionnaire , Case Study , Meeting with Key Users

 

Multiple Choice Single Answer

Question:The extent the software meets the customer quality goals and expectations is

termed as :-

Correct Answer: Correctness

Your Answer:Reliability

 

Multiple Choice Multiple Answer

Question:The Factors enabling easy change are :-

Correct Answer: Maintainability , Flexibility , Testability

Your Answer:Maintainability , Flexibility , Reusability

 

Match The Following

Question: Correct Answer: Your Answer:

Development of the Software Software Programs Software Engineering Layers

Corrective Maintenance Analysis Process, Tools & Methods Software Engineering

Layers Software Modules

Requirement Specifications Definition Phase Software Programs

 

Select The Blank

Question:Cohesion and Coupling is the criteria for measuring ________.

Correct Answer: Functional Dependency

Your Answer:Functional Dependency

 

Select The Blank

Question:A collection of programs written to service other set of programs and its

functions is called as ________

Correct Answer: System Software

Your Answer:Integrated Software

 

Select The Blank

Question:________ is a System Engineering approach that is used to define architecture

that enables a business to use Information Effectively.

Correct Answer: Business Processing Engineering

Your Answer:Business Process Models

 

Multiple Choice Single Answer

Question:The Application of a systematic, disciplined, quantifiable approach to the

development, operation and maintenance of the software is termed as

Correct Answer: Software Engineering

Your Answer:Software Maintenance

 

Multiple Choice Multiple Answer

Question:RMMM Plan deals with :-

Correct Answer: Mitigation , Monitoring , Management

Your Answer:Mitigation , Monitoring , Management

 

Select The Blank

Question:In ________Model the risk of the Software development is almost Nil

Correct Answer: Water Fall

Your Answer:Water Fall

 

True/False

Question:Stress Testing is a part of Integration testing.

Correct Answer: False

Your Answer:False

 

Multiple Choice Multiple Answer

Question:Black Box testing techniques are:-

Correct Answer: Graph Based Testing Methods , Equivalence Portioning , Boundary

Value Analysis

Your Answer:Graph Based Testing Methods , Stress Testing , Boundary Value Analysis

 

Multiple Choice Multiple Answer

Question:The types of Software are

Correct Answer: Business Software , Embedded Software , System Software

Your Answer:Business Software , Embedded Software , System Software

 

Multiple Choice Multiple Answer

Question:Following are the data models namely:-

Correct Answer: Hierarchical Model , Network Model , Relational Model

Your Answer:Hierarchical Model , Network Model , Relational Model

 

Select The Blank

Question:________ is achieved by carving out a module that is responsible for any

unique function and which does not need to interact with other parts of the system.

Correct Answer: Functional Dependency

Your Answer:Functional Dependency

 

Multiple Choice Multiple Answer

Question:The stages of the Iterative Models are

Correct Answer: Requirement Analysis , System Design , Development Coding & Unit

Testing

Your Answer:Requirement Analysis , System Design , Development Coding & Unit

Testing

 

Multiple Choice Multiple Answer

Question:In a Software Risk Management Risk drivers are :-

Correct Answer: Technology , People , Requirements

Your Answer:Technology , People , Requirements

 

Select The Blank

Question:________ tests confirms that the needs and requirements are fulfilled on the

deployment platform.

Correct Answer: Beta

Your Answer:Stress

 

True/False

Question:The major resources in the project is people and funds.

Correct Answer: False

Your Answer:False

 

Match The Following

Question: Correct Answer: Your Answer:

Entity Object which is Uniquely Distinguished Object which is Uniquely Distinguished

Hierarchical Model Tree Structure Tree Structure

Network Model Network Communications Network Communications

Relational Model Data are Linked Data are Linked

 

Select The Blank

Question:The company should establish a ________ and maintain a documented quality

system as a means of ensuring that it conforms to the specified requirements of ISO.

Correct Answer: Quality System Procedure

Your Answer:Quality Management System

 

Multiple Choice Single Answer

Question:Who Defines SE as the application of a Systematic, disciplined and

quantifiable approach to the development and maintenance of a Software

Correct Answer: IEEE

Your Answer:ISO - 9001

 

True/False

Question:People, Procedures and Parameters are the Drivers of the Technology.

Correct Answer: False

Your Answer:True

 

True/False

Question:Six Sigma is one of the most widely used strategy for statistical quality

assurance in an industry.

Correct Answer: True

Your Answer:False

 

Select The Blank

Question:A ________ has to be performed regularly throughout the achievement life

cycle.

Correct Answer: Risk Management

Your Answer:Risk Management

 

Multiple Choice Multiple Answer

Question:Work Break Down Structure can also be traced back to ?

Correct Answer: System Requirements Specifications , Requirement Definition &

Description

Your Answer:System Requirements Specifications , Statement of Work , Planning

 

Multiple Choice Single Answer

Question:A type of testing where the focus is user and user Behavior is:-

Correct Answer: Usage based testing

Your Answer:Usage based testing

 

True/False

Question:A Software solution is evolved in parts as in an incremental fashion in

incremental model

Correct Answer: True

Your Answer:True

 

Multiple Choice Multiple Answer

Question:System Testing Techniques are :-

Correct Answer: Alpha Test , Beta Test

Your Answer:Alpha Test , Beta Test , Stress Testing

 

Select The Blank

Question:________ testing confirms that the needs and requirements are fulfilled in the

development environment.

Correct Answer: Alpha

Your Answer:Beta

 

Multiple Choice Single Answer

Question:In Design Phase at data and data Structure stage the focus is on:-

Correct Answer: Entities and Attributes

Your Answer:Entities and Attributes

 

Multiple Choice Single Answer

Question:The Extent of effort to locate the error and fix it is :-

Correct Answer: Maintainability

Your Answer:Flexibility

 

Multiple Choice Single Answer

Question:A process of identifying, assessing , evaluating risk exposure, prioritizing the

risk incidences, and developing risk monitoring, management and mitigation plan is :-

Correct Answer: Project Risk Management

Your Answer:Project Risk Management

 

Multiple Choice Multiple Answer

Question:RMMM Plan deals with :-

Correct Answer: Mitigation , Monitoring , Management

Your Answer:Mitigation , Monitoring , Management

 

Select The Blank

Question:In ________Model the risk of the Software development is almost Nil

Correct Answer: Water Fall

Your Answer:Water Fall

 

True/False

Question:Stress Testing is a part of Integration testing.

Correct Answer: False

Your Answer:False

 

Multiple Choice Multiple Answer

Question:Black Box testing techniques are:-

Correct Answer: Graph Based Testing Methods , Equivalence Portioning , Boundary

Value Analysis

Your Answer:Graph Based Testing Methods , Stress Testing , Boundary Value Analysis

 

Multiple Choice Multiple Answer

Question:The types of Software are

Correct Answer: Business Software , Embedded Software , System Software

Your Answer:Business Software , Embedded Software , System Software

 

Multiple Choice Multiple Answer

Question:Following are the data models namely:-

Correct Answer: Hierarchical Model , Network Model , Relational Model

Your Answer:Hierarchical Model , Network Model , Relational Model

 

Select The Blank

Question:________ is achieved by carving out a module that is responsible for any

unique function and which does not need to interact with other parts of the system.

Correct Answer: Functional Dependency

Your Answer:Functional Dependency

 

Multiple Choice Multiple Answer

Question:The stages of the Iterative Models are

Correct Answer: Requirement Analysis , System Design , Development Coding & Unit

Testing

Your Answer:Requirement Analysis , System Design , Development Coding & Unit

Testing

 

Multiple Choice Multiple Answer

Question:In a Software Risk Management Risk drivers are :-

Correct Answer: Technology , People , Requirements

Your Answer:Technology , People , Requirements

 

Select The Blank

Question:________ tests confirms that the needs and requirements are fulfilled on the

deployment platform.

Correct Answer: Beta

Your Answer:Stress

 

True/False

Question:The major resources in the project is people and funds.

Correct Answer: False

Your Answer:False

 

Match The Following

Question:Correct Answer: Your Answer:

Entity Object which is Uniquely Distinguished Object which is Uniquely Distinguished

Hierarchical Model Tree Structure Tree Structure

Network Model Network Communications Network Communications

Relational Model Data are Linked Data are Linked

 

Select The Blank

Question:The company should establish a ________ and maintain a documented quality

system as a means of ensuring that it conforms to the specified requirements of ISO.

Correct Answer: Quality System Procedure

Read more »

Posted in: Object Oriented Analysis and Design(Set-6)