LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question
Total risk reduces if operations of combining firms are ________.
Correct Answer
Negatively correlated
Your Answer
Negatively correlated
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
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 refine the costs , To document the costs
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
The amount to be invested by any single investor in a commercial paper shall not be less than Rs. ________.
Correct Answer
25 lacs
Your Answer
25 lacs
True/False
Question
A change in the method of depreciation is treated as a change in an accounting policy and is disclosed accordingly.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
The development aspect of training in firms focus on :-
Correct Answer
Promotion to higher job levels
Your Answer
Promotion to higher job levels
Multiple Choice Multiple Answer
Question
The main assumptions for stock repurchase models are as follows :-
Correct Answer
The market is efficient , There is perfect competition in the securities market
Your Answer
The market is efficient , There is perfect competition in the securities market
Multiple Choice Single Answer
Question
AS 17 is mandatory for all commercial, industrial & business reporting enterprises whose turnover for the accounting period :-
Correct Answer
Exceeds 50 crores
Your Answer
Exceeds 50 crores
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
Payables
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 Single Answer
Question
When a change in the method of depreciation is made :-
Correct Answer
Depreciation is recalculated in accordance with the new method
Your Answer
Depreciation is recalculated in accordance with the new method
Multiple Choice Multiple Answer
Question
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
Your Answer
Have to sign a note , Pledge collateral , Adhere to strict payment schedule
Select The Blank
Question
Depreciation is ________ of an asset.
Correct Answer
Loss of value
Your Answer
Loss of value
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 Single Answer
Question
If a firm opts for restrictive policy then the investments in current assets is :-
Correct Answer
Low
Your Answer
Low
Multiple Choice Single Answer
Question
When the seller asks for the payment before making 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
An activity model is a tool to assist in understanding & defining the organisation.
Correct Answer
True
Your Answer
True
True/False
Question
It is possible to place a single value for the acquired firm.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
In the disclosures in financial statements, there are significant restrictions on :-
Correct Answer
The right of ownership , Realisability of investments , The remittance of income & proceeds of disposal
Your Answer
The right of ownership , Realisability of investments , The remittance of income & proceeds of disposal
Multiple Choice Single Answer
Question
The depreciable assets are assets which are expected to be used :-
Correct Answer
During more than 1 accounting period
Your Answer
During more than 1 accounting period
True/False
Question
Short term financing is meant for funding working capital of a company.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
The existence of significant influence by an investor is usually evidenced in the following ways :-
Correct Answer
Participation in policy making processes , Material transactions between the investor & the investee , Interchange of managerial personnel
Your Answer
Participation in policy making processes , Material transactions between the investor & the investee , Interchange of managerial personnel
Multiple Choice Multiple Answer
Question
The important steps involved in the analysis of mergers & acquisitions are:-
Correct Answer
Planning , Searching & screening , Financial evaluation
Your Answer
Planning , Searching & screening , Financial evaluation
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 Multiple Answer
Question
The financial managers of a company consume a great deal of their time in activities like :-
Correct Answer
Monitoring the investment in inventories , Negotiating favourable credit terms , Administrating Accounts receivables
Your Answer
Monitoring the investment in inventories , Negotiating favourable credit terms , Administrating Accounts receivables
True/False
Question
Dividends increase the current returns for shareholders.
Correct Answer
True
Your Answer
True
True/False
Question
Book value is based on the balance sheet value of owner's equity.
Correct Answer
True
Your Answer
True
Select The Blank
Question
the commercial paper may be issued in the multiples of ________.
Correct Answer
5 lakhs
Your Answer
5 lakhs
Select The Blank
Question
In presenting the reconciliation segment result should be reconciled to ________.
Correct Answer
Enterprise net profit or loss
Your Answer
Enterprise revenue
Select The Blank
Question
Another meaning of bear hug is ________.
Correct Answer
Hostile takeover
Your Answer
Friendly takeover
Multiple Choice Single Answer
Question
Funds borrowed for a period of 1 year or less is called :-
Correct Answer
Short term finance
Your Answer
Short term finance
Multiple Choice Multiple Answer
Question
Financial statements classify the following into separate categories :-
Correct Answer
Fixed assets , Investments , Current assets
Your Answer
Fixed assets , Investments , Current assets
Multiple Choice Single Answer
Question
Any addition or extension to an existing asset which retains a separate identify & is capable of being used after the existing asset is disposed of :-
Correct Answer
Is depreciated independently
Your Answer
Is depreciated independently
Multiple Choice Single Answer
Question
In value of assets approach the value of which of the following should be deducted to calculate the net assets available to the equity shareholders :-
Correct Answer
Outstanding preference shares
Your Answer
Outstanding preference shares
Multiple Choice Single Answer
Question
What is a very important factor in any kind of merger?
Correct Answer
Exchange ratio
Your Answer
Exchange ratio
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
Baumul`s Model is similar to EOQ model in inventory management.
Correct Answer
True
Your Answer
True
True/False
Question
Sometimes the mechanisms may appear to be inputs for an activity.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
Accrued expenses represent :-
Correct Answer
Costless financing , An interest free source of financing
Your Answer
Costless financing , An interest free source of financing
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
Match The Following
Question
Correct Answer
Your Answer
Terminal warehouse receipt
Inventory is stored with a public or terminal warehousing company
Inventory is stored with a public or terminal warehousing company
Floating lien
Loose arrangement as the lender may find it difficult to police
Loose arrangement as the lender may find it difficult to police
Chattel mortgage
Well suited for financial good inventories of capital goods
Well suited for financial good inventories of capital goods
Trust receipt
Specifically identified by serial number or other means
Specifically identified by serial number or other means
Multiple Choice Multiple Answer
Question
The different types of floats are :-
Correct Answer
Postal float , Deposit float , Bank float
Your Answer
Postal float , Deposit float , Bank float
Multiple Choice Multiple Answer
Question
If a company is following multiple accounting system, the activity accountant will have to match data across :-
Correct Answer
Codes , Time periods , Systems
Your Answer
Codes , Time periods , Systems
True/False
Question
AS 13 statement does not deal with operating or finance leases.
Correct Answer
True
Your Answer
True
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
Select The Blank
Question
Market approach is used for companies whose shares are ________ on the Stock market.
Correct Answer
Listed
Your Answer
Listed
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