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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