Using "lower of cost and net realisable value (Market Value)" for the purpose of inventory valuation is the implementation of which of the following concepts?
A. The going concern concept
B. The separate entity concept
C. The prudence concept
D. Matching concept
Select an option to see the answer and solution.
The participants who take advantage of different exchange rates in different markets are
A. Speculators
B. Arbitrageurs
C. Hedgers
D. Investors
Select an option to see the answer and solution.
In certainty-equivalent approach, risk adjusted cash flows are discounted at
A. Accounting Rate of Return
B. Internal Rate of Return
C. Hurdle Rate
D. Risk-free Rate
Select an option to see the answer and solution.
Which of the following are the important features of option contracts?
(I) Buyers of option have limited liability.
(II) Options have high degree of risk to option-writers.
(III) Options are exercisable only by buyers of option.
(IV) Buyers of option have all rights which are available to equity shareholders of the concerned companies.
A. (I), (II), (III)
B. (I), (II), (III), (IV)
C. (I), (II), (IV)
D. (I), (III), (IV)
Select an option to see the answer and solution.
Match
List-I with
List-II
List-I
List-II
a. Net income approach
1. Inventory management
b. Gordan model
2. Capital budgeting
c. Internal rate of return
3. Capital structure theory
d. Reorder level
4. Dividend theory
A. a-2, b-3, c-4, d-1
B. a-3, b-4, c-2, d-1
C. a-3, b-4, c-1, d-2
D. a-2, b-1, c-4, d-3
Select an option to see the answer and solution.
Investment of X company profit in shares of other company PQR Pvt. Ltd are recorded in . . . . . . . .
A. Asset side of Balance sheet
B. Liability side of Balance sheet
C. Profit & Loss a/c
D. Not recorded in Balance sheet
Select an option to see the answer and solution.
Rules of action or conduct adopted by the accountants universally while recording accounting transaction:
A. Accounting convention
B. Accounting concepts
C. Accounting principles
D. None of these
Select an option to see the answer and solution.
The chairman of SEBI is appointed by
A. The central government
B. President of India
C. Parliament
D. State Government
Select an option to see the answer and solution.
Read the under mentioned quotation and answer: 'stock exchange is the barometer of country's economy.'
The author of the quotation is:
A. Marshall
B. Robbins
C. Bismark
D. J. R. D. TaTa
Select an option to see the answer and solution.
What is a stapler?
A. It is a principal food
B. It is a spare wheel of a car
C. It is s wire stitching machine
D. It is a punching machine
Select an option to see the answer and solution.
Financial Instruments which are issued with detachable warrants and are redeemable after certain period is known as:
A. Deep Discount Bonds
B. Secured Premium Notes
C. Bunny Bonds
D. Junk Bonds
Select an option to see the answer and solution.
The SEBI, which was accorded the statutory status in the year 1992, acts as the regulator of
A. The stock exchanges which came in to being in and after
B. The stock exchanges which are known as Over the Counter Exchange of India
C. All the stock exchanges of the country irrespective of their dates of coming in to being
D. None of the these
Select an option to see the answer and solution.
Which of the following statements about differences between financial and managerial accounting is incorrect?
A. Managerial accounting information is prepared primarily for external parties such as stockholders and creditors; financial accounting is directed at internal users
B. Financial accounting is aggregated; managerial accounting is focused on products and departments
C. Managerial accounting pertains to both past and future items; financial accounting focuses primarily on past transactions and events
D. Financial accounting is based on generally accepted accounting practices; managerial accounting faces no similar constraining factors
Select an option to see the answer and solution.
The certificate which evidences an unsecured corporate debt of short-term maturity, is known as:
A. Certificate of Deposit
B. Short-term loan certificate
C. Treasury Bill
D. Commercial paper
Select an option to see the answer and solution.
Derivative instrument is:
A. Swaps
B. Equity
C. Bond
D. Share
Select an option to see the answer and solution.
Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in retained earnings?
A. Net loss
B. Net income
C. Dividend
D. Investment by shareholder
Select an option to see the answer and solution.
The primary function of an office is:
A. Making, using and preserving records
B. Remunerating personnel
C. Carrying out the Management policies
D. Safeguarding of company's assets
Select an option to see the answer and solution.
In case of a debt becoming bad, the amount should be credited to:
A. Debtors Accounts
B. Bad debts a/c
C. Sales a/c
D. None of these
Select an option to see the answer and solution.
Which of the following variables is not known in Internal Rate of Return method of capital budgeting?
A. Amount of cash inflows
B. Life of the project
C. Amount of cash outflows
D. Discount rate
Select an option to see the answer and solution.
Match
List-I with
List-II and select the correct answer using the option given below the lists:
List-I (Institution)
List-II (Year of Establishment)
a. Industrial Finance Corporation of India
1. 1971
b. Industrial Credit and Investment Corporation of India
2. 1990
c. Small Industrial Development Bank of India
3. 1995
d. Industrial Reconstruction Bank of India
4. 1948
A. a-4, b-3, c-2, d-1
B. a-1, b-2, c-3, d-4
C. a-3, b-1, c-4, d-2
D. a-2, b-4, c-1, d-3
Select an option to see the answer and solution.