MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which of the following are limitations of break-even analysis? |
| A. | Static concept |
| B. | Capital employed is taken into account. |
| C. | Limitation of non-linear behavior of costs |
| D. | Limitation of presence of perfect competition |
| Answer» B. Capital employed is taken into account. | |
| 2. |
Risk of two securities with different expected return can be compared with: |
| A. | Coefficient of variation |
| B. | Standard deviation of securities |
| C. | Variance of Securities |
| D. | None of the above |
| Answer» B. Standard deviation of securities | |
| 3. |
If a seller recovers his capital along with accumulated compensating interest not inone single lump-sum payment but in periodical equal payments, over time: |
| A. | Capital Recovery Annuity fs availed |
| B. | Present work Annuity is availed |
| C. | Sinking Fund Annuity is availed |
| D. | Sinking Fund Annuity is availed |
| Answer» B. Present work Annuity is availed | |
| 4. |
Using equation method, Break-even point is calculated as |
| A. | Sales = Variable expenses + Fixed expenses + Profit |
| B. | Sales = Variable expenses + Fixed expenses - Profit |
| C. | Sales = Variable expenses - Fixed expenses + Profit |
| D. | None of the above |
| Answer» B. Sales = Variable expenses + Fixed expenses - Profit | |
| 5. |
Risk of a Capital budgeting can be incorporated |
| A. | Adjusting the Cash flows, |
| B. | Adjusting the Discount Rate, |
| C. | Adjusting the life, |
| D. | All of the above |
| Answer» E. | |
| 6. |
Which of the following are characteristics of B.E.P? |
| A. | There is no loss and no profit to the firm. |
| B. | Total revenue is equal to total cost. |
| C. | Contribution is equal to fixed cost. |
| D. | All of the above. |
| Answer» E. | |
| 7. |
In Sensitivity Analysis, the emphasis is on assessment of sensitivity of |
| A. | Net Economic Life, |
| B. | Net Present Value, |
| C. | Both (a) and (b), |
| D. | None of (a) and (b) |
| Answer» C. Both (a) and (b), | |
| 8. |
Refer to the cash flow diagram of uniform gradient in a cash flow (in the givenfigure), the gradient is: |
| A. | Rs. 10000 per year |
| B. | Rs. 15000 per year |
| C. | Rs. 20000 per year |
| D. | Rs. 25000 per year |
| Answer» E. | |
| 9. |
Mr. X takes a loan of Rs 50,000 from HDFC Bank. The rate of interest is 10% per annum. The first installment will be paid at the end of year 5. Determine the amount of equal annual installments if Mr. X wishes to repay the amount in five installments. |
| A. | Rs 19500 |
| B. | Rs 19400 |
| C. | Rs 19310 |
| D. | None of the above |
| Answer» D. None of the above | |
| 10. |
_________ reconciles the opening cash balance with the closing cash balance of a given period on the basis of net decrease or increase in cash during that period. |
| A. | Cash Flow Statement |
| B. | Funds Flow Statement |
| C. | Both a and b |
| D. | None of the above |
| Answer» B. Funds Flow Statement | |
| 11. |
Given selling price is Rs 10 per unit, variable cost is Rs 6 per unit and fixed cost isRs 5,000. What is break-even point? |
| A. | 500 units |
| B. | 1,000 units |
| C. | 1,250 units |
| D. | None of the above |
| Answer» D. None of the above | |
| 12. |
Which of the following are assumptions for break-even analysis? |
| A. | Elements of cost cannot be divided in different groups. |
| B. | Fixed cost remains certain from zero production to full capacity. |
| C. | Behavior of different costs is linear |
| D. | Selling per price unit remains constant. |
| Answer» C. Behavior of different costs is linear | |
| 13. |
Cash flow statement is based upon _________ while Funds Flow Statement recognizes _______. |
| A. | Cash basis of accounting, accrual basis of accounting |
| B. | Accrual basis of accounting, cash basis of accounting |
| C. | Both are based on cash basis of accounting |
| D. | None of the above |
| Answer» B. Accrual basis of accounting, cash basis of accounting | |
| 14. |
If ‘P’ is principal amount, ‘i’ is the rate of interest and ‘n’ is the number of periodsin years, then the interest factor is: |
| A. | (1 + ni) |
| B. | (ni - 1) |
| C. | ni |
| D. | None of these |
| Answer» B. (ni - 1) | |
| 15. |
Value analysis is normally applied to |
| A. | New products |
| B. | Old products |
| C. | Future products |
| D. | Both (A) and (B) |
| Answer» C. Future products | |
| 16. |
When there is high inflation in the economy, how will it affect the supply of money inthe economy? |
| A. | No effect on the money supply |
| B. | Supply of money decreases |
| C. | Supply of money increases |
| D. | None of the above |
| Answer» D. None of the above | |
| 17. |
The price paid by the buyer is |
| A. | Cost value |
| B. | Use value |
| C. | Esteem value |
| D. | Exchange value |
| Answer» C. Esteem value | |
| 18. |
In Risk-Adjusted Discount Rate method, which one is adjusted? |
| A. | Cash flows, |
| B. | Life of the proposal, |
| C. | Rate of discount, |
| D. | Salvage value |
| Answer» D. Salvage value | |
| 19. |
CAPM accounts for: |
| A. | Unsystematic risk |
| B. | Systematic risk |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |
| 20. |
NPV of a proposal, as calculated by RADR real CE Approach will be: |
| A. | Same, |
| B. | Unequal, |
| C. | Both (a) and (b), |
| D. | None of (a) and (b) |
| Answer» C. Both (a) and (b), | |
| 21. |
Efficient portfolios can be defined as those portfolios which for a given level of riskprovides |
| A. | Maximum return |
| B. | Average return |
| C. | Minimum return |
| D. | None of the above |
| Answer» B. Average return | |
| 22. |
What is a stagflation? |
| A. | A situation in which the economy experiences recession. |
| B. | A situation in which the economy have inflation and recession altogether |
| C. | An economy where unemployment is high |
| D. | Both b and c |
| Answer» C. An economy where unemployment is high | |
| 23. |
There is no difference between the capital market line and security market line asboth the terms are same. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 24. |
Expected Value of Cashflow, EVCF, is: |
| A. | Certain to occur, |
| B. | Most likely Cashflows, |
| C. | Arithmetic Average Cashflow, |
| D. | Geometric Average Cashflow |
| Answer» C. Arithmetic Average Cashflow, | |
| 25. |
Value analysis should be applied when the following symptom(s) is (are) present |
| A. | Rate of return on investment is reducing |
| B. | Reduction in sales of the product |
| C. | Firm is unable to meet delivery promises |
| D. | All of the above |
| Answer» E. | |
| 26. |
Profit-Volume ratio is also known as |
| A. | Contribution ratio |
| B. | Contribution/Sales ratio |
| C. | Marginal Income percentage |
| D. | All of the above |
| Answer» E. | |
| 27. |
Risk in Capital budgeting is same as: |
| A. | Uncertainty of Cash flows, |
| B. | Probability of Cash flows, |
| C. | Certainty of Cash flows, |
| D. | Variability of Cash flows |
| Answer» E. | |
| 28. |
Present value tables for annuity cannot be straight away applied to varied stream ofcash flows. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 29. |
Concept of joint probability is used in case of: |
| A. | Independent Cashflows, |
| B. | Uncertain Cashflows, |
| C. | Dependent Cashflows, |
| D. | Certain Cashflows |
| Answer» D. Certain Cashflows | |
| 30. |
Determine Contribution if Fixed cost is Rs 40,000 and profit is Rs 30,000. |
| A. | Rs 60,000 |
| B. | Rs 70,000 |
| C. | Rs 30,000 |
| D. | None of the above |
| Answer» C. Rs 30,000 | |
| 31. |
Heterogeneous cash flows can be made comparable by |
| A. | Discounting technique |
| B. | Compounding technique |
| C. | Either a or b |
| D. | None of the above |
| Answer» D. None of the above | |
| 32. |
While measuring break-even analysis, it is considered that during a specific period there will be no change in general price level, i.e., labor, cost of material and other overheads. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 33. |
Pick up the correct reason for making conceptual (or preliminary) estimate from thefollowing: |
| A. | To have a check on a definitive cost estimate |
| B. | To check quotations from contractors and/or sub-contractors |
| C. | To compute target estimate for the owner while drawing and specifications are in initial stage |
| D. | All of these |
| Answer» E. | |
| 34. |
In cash flow statement, the item of interest is shown in A) Operating Activities B) Financing Activities C) Investing Activities |
| A. | Both A and B |
| B. | Both A and C |
| C. | Both B and C |
| D. | A, B, C |
| Answer» D. A, B, C | |
| 35. |
Time value of money indicates that |
| A. | A unit of money obtained today is worth more than a unit of money obtained in future |
| B. | A unit of money obtained today is worth less than a unit of money obtained in future |
| C. | There is no difference in the value of money obtained today and tomorrow |
| D. | None of the above |
| Answer» B. A unit of money obtained today is worth less than a unit of money obtained in future | |
| 36. |
Which of the following best describes horizontal foreign direct investment? |
| A. | long term lending to a foreign firm |
| B. | fdi in the same industry abroad as the foreign investor firm |
| C. | fdi into industry that provide inputs to the firm |
| D. | fdi into industry that uses the firm\s output |
| Answer» C. fdi into industry that provide inputs to the firm | |
| 37. |
Which of the following constitutes foreign direct investment? |
| A. | purchase of stock |
| B. | reinvestment of earnings by a wholly owned subsidiary abroad |
| C. | investment by all types for abroad |
| D. | lending of funds to a foreign subsidiary |
| Answer» D. lending of funds to a foreign subsidiary | |
| 38. |
Which of the following statements best defines FDI |
| A. | loans from multilateral institutions like imf and world bank |
| B. | investment in foreign assets to acquire lasting business interest |
| C. | buying shares of companies in a foreign country without gaining control over management |
| D. | foreign currency deposits of non-resident citizens |
| Answer» C. buying shares of companies in a foreign country without gaining control over management | |
| 39. |
The IRDA act passed in the year |
| A. | 1948 |
| B. | 1951 |
| C. | 2000 |
| D. | 1999 |
| Answer» E. | |
| 40. |
Virtual banking aims at rendering banking services through |
| A. | branch expansion |
| B. | advancing cheap creadit |
| C. | use of it services |
| D. | low expansion |
| Answer» D. low expansion | |
| 41. |
In recent years the number of RRBs has |
| A. | remained constant |
| B. | decreased |
| C. | low |
| D. | increased |
| Answer» C. low | |
| 42. |
In recent years Indian banks have increased their efficiency by |
| A. | by reducing number of employees |
| B. | expansion |
| C. | using information technology |
| D. | by increasing number of branches |
| Answer» D. by increasing number of branches | |
| 43. |
Financial inclusion aims at providing financial services to |
| A. | poor people |
| B. | indian investors abroad |
| C. | banking |
| D. | industrialists |
| Answer» B. indian investors abroad | |
| 44. |
Which of the following is not a feature of the tourism industry? |
| A. | has high employment potential |
| B. | it is composite of several service providers |
| C. | does not harm the natural environment |
| D. | has high foreign exchange earning potential |
| Answer» D. has high foreign exchange earning potential | |
| 45. |
In 2017 advances of commercial banks to the priority sector was |
| A. | 0.4 |
| B. | more than 40% |
| C. | less then 40% |
| D. | 0.45 |
| Answer» D. 0.45 | |
| 46. |
Which of the following is a growth potential in the healthcare industry in India? |
| A. | telemedicine |
| B. | expanding medical tourism |
| C. | growing insurance market |
| D. | all the above |
| Answer» D. all the above | |
| 47. |
Type of tourism that helps conserve natural diversity is |
| A. | heritage tourism |
| B. | eco tourism |
| C. | medical tourism |
| D. | adventure tourism |
| Answer» E. | |
| 48. |
Which of the following is not a characteristic of the Indian health care industry? |
| A. | inadequate insurance coverage |
| B. | high incidence of diseases |
| C. | inadequate infrastructure |
| D. | every citizen has access to high quality services |
| Answer» B. high incidence of diseases | |
| 49. |
The FDI limit permitted for all health related services under automatic route is |
| A. | 0.51 |
| B. | 1 |
| C. | 0.26 |
| D. | 0.74 |
| Answer» C. 0.26 | |
| 50. |
The healthcare industry includes |
| A. | hospitals |
| B. | health insurance |
| C. | pharmaceutical companies |
| D. | health realtes |
| Answer» E. | |