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UNIT-4 MOCK TEST
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STUDENT PASSCODE - BATCH01
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Right to left
Left to right
Q1
Score: 1.39
homemade leverage.
restructured leverage.
combined leverage
Q2
Score: 1.39
Heavy advertisement expenditure.
Expenses incurred in removing the business to more convenient premises.
Preliminary expenses.
Depreciation on fixed assets.
Q3
Score: 1.39
Market value of the asset
Historical cost or other amount substituted for the historical cost of the depreciable asset when the asset had been revalued
Expected useful life of the depreciable asset
Estimated residual value of the depreciable asset
Q4
Score: 1.39
Institute of Chartered Accountants of India
Institute of Cost and Works Accountants of India
Institute of Company Secretaries of India
Q5
Score: 1.39
Expenses incurred by way of repairs of existing assets which do not in any way add to their earning capacity.
Wages paid for the erection of plant and machinery.
Obsolescence cost.
Cost of goods purchased for resale.
Q6
Score: 1.39
Accounting standards codify the generally accepted accounting principles
They lay down the norms of accounting policies and practices by way of codes or guidelines
The main purpose of accounting standards is to provide information to the user as to the basis on which the accounts have been prepared
All of the above
Q7
Score: 1.39
graphical analysis
preference analysis
common size analysis
returning analysis
Q8
Score: 1.39
0.11%
11.40%
0.12 times
NONE OF THESE
Q9
Score: 1.39
8.57 times
8.57%
0.11 times
11%
Q10
Score: 1.39
low riskier firms
high riskier firms
low dividends paid
Q11
Score: 1.39
Rs 2,80,000
Rs 2,20,000
Rs 2,90,000
Rs 3,00,000
Q12
Score: 1.39
True
False
Q13
Score: 1.39
Only A
Only B
Both A and B
None of the above
Q14
Score: 1.39
As a current liability
As an appropriation of profits
Either a or b
None of the above
Q15
Score: 1.39
As a current liability
As an appropriation of profits
Either a or b
NONE OF THESE
Q16
Score: 1.39
Non-current investments
Trade Investments
Sinking fund investments
All of the above
Q17
Score: 1.39
Payment of dividend on share capital
Payment of tax
Increase in working capital
All of the above
Q18
Score: 1.39
Rs 1,04,500
Rs 1,40,500
Rs 1,64,500
Q19
Score: 1.39
Rs 5000
Rs 1000
Rs 1,100
Q20
Score: 1.39
Cost of direct labour
Cost of indirect labour
Direct expenses
Indirect expenses
Q21
Score: 1.39
Cost of direct labour
Cost of indirect labour
Direct expenses
Indirect expenses
Q22
Score: 1.39
Time keeper
Welder
Moulder
Turner
Q23
Score: 1.39
Machinist
Supervisor
Inspector
Sweeper
Q24
Score: 1.39
Lubricating oil
Octroi
Import duties
Insurance
Q25
Score: 1.39
Freight charges
grease
coolant
cotton waste
Q26
Score: 1.39
Multiple
Operating
Unit
Batch
Q27
Score: 1.39
Accepted
Rejected with condition
Rejected with approval
Rejected
Q28
Score: 1.39
Planning for funds
Raising of funds
Allocation of Resources
All of the above
Q29
Score: 1.39
(A) (B) (C) (D) 1 4 3 2
(A) (B) (C) (D) 1 2 3 4
(A) (B) (C) (D) 3 1 2 4
(A) (B) (C) (D) 1 4 3 5
Q30
Score: 1.39
Both A and R are true and R is the correct explanation of A
Both A and R are true but R is not a correct explanation of A
A is true but R is false
A is false but R is true
Q31
Score: 1.39
It avoids the problem of computing the required rate of return for each investment proposal.
It is the only way to measure a firm's required return.
It acknowledges that most new investment projects have about the same degree of risk.
It acknowledges that most new investment projects offer about the same expected return.
Q32
Score: 1.39
Discount rate which the firm should apply to all of the projects it undertakes
Rate of return a firm must earn on its existing assets to maintain the current value of its stock.
Coupon rate the firm should expect to pay on its next bond issue
Maximum rate which the firm should require on any projects it undertakes.
Q33
Score: 1.39
6.14%
6.54%
8.60%
9.14%
Q34
Score: 1.39
Return on the stock minus the risk-free rate.
Difference between the return on the market and the risk-free rate
Beta times the market risk premium. d. Beta times the risk-free rate
. Market rate of return
Q35
Score: 1.39
Financial terms
Non‐financial terms
Subjective matter
both a & b
Q36
Score: 1.39
Indefinite period
Definite period
Period of one year
Six months
Q37
Score: 1.39
All business activities
Production activities
Purchase activities
Sales activities
Q38
Score: 1.39
Management
Share holders
Creditors
all of the above
Q39
Score: 1.39
Production department
Finance department
Marketing department
ALL
Q40
Score: 1.39
Decentralized activity
Centralized activity
BOTH
Q41
Score: 1.39
Marginal costing
Ratio analysis
Standard costing
Subjective matter
Q42
Score: 1.39
Obtaining bank credi
Issue of shares
Getting grants from government
NONE OF THESE
Q43
Score: 1.39
Undercapitalization
Overcapitalization
Both
Q44
Score: 1.39
Bonus shares
Rights shares
Remuneration plans
None
Q45
Score: 1.39
Changes in government policies
. Inflationary conditions
BOTH
Q46
Score: 1.39
Can
cannot
may be
Q47
Score: 1.39
only a & b
only c & d
only a
only d
Q48
Score: 1.39
only a
only b
only c
only d
Q49
Score: 1.39
Unnecessary
Can’t determine
. Necessary
Q50
Score: 1.39
Affects its reliability
Increase the accuracy
Both
Q51
Score: 1.39
both
none of these
only a
only b
Q52
Score: 1.39
Period of budget committee
Period of budget centres
. Period for which a budget is prepared
Q53
Score: 1.39
(i), (ii), (iii) and (iv)
(ii), (iii), (iv) and (v)
(i), (iii), (iv) and (vi)
(i), (ii), (iv) and (vi)
Q54
Score: 1.39
Abuse of dominant position
Anti-competitive agreements
Medical negligence
Q55
Score: 1.39
(i), (ii) and (iii)
(i), (ii), (iii) and (iv)
(i), (ii), (iii), (iv) and (v)
ii), (iii), (iv) and (v)
Q56
Score: 1.39
(i), (ii), (iii), (iv) and (v)
(i), (ii), (iii) and (iv)
(ii), (iv) and (v)
(ii), (iii), (iv) and (v)
Q57
Score: 1.39
(i), (ii), (iii) and (iv)
(ii), (iii), (iv) and (v)
(i), (iii), (iv) and (v)
Q58
Score: 1.39
(i), (ii), (iii) and (iv)
(ii), (iii), (iv) and (v)
(i), (iv) and (v)
Q59
Score: 1.39
No complaint can be entertained in respect of a product purchased more than 2 years back.
A complaint against medical negligence can be filed by legal heir or representative of the deceased.
A complaint involving a claim of Rs. 15 lakhs is to be filed before the State Commission.
Both (A) and (C)
Q60
Score: 1.39
Direct effect on the Consolidated Balance Sheet
No effect on the Consolidated Balance Sheet
No effect on Net Profit
Consolidated Balance Sheet
Q61
Score: 1.39
Direct effect on the Consolidated Balance Sheet
No effect on the Consolidated Balance Sheet
No effect on Net Profit
Q62
Score: 1.39
HR Accounting
Inflation Accounting
Social Accounting
Responsibility Accounting
Q63
Score: 1.39
Attainable Standard
Basic Standard
Current Standard
Ideal Standard
Q64
Score: 1.39
Proprietory Ratio
Stock-Turnover Ratio
Debt-Equity Ratio
Q65
Score: 1.39
(c) (d) (b) (a)
(d) (c) (a) (b)
(d) (a) (c) (b)
(c) (d) (a) (b)
Q66
Score: 1.39
Both (A) and (R) are correct.
(A) is correct, but (R) is wrong.
(A) is wrong, but (R) is correct.
Q67
Score: 1.39
Both (A) and (R) are correct.
Only (A) is correct.
Only (R) is correct.
Q68
Score: 1.39
(iv) (ii) (i) (iii)
(i) (iii) (iv) (ii)
(ii) (i) (iii) (iv)
(iii) (iv) (ii) (i)
Q69
Score: 1.39
Both (A) and (R) are correct.
Only (A) is correct.
Only (R) is correct.
Q70
Score: 1.39
Cross Elasticity of Demand
Substitution Elasticity of Demand
Complementary Elasticity of Demand
Price Elasticity of Demand
Q71
Score: 1.39
Rs. 200 and Rs. 200
Rs. 100 and Rs. 200
Rs. 260 and Rs. 100
Rs. 160 and Rs. 100
Q72
Score: 1.39
Isocost is tangent to Isoquant
MRTS between inputs is equal
Any movement from optimum point will lead to low level of output
all of the above
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