This quiz works best with JavaScript enabled. Home > Economy > Accounting > Accounting – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Financial Management includes A) Finance function. B) Financial Resources. C) Measurement of Performance. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. The finance manager plays an important role in A) Amalgamation. B) Reconstruction. C) Liquidation Decisions. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. If no information is available, the General Rule for valuation of stock for balance sheet is A) Standard Cost. B) Historical Cost. C) Realizable Value. D) Replacement Cost. Show Answer Correct Answer: B) Historical Cost. 4. Accounting is generally understood as A) Means of communication. B) Source of business information. C) Summarisation of business transactions. D) All of the above. Show Answer Correct Answer: D) All of the above. 5. Which round of international trade negotiations resulted in the creation of the World Trade Organization? A) Kennedy Round of 1964-1967. B) Tokyo Round of 1973-1979. C) Uruguay Round of 1986-1993. D) Doha Round of 2003-2007. Show Answer Correct Answer: C) Uruguay Round of 1986-1993. 6. Which of the following statement(s) regarding IRR is true? A) If IRR is less than the firm's cost of capital, the project should be rejected. B) A project can have multiple IRRs depending on the cash flow streams. C) Both (a) and (b). D) A project can have only one IRR. Show Answer Correct Answer: C) Both (a) and (b). 7. Which of the following derivative is not traded on Indian Stock Market? A) Stock Futures. B) Index Options. C) Index Futures. D) Forward Rate Agreements. Show Answer Correct Answer: D) Forward Rate Agreements. 8. Which of the following is not followed in capital budgeting? A) Accrual Principle. B) Post-tax Principle. C) Cash flows principle. D) Interest Exclusion Principle. Show Answer Correct Answer: A) Accrual Principle. 9. The least common type of transaction in the foreign exchange is a A) Spot transaction. B) Swap transaction. C) Forward transaction. D) None of the above. Show Answer Correct Answer: C) Forward transaction. 10. Which is external source of finance? A) Letters of Credit. B) Advance from customers. C) Finance from Companies. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Which is the importance of the concept of cost of capital? A) Helpful in Capital budgeting process. B) Helpful in Capital structure decisions. C) Helpful in comparative analysis of various sources of finance. D) All of the above. Show Answer Correct Answer: D) All of the above. 12. Which of the following is not a relevant cost in capital budgeting? A) Sunk cost. B) Allocated overheads. C) Both (a) and (b). D) Opportunity cost. Show Answer Correct Answer: C) Both (a) and (b). 13. Which of the following statements about goodwill is not correct? A) It becomes obsolete. B) It is an intangible asset. C) It does not become obsolete. D) It is not visible but it subject to fluctuations. Show Answer Correct Answer: A) It becomes obsolete. 14. The basic objective of financial Management is A) Ensuring financial disciplined in the organisation. B) Maximization of shareholders wealth. C) Profit planning of the organisation. D) Maxirnization of profits. Show Answer Correct Answer: B) Maximization of shareholders wealth. 15. Which is the limitation of Traditional approach of Financial Management? A) One-sided approach. B) Ignores allocation of resources. C) More emphasis on long term problems. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Role of finance manager includes? A) Financial analysis. B) Investing and Financing Decisions. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: C) Both (a) and (b). 17. What does the return on total assets take into account? A) Shareholder's fund. B) Income after taxation. C) Total outside liability. D) Income before tax and interest on fixed liability. Show Answer Correct Answer: D) Income before tax and interest on fixed liability. 18. Which is not the form of dividend? A) Stock. B) Regular. C) Property. D) Zero Dividend. Show Answer Correct Answer: D) Zero Dividend. 19. Which of the following are examples of flexible working practices? A) Part-time work. B) Parental leave. C) Both (a) and (b). D) Flexible hours arrangement. Show Answer Correct Answer: C) Both (a) and (b). 20. The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is A) Pegged or fixed exchange rates. B) Freely fluctuating exchange rates. C) Managed floating exchange rates. D) Adjustable pegged exchange rates. Show Answer Correct Answer: C) Managed floating exchange rates. ← PreviousNext →Related QuizzesEconomy QuizzesAccounting Quiz 1Accounting Quiz 2Accounting Quiz 3Accounting Quiz 4Accounting Quiz 5Accounting Quiz 6Accounting Quiz 7Accounting Quiz 8Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books