a)

b)

c)

d)

Inequality & degree of concentration

Transparency

Disclosure through public announcement

Interest of small shareholders

10.	The HHI index reflects :-
11.	In case of direct placement of commercial papers it may be issued for maturities from the date of issue.

Bw one to two yrs,More than 2 yrs,less than 6 months,bw 15 days to one year.

Arising from the a) revaluation of fixed assets

b)
From foreign exchange translation differences

c)
From the adjustment of differences arising on amalgamation

d)
Investor's proportionate interest

True

False

The right of ownership

Realisability of investments

The remittance of income & proceeds of disposal

Other disclosures

Quantitative variables

Qualitative factors

Quantitative factors

Qualitative variables

1. Segment revenue   

 
   

 1.  Enterprise assets

 2. Segment result   

 
   

 2.  Enterprise revenue

 3. Segment assets   

 
   

 3.  Enterprise liabilities

 4. Segment liabilities   

 
   

 4.  Cash flows

   

               

 5.  Enterprise net profit or loss

   

               

 6.  Liquidity

18. Changes in the investee`s equity includes those :-
24. Only firms with a large amount of financial slack can afford tender offers.
40. In the disclosures in financial statements, there are significant restrictions on :-
44. To determine the firm's value, what is difficult to placing a value on?
50. When the working capital is less than its peak level :-
52. Liquidation value is also known as

Top of Form

 

 True/False

  Question  

Odd lots purchase is not a method of buy back of shares.

  Correct Answer  

False

  Your Answer  

False

 

 Select The Blank

  Question  

As per NOI Approach - the overall capitalization rate remains ________ for all levels of financial leverage.

  Correct Answer  

Constant

  Your Answer  

Constant

 

 Multiple Choice Single Answer

  Question  

The following method of valuation is used for listed companies that have an active market for their shares :-

  Correct Answer  

Market value approach

  Your Answer  

Market value approach

 

 Multiple Choice Single Answer

  Question  

The main assumption in comparative analysis is the possibility of :-

  Correct Answer  

Combination or co-location of similar functions

  Your Answer  

Combination or co-location of similar functions

 

 Multiple Choice Multiple Answer

  Question  

The budgetary records are useful for:-

  Correct Answer  

Validating accounting costs , Providing a rationale for division of costs , Replacing missing data

  Your Answer  

Validating accounting costs , Providing a rationale for division of costs , Replacing missing data

 

 Select The Blank

  Question  

usually credit lines are established for a period of ________.

  Correct Answer  

1 year

  Your Answer  

1 year

 

 Multiple Choice Single Answer

  Question  

As per the study conducted by RBI, Current assets constitute :-

  Correct Answer  

More than 50 % of the total assets

  Your Answer  

More than 50 % of the total assets

 

 Select The Blank

  Question  

Cost of ________ is more than other sources for raising short - term finance.

  Correct Answer  

Bank finance

  Your Answer  

Bank finance

 

 Match The Following

Question

Correct Answer

Your Answer

Diversification

Growth through the combination of firms in unrelated fields of business

Different or unrelated business activity

Horizontal mergers

2 Firms operate & compete in a similar kind of business

2 Firms operate & compete in a similar kind of business

Vertical mergers

Firms in different stages of production

Firms in different stages of production

Conglomerate mergers

Different or unrelated business activity

Growth through the combination of firms in unrelated fields of business

 

 Multiple Choice Single Answer

  Question  

in case of temporary working capital, the investment in current assets varies with :-

  Correct Answer  

Seasonal requirements

  Your Answer  

Seasonal requirements

 

 Multiple Choice Multiple Answer

  Question  

Organisations have various records and reports from past actions such as :-

  Correct Answer  

Logs to record workflow , Specific costs , External and internal audit reports

  Your Answer  

Logs to record workflow , Specific costs , External and internal audit reports

 

 True/False

  Question  

The carrying amount for current investments is the lower of cost & fair value.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

A company is prohibited to buy back its own shares in the following circumstances :-

  Correct Answer  

Through any subsidiary company , Through any investment company , If a company defaults in repayment of deposits or interest due thereon

  Your Answer  

Through any subsidiary company , Through any investment company , If a company defaults in repayment of deposits or interest due thereon

 

 True/False

  Question  

Explicit cost and implicit cost are the two parts of cost of debt.

  Correct Answer  

True

  Your Answer  

True

 

 Select The Blank

  Question  

Forward or backward integration is a characteristic of ________.

  Correct Answer  

Vertical Mergers

  Your Answer  

Vertical Mergers

 

 Multiple Choice Single Answer

  Question  

As per Dorsman (1995) - financing with a high percentage of debt prevents firms from :-

  Correct Answer  

Investing too much

  Your Answer  

Investing too much

 

 Multiple Choice Single Answer

  Question  

Estimation for determining the useful life of an asset is required :-

  Correct Answer  

On some reasonable basis

  Your Answer  

On some reasonable basis

 

 True/False

  Question  

In market value approach, interested parties never manipulate the stock markets.

  Correct Answer  

False

  Your Answer  

False

 

 Multiple Choice Single Answer

  Question  

Which of the following company is reaping high market valuation due to showing human resources as an asset in its balance sheet information?

  Correct Answer  

Infosys

  Your Answer  

BHEL

 

 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 Single Answer

  Question  

Suppliers of equity are interested in :-

  Correct Answer  

High share prices

  Your Answer  

High share prices

 

 Match The Following

Question

Correct Answer

Your Answer

Free cash flow theory

Enormous conflicts of interest between Stakeholders and shareholders

Enormous conflicts of interest between Stakeholders and shareholders

Net income approach

Cost of debt & equity do not change with a change in leverage ratio

Cost of debt & equity do not change with a change in leverage ratio

Net operating income approach

The overall capitalization rate remains constant for all levels of financial leverages

The overall capitalization rate remains constant for all levels of financial leverages

Modigliani - Miller Theory

weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure

weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure

 

 Select The Blank

  Question  

The date on which the announcement is made of new dividend is called ________.

  Correct Answer  

Declaration date

  Your Answer  

Ex - dividend date

 

 Multiple Choice Multiple Answer

  Question  

The net income approach is based on following 3 assumptions :-

  Correct Answer  

There are no taxes , Cost of debt is less than equity capitalization rate , Use of debt doesn't change the risk perception of investors

  Your Answer  

There are no taxes , Cost of debt is less than equity capitalization rate , Use of debt doesn't change the risk perception of investors

 

 Multiple Choice Single Answer

  Question  

A single business segment does not include products & services :-

  Correct Answer  

With significantly differing risks & returns

  Your Answer  

With significantly differing risks & returns

 

 True/False

  Question  

For determining exchange ratio, the model developed by Conn & Nielson is used.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Single Answer

  Question  

Debt suppliers main concern is :-

  Correct Answer  

Interest & debt repayment

  Your Answer  

Interest & debt repayment

 

 Multiple Choice Single Answer

  Question  

Value added analysis is a method to determine, if elements within a process flow provide the :-

  Correct Answer  

Values

  Your Answer  

Values

 

 Select The Blank

  Question  

Investors can reduce the company related risk by diversification of their investments in ________.

  Correct Answer  

Shares of a large number of companies

  Your Answer  

Shares of a large number of companies

 

 Multiple Choice Multiple Answer

  Question  

The 3 main types of accounting records followed by an organisation are :-

  Correct Answer  

Organisational accounting , Budgetary accounting , Cost accounting

  Your Answer  

Organisational accounting , Budgetary accounting , Cost accounting

 

 Multiple Choice Multiple Answer

  Question  

The following disclosures in financial statements in relation to investments are appropriate :-

  Correct Answer  

The accounting policies for the determination of carrying amount of investments , Profits & losses on disposal of current investments , The amounts included in P & L Statement

  Your Answer  

The accounting policies for the determination of carrying amount of investments , Profits & losses on disposal of current investments , The amounts included in P & L Statement

 

 Select The Blank

  Question  

In the shareholding pattern of a company, the promoter's holding includes________.

  Correct Answer  

Foreign Promoters

  Your Answer  

Foreign Promoters

 

 Multiple Choice Multiple Answer

  Question  

For M & As, the acquiring firm needs industry data on :-

  Correct Answer  

Market growth , Nature of competition , Degree of regulation

  Your Answer  

Market growth , Marketing capabilities , Nature of competition

 

 Multiple Choice Multiple Answer

  Question  

The financial framework of a merger decision covers 3 interrelated aspects i.e. :-

  Correct Answer  

Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision

  Your Answer  

Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision

 

 Multiple Choice Single Answer

  Question  

According to Net Income Approach, the average cost of capital declines as the leverage ratio :-

  Correct Answer  

Increases

  Your Answer  

Increases

 

 True/False

  Question  

A long term investment is an investment other than a current investment.

  Correct Answer  

True

  Your Answer  

True

 

 True/False

  Question  

The capital Asset pricing model describes the pricing of assets as well as derivatives.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

Personnel services expenses is made up of:-

  Correct Answer  

Personnel salaries , Cost of facilities , Training & development budgets

  Your Answer  

Cost of facilities , Training & development budgets

 

 Multiple Choice Multiple Answer

  Question  

Investments having no physical existence includes :-

  Correct Answer  

Shares , Debentures , Bonds

  Your Answer  

Shares , Debentures , Bonds

 

 Select The Blank

  Question  

the commercial paper may be issued in the multiples of ________.

  Correct Answer  

5 lakhs

  Your Answer  

5 lakhs

 

 Multiple Choice Single Answer

  Question  

Modigliani - Miller Theoram is based on :-

  Correct Answer  

Perfect Capital Markets

  Your Answer  

Perfect Capital Markets

 

 Select The Blank

  Question  

The most popular kind of dividend policy is one that pays a ________.

  Correct Answer  

Regular, steady dividend

  Your Answer  

Regular, steady dividend

 

 Multiple Choice Multiple Answer

  Question  

AS 13 Does not deal with :-

  Correct Answer  

The bases for recognition of interest, dividends & rentals earned on investments , Operating or finance leases , Investment in mutual funds

  Your Answer  

The bases for recognition of interest, dividends & rentals earned on investments , Operating or finance leases , Investment in mutual funds

 

 True/False

  Question  

According to NOI Approach, any capital structure is optimum.

  Correct Answer  

True

  Your Answer  

False

 

 Multiple Choice Single Answer

  Question  

One of the important assumptions for capital structure theories is :-

  Correct Answer  

Debt and equity are the 2 kinds of funds used by the firm

  Your Answer  

The payout ratio is never 100 %

 

 Multiple Choice Single Answer

  Question  

Arbitrage means :-

  Correct Answer  

Securities cannot sell at different prices

  Your Answer  

Securities cannot sell at different prices

 

 True/False

  Question  

Short term financing is meant for funding working capital of a company.

  Correct Answer  

True

  Your Answer  

True

	LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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