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Friday, March 30, 2012

Finance Objective Questions (Strategic Finance Quiz - 1)

1. Accounting standards AS - 1 is now mandatory.
[A]TRUE
[B]FALSE



2. A merger will make sense to the acquiring firm if its shareholders benefit.
[A]TRUE
[B]FALSE



3. Usually cost data is perfect for ABC Analysis & distribution.
[A]TRUE
[B]FALSE



4. A single organisation model serves to keep all individual initiatives to be targeted into a co-ordinated plan.
[A]TRUE
[B]FALSE



5. Assets held as stock - in - trade are also investments.
[A]TRUE
[B]FALSE



6. Organisational changes are similar to mission changes.
[A]TRUE
[B]FALSE



7. For determining exchange ratio, the model developed by Conn & Nielson is used.
[A]TRUE
[B]FALSE



8. Making decision on dividend is a very crucial area of financial management for a firm.
[A]TRUE
[B]FALSE



9. AS 1statement does not deal with operating or finance leases.
[A]TRUE
[B]FALSE



10. It is easy to find a risk free security.
[A]TRUE
[B]FALSE



11. If a company has resorted to buyback its shares, it cannot make a further issue of the same kind of securities within a period of 1 year.
[A]TRUE
[B]FALSE



12. In value of assets approach for computation of valuation of shares, the total value of all the assets will be divided by the total number of shares.
[A]TRUE
[B]FALSE



13. According to NOI Approach, any capital structure is optimum.
[A]TRUE
[B]FALSE



14. Trade credit creates book debts which the firm is expected to collect in the near future.
[A]TRUE
[B]FALSE



15. Determination of residual value of an asset is normally a difficult matter.
[A]TRUE
[B]FALSE



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