Commerce online quiz 75

By | August 21, 2018

10000 MCQ /questions on commerce questions answers

Question 1
In case of rising prices (inflation), FIFO method will:
A
provide lowest value of closing stock and profit
B
provide highest value of closing stock and profit
C
provide highest value of closing stock but lowest value of profit
D
provide highest value of profit but lowest value of closing stock
Question 2
Real interest rate and real cash flows do not include
A
equity effects
B
debt effects
C
inflation effects
D
opportunity effects
Question 3
In cash flow analysis, two projects are compared by using common life is classified as
A
transaction approach
B
replacement chain approach
C
common life approach
D
Both B and C
Question 4
Chances of cost to be considered as variable are more, if the
A
time horizons are long
B
time horizons are short
C
time horizons are irrelevant
D
time horizons are relevant
Question 5
Cost of inventories includes
A
Direct Material + Direct Expenses
B
Direct Labour + Direct Expenses
C
All costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition
D
Direct material only
Question 6
The bank rate means.....
A
Rate of Interest charged by commercial banks from borrowers
B
Rate of Interest at which commercial banks discounted bills of their borrowers
C
Rate of interest allowed by commercial banks on their deposits
D
Rate at which RBI purchases or re-discounts bills of exchange of commercial banks
Question 7
The 'Buy Back of Shares' was prohibited in India until-
A
October 31, 1998
B
October 31, 2000
C
October 31, 2001
D
October 31, 2002
Question 8
Which of the following is a basic principle of finance as it relates to the management of working capital?
A
Profitability varies inversely with risk
B
Liquidity moves together with risk
C
Profitability moves together with risk
D
Profitability moves together with liquidity
Question 9
Which one is not an important objective of financial Management?
A
Profit Maximisation
B
Wealth Maximisation
C
Value Maximisation
D
Maximisation of Social benefits
Question 10
In linear cost function, fixed cost is considered as
A
constant
B
variable
C
exponent
D
base
Question 11
Maximum value of correlation is
A
2
B
1.5
C
1
D
0
Question 12
One characteristic not typical of oligopolistic industry is
A
Too much importance to non-price competition
B
Price leadership
C
Horizontal demand curve
D
A small number of firms in the industry
Question 13
Bond which is offered below its face value is classified as
A
present value bond
B
original issue discount bond
C
coupon issued bond
D
discounted bond
Question 14
The following steps are involved in managing by objectives
  1. Preliminary setting of objectives at the top
  2. Setting subordinates objectives
  3. Tying resources with the goals
  4. Clarifying the organisational role
A
1, 2, 3, 4
B
1, 2, 4, 3
C
1, 3, 2, 4
D
1, 4, 2, 3
Question 15
What is an organization structure in which each employee reports to both a functional (or division) manager and to a project (or group) manager, known as?
A
Strategic business unit
B
Departmentation by customer
C
Matrix structure
D
Departmentation by territory
Question 16
Provision for bad debts is made as per the
A
Conservatism concept
B
Cost concept
C
Consistency concept
D
Going concern concept
Question 17
'What is cross rate?
A
A rate of exchange derived from Central Bank
B
A rate of exchange between two currencies, other than those that form a market's principal rates
C
A rate of exchange derived from the quotations for buying currencies
D
A rate of exchange quoted by a dealer in foreign exchange for selling currencies
Question 18
The expansion of EAR is?
A
equivalent annual rate
B
equivalent annuity rate
C
equally applied rate
D
equal advance rate
Question 19
Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called
A
times series method
B
time horizon method
C
aggression method
D
regression method
Question 20
Risk in which value of investment depends on what happens to foreign exchange rates is classified as
A
preferred risk
B
exchange rate risk
C
country risk
D
foreign risk
There are 20 questions to complete.

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