WorksheetsEL NATH - ROUND ll
Total questions: 80
Worksheet time: 40mins
Net National income NNI does not include
Indirect Business taxes
Corporate income taxes
Depreciation charges
The rental value of house owners
Who frame Monetary Policy of India
Finance minister
Prime minister
Reserve Bank of India
IMF
Who frame fiscal policy of India
Reserve Bank of India
Ministry of Finance
Dept of Revenue
World bank
The difference between NNP and NDP is
Depreciation
Indiret tax
Net factor income from abroad
Current transfer from rest of the world
Which of the following Ledgers are generally in Debit
Asset & Liability
Revenue & Expense
Asset & Expense
Revenue & Liability
Which of the following statements describes the main objective of financial management?
Efficient acquisition and deployment of financial resources to ensure achievement of objectives
Providing information to management for day to day functions of control and decision making
Providing information to external users about the historical results of the organisation
Maximisation of shareholder wealth
Which of the following does NOT form part of the objectives of a corporate governance best practice framework?
Separation of chairperson and CEO roles
Establishment of audit, nomination and remuneration committees
Minimisation of risk
Employment of non-executive directors
Are the following statements true or false?
True False
1. Accounting profit is not the same as economic profit.
2. Profit takes account of risk.
3. Accounting profit can be manipulated by managers.
True, False, False
True, False, True
False, False, True
True, True, False
Indicate, by clicking in the relevant boxes, whether the following objectives are financial or non‐financial objectives of a company.
Objective
1. Maximisation of market share
2. Earnings growth
3. Sales revenue growth
4. Achieving a target level of customer satisfaction
5. Achieving a target level of return on capital employed
Financial - 1, 3
Non‐financial - 2, 4 & 5
Financial - 2, 3 & 5
Non‐financial - 1 & 4
Financial - 2, 4 & 5
Non‐financial - 1 & 3
Financial - 4 & 5
Non‐financial - 1, 2 & 3
Which of the following statements is NOT correct?
Return on capital employed can be defined as profit before interest and tax divided by the sum of shareholders’ funds and prior charge capital
Return on capital employed is the product of net profit margin and net asset turnover
Dividend yield can be defined as dividend per share divided by the ex dividend share price
Return on equity can be defined as profit before interest and tax divided by shareholders’ funds
Criteria that measures how quickly project will return its original investment is?
Accounting rate of return
Payback period
Internal rate of return
Benefit cost ratio
Which of the following could be an investor?
A. Insurance companies
B. Banks
C.Government
D. All the above
Which of the following are not a financial intermediary?
A. Insurance companies
B. Banks
C. Brokers
D. Government
Name the micro finance company that becomes the first to start operation as a commercial bank
Pay Tm Bank
Vodafone M Pisa Bank
Bandhan Bank
Yes Bank
Which of the following regulates Credit Rating agencies in India?
RBI
NSE
SEBI
ICAI
FATCA Stands for
Foreign Account Tax Compliance Act
Foreign Account Trade Company Act
Financial Account Tax Compliance Act
Fiscal Account Tax Compliance Act
As per which act, holidays are provided in the banks?
RBI Act
Banking Regulation Act
as per orders of Govt.
Banking Nationalisation Act
world investment report is published by
UNDP
World Bank
IMF
UNCTAD
Merchant banking in India is governed by
SEBI
IRDA
RBI
Ministry of Finance
If you wish to purchase US dollars to travel abroad, you will approach:-
Ministry of finance
US Embassy
Any bank branch authorized for such activity
External Affairs ministry
If a bank has to borrow funds from RBI for a long term, which among the following will be applicable?
Repo Rate
Reverse Repo
Bank Rate
liquidity Adjustment Facility
Bhadti ka naam zindagi
axis bank
bank of baroda
bandhan bank
bank of baroda
lets make money simple
Kotak Mahindra
yes bank
Citi bank
bank of baroda
knowledge is Power
Financial Express
The Economic Times
Hindustan Times
none of above
It accepts deposits from individuals and organizations that have excess funds and provide loans to those who are in need. This financial institution is called _______.
investment banks
commercial banks
credit unions
insurance companies
Profitability ratios measure:
the speed at which the firm is turning over its assets
the ability of the firm to earn an adequate return on sales, total assets, and invested capital
the firm's ability to pay off short term obligations as they are due
the debt position of the firm in light of its assets and earning power
Financial leverage:
reflects the firm's commitment to fixed, financial assets
has no impact on the earning of the firm
reflects the amount of debt used in the capital structure of the firm
primarily affects the left side of the balance sheet
The valuation of a financial asset is based on determining:
the present value of future cash flows
the current yield to maturity on long term corporate bonds
the capital budgeting process
what the corporation is paying to attract preferred shareholders
The spread may best be defined as:
the compensation due the lead underwriter
the total compensation for those participating in the distribution process
the price finally paid by the public for the shares
the proceeds from the distribution received by the firm
Preferred equity has all of the following characteristics except:
fixed dividends
the cumulative right to annual dividends
precedence over common stock dividends
residual claim to income
The indifference point identifies:
equality of impact on eps between two financing plans
equality of impact on EBIT between two financing plans
equality of impact on revenue between two financing plans
equality of impact on number of shares between two financing plans
Characteristics of pledging accounts receivable include all of the following, except:
the sale of receivables to a finance company
the lender stipulates which accounts are of sufficient quality
60-80% of the value of the acceptable collateral may be borrowed
the interest rate is normally well in excess of prime
Dividends may be considered relevant because:
they increase the investor's overall return
a higher return will be earned than with retained earnings
they are preferred by investors in higher tax brackets
they resolve uncertainty in the minds of investors
A call provision allows the firm to:
call the bond and common stock
redeem bonds prior to the call date
pay a discount 5-10% below par
redeem the bond prior to maturity
In the "real world," corporate bonds usually pay interest:
continuously
quarterly
semiannually
annually
Walter’s Model suggests for 100% DP Ratio when
ke = r
ke < r
ke > r
ke = 0
Financial Leverage is calculated as:
EBIT÷ Contribution
EBIT÷ PBT
EBIT÷ Sales
EBIT÷ Variable Cost
Dividend irrelevance argument of MM Model is based on:
Issue of Debentures
Issue of Bonus Share
Arbitrage
Hedging
Which of the following statements is correct?
A Higher Receivable Turnover is not desirable
Interest Coverage Ratio depends upon Tax Rate
Increase in Net Profit Ratio means increase in Sales
Lower Debt-Equity Ratio means lower Financial Risk
Shares of face value of 10 are 80% paid up. The company declares a dividend of 50%. Amount of dividend per share is
5
4
80
50
Risk in Capital budgeting implies that the decision-maker knows ________________ of the cash flows.
Variability
Probability
Certainty
None of the above
EOQ is the quantity that minimizes
Total Ordering Cost
Total Inventory Cost
Total Interest Cost
Safety Stock Level
_is a loan instrument which promises to pay a fixed sum on a fixed date, and to pay interest to the lender
Securities
Bond
Derivatives
Shares
Which of the following is a Bretton Woods institution?
The International Monetary Fund (IMF)
The World Trade Organization (WTO)
The International Labor Organization (ILO)
The Securities and Exchange Commission (SEC)
A country's exporters favour all but which one of the following?
A weak domestic currency
A strong domestic currency
A stable currency market
A well regulated currency market
Hedge funds are criticized for which one of the following reasons?
Their activities can annoy corporate decision makers
Their speculative activities can distort markets
They make lots of money
They attract people who like to gamble
Swelling sovereign debt is a worry in all but which one of the following circumstances?
When tax revenues fall
When economic growth slows
When public spending is falling
When public spending is spiraling out of control
Which of the following is an advantage of the pegged exchange rate?
It protects the country against economic downturn
It attracts foreign investors
It leads to financial stability
It deters speculators on the country's currency
FULL FORM OF AICPA
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
ASSOCIATION INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
ACCOUNTING INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
AUSTRALIA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
Find the odd man out
commercial paper
share certificate
certificate of deposit
treasury bill.
The process of managing the sales ledger of a client by a financial service company is called _____________.
forfeiting
factoring
leasing
securitization of debt
Non-banking companies should compulsorily get credit rating for their _________.
capital market instruments
money market instruments
debt market instruments
none of these
Term lending institutions are ________ market intermediaries.
cash
credit
capital
sales
A forward contract is a derivative of a _____________.
spot contract
financial contract
particular time contract
none of these
The minimum net worth for the first category of merchant banker is Rs. _______.
2 crore
1 crore
9 crore
5 crore
The minimum public offering for a subscription must be at least _____ % of each issue.
80
50
43
25
The securities and exchange board of India was set up on April 12, ________.
1950
1975
1988
2000
AMFI stands for ______
Assets management fund of India
Association for mutual fund of India
Asset mutual fund of India
Association for management of India
The pattern of investment of a mutual fund is oriented towards fixed income yielding securities under ______.
Growth fund scheme
Income fund scheme
Balanced fund scheme
Money market fund scheme
CRISIL was started in _____.
1998
1988
1978
1968
ICRA was started in _____.
1990
1991
1992
1993
Our financial advisor recommended that we hedge our bets by investing in a diverse range of assets.
Concentrate our investments in one area
Invest all our money at once
Diversify our investments to spread the risk
Unfortunately, the restaurant went belly up within a year of opening.
became popular
changed ownership
went bankrupt
"Advance received from customers" can be categorized under which element of accounting?
Asset
Liability
Equity
Income
Expense
Financial accountancy is governed by?
local standards only
international standards
local as well as international accounting standards
company’s internal top management only
Which is not a benefit of financial accounting?
A. Maintaining systematic records
Protecting and safeguarding business assets
Historical in nature
Facilitates rational decision making
Direct costs like manufacturing costs, salaries of factory workers etc. are called:
Cost of doing business
Unavoidable costs
Cost of goods sold
Payroll
