Deck 5: Business Finance and Audit

Question 1

Cost Audit is comprised in which of the following steps?

A)Verification, Review, Reporting
B)Planning, Review, Reporting
C)Review, Verification, Reporting
D)Planning, Conducting, Reporting

Answer 1

Review, Verification, Reporting

Question 2

The financial statements of the company shall be authenticated by

A)Chief executive officers even he is not the director
B)Chief financial officer only if he is director.
C)Chairperson only if he is authorized by the board.
D)Statutory Body

Answer 2

Chairperson only if he is authorized by the board.

Question 3

The compares the dollar return generated by the firm to the return expected by the investors of the capital invested by them in the firm.

A)EBIT
B)EVA
C)ROI
D)DuPont Chart

Answer 3

EVA

Question 4

Which one of the following is a 'lag' performance indicator

A)Number of training hours per employee
B)Return on capital employed
C)Number of complaints received from customers
D)Output per employee

Question 5

Economic Value Addition was developed by                              

A)Stern & Stewart
B)Peter Drucker
C)Koontz & O'Donnel
D)Anthony & Govindrajan

Question 6

The Tata Group of Industries have modified and internalised the Baldridge Criteria and is known as the

A)Porter Prize for Excellence
B)Jamsetji Tata Award
C)Tata Business Excellence Model (TBEM)
D)Annual Awards of Business Excellence (AABE)

Question 7

Which of the following pair about Paradigm Shifts in the contemporary Business Environment is incorrect?

A)Control to Decontrol
B)Competition to Opening Up
C)Production to Marketing
D)Volume to Profit

Question 8

As per the RBI Internationals Banks have to maintain a Capital Adequacy Ratio of

A)8%
B)9%
C)12%
D)10%

Question 9

Which of the following is not a part of loan assets classification

A)Standard Assets
B)Earning Assets
C)Loss Assets
D)Doubtful Assets

Question 10

Earliest finish time can be regarded as

A)Earliest start time + duration of activity
B)Earliest start time duration of activity
C)Latest finish time + duration of activity
D)Latest finish time duration of activity

Question 11

The first use of the term "Social Audit" is generally attributed to ………………

A)Peter Drucker
B)George Coyder
C)Charles Medawar
D)Amartya Sen

Question 12

The stipulations as regards maintenance of accounts of / by NGOs / NPOs are stipulated by which of the following?

A)The Societies Registration Act
B)The Public Trust Act
C)The Companies Act
D)The Indian Trust Act

Question 13

PERT is based on the assumption that an activity's duration follows

A)Binomial Distribution
B)Probability Distribution
C)Uniform Distribution
D)Exponential Distribution

Question 14

of the Companies Act, 2013 provides that the Internal Auditor shall be a Chartered Accountant or a Cost Accountant or any other professional as may be decided by the Board of Directors.

A)Section 148
B)Section 138
C)Section 142
D)Section 146

Question 15

Cost Audit is applicable in case of the companies falling under certain specific categories of industries and for those companies who have been asked by the central government to maintain the cost accounting records and get these cost accounting records audited as per the provisions of of the Companies Act, 2013

A)Section 148
B)Section 138
C)Section 142
D)Section 146

Question 16

Section 139 provides that the first auditor of the company shall be appointed by Board of Directors of the company within days

A)60
B)30
C)120
D)45

Question 17

International auditing standards are issued by the:

A)International Accounting Standard Board
B)Financial Accounting Audit Board
C)International Audit and Assurance Standards Board
D)Auditing Practices Board

Question 18

In a responsibility report for a profit center, controllable fixed costs are deducted from contribution margin to show:

A)Profit center margin
B)Controllable margin
C)Net income
D)Income from operations

Question 19

Internal Perspective is part of the Complete Balanced Scorecard Strategy. This is a correct sub item for this perspective

A)Regulatory and Society Theme
B)Customer solutions
C)Strategic Technologies
D)Revenue Growth Strategy

Question 20

Learning & Growth Perspective: role for intangible assets -- people, systems, climate and culture is part of the BSC Strategy. Identify which of the following is a sub item of Learning & Growth Perspective

A)Improve shareholder value
B)Low total cost
C)Operations theme
D)Strategic technologies

Question 21

Cash Inflows from a project include

A)Tax Shield of Depreciation
B)After-tax Operating Profits
C)Raising of Funds
D)Both (a) and (b).

Question 22

If capital expense is recorded as revenue expense then which calculation will be wrong?

A)Bank balance
B)Debtors
C)Creditors
D)Net profit

Question 23

In Capital Budgeting, Sunk cost is excluded because it is

A)Of Small Amount
B)Not Incremental
C)Not Reversible
D)Reversible

Question 24

Which of the following is not a capital budgeting decision?

A)Expansion Programme
B)Merger
C)Replacement of an Asset
D)Inventory Level