Deck 2: Business Management and Accounting

Question 1

The time the activity would take if things did not go well is known as

A)Pessimistic time
B)Most likely time
C)Optimistic time
D)Average time

Answer 1

Pessimistic time

Question 2

Which of the following is responsible for establishing a private company's internal control?

A)Management
B)Auditors
C)Management and auditors
D)Committee of Sponsoring Organizations

Answer 2

Management

Question 3

In the balanced scorecard approach quality would come under which perspective?

A)The internal perspective
B)The customer perspective
C)The financial perspective
D)The innovation and learning perspective

Answer 3

The internal perspective

Question 4

Performance management is believed to have originated from which country?

A)Japan
B)France
C)Denmark
D)USA

Question 5

The U.S. National Quality Award is named after

A)Joseph Juran
B)Genichi Taguchi
C)W. Edwards Deming
D)Malcolm Baldrige

Question 6

Which of the following statements is false? Balanced scorecards

A)Are one type of performance dashboard
B)Can be cascaded to different levels/parts of organisations
C)Cannot be used in conjunction with budgetary control systems
D)Can be used to produce strategy maps

Question 7

Which of the following statements regarding flaws suffered by financial measures is not correct:

A)They are hard to quantify
B)They do little to motivate employees to improve accounting profits
C)They are not effective in getting managers' attention
D)They are useful in identifying operational problems

Question 8

Which of the following variable does ROI examine?

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

Question 9

A sound Capital Budgeting technique is based on:

A)Cash Flows
B)Accounting Profit
C)Interest Rate on Borrowings
D)Last Dividend Paid

Question 10

Capital Budgeting deals with:

A)Long-term Decisions,
B)Short-term Decisions
C)Both (a) and (b)
D)Neither a) nor (b)

Question 11

Capital Budgeting Decisions are based on:

A)Incremental Profit
B)Incremental Cash Flows
C)Incremental Assets,
D)Incremental Capital.

Question 12

Capital Budgeting is a part of:

A)Investment Decision
B)Working Capital Management
C)Marketing Management
D)Capital Structure

Question 13

Which of the following is not applied in capital budgeting?

A)Cash flows be calculated in incremental terms
B)All costs and benefits are measured on cash basis
C)All accrued costs and revenues be incorporated
D)All benefits are measured on after-tax basis

Question 14

Which of the following is not followed in capital budgeting?

A)Cash flows Principle
B)Interest Exclusion Principle
C)Accrual Principle
D)Post-tax Principle

Question 15

Which of the following is not true for capital budgeting?

A)Sunk costs are ignored
B)Opportunity costs are excluded
C)Incremental cash flows are considered
D)Relevant cash flows are considered

Question 16

Which of the following is not used in Capital Budgeting?

A)Time Value of Money
B)Sensitivity Analysis
C)Net Assets Method
D)Cash Flows

Question 17

Which one is the Capital Expenditure?

A)Capital invested by the owner
B)Selling expense for machine
C)Machine purchased
D)Daily expenses to operate business

Question 18

Who among the following have the authority to inspect the books of accounts?

A)Directors
B)Members
C)Officer of Sebi
D)Both (a) and (c)

Question 19

Under responsibility accounting, the evaluation of a manager's performance is based on matters that the manager:

A)Directly controls
B)Directly and indirectly controls
C)Indirectly controls
D)Has shared responsibility for with another manager

Question 20

Return on Assets and Return on Investment Ratios belong to:

A)Liquidity Ratios
B)Profitability Ratios
C)Solvency Ratios
D)Turnover

Question 21

………….. costs are not easily changed and are often fixed, for ex, once a company has decided to rent a place.

A)Committed
B)Discretionary
C)Engineered
D)Marginal