Question 1

Cost Audit is comprised in which of the following steps?

Accepted Answer

C

Question 2

The financial statements of the company shall be authenticated by

Accepted Answer

The financial statements of a company are typically authenticated by the chairperson of the company if they are authorized by the board, ensuring that the board has given the necessary approval for the chairperson to sign off on the statements.

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.

Accepted Answer

EVA (Economic Value Added) is a measure that compares the dollar return generated by a firm to the return expected by investors of the capital invested in the firm. It is designed to assess the value a company generates from funds invested in it.

Question 4

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

Accepted Answer

Lag performance indicators reflect past performance and outcomes, such as financial results. Return on capital employed is a financial metric that measures the profitability and efficiency of capital use, reflecting past performance.

Question 5

Economic Value Addition was developed by

Accepted Answer

Economic Value Addition (EVA) was developed by Stern Stewart & Co, a consulting firm. It is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit.

Question 6

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

Accepted Answer

The Tata Group of Industries has adapted the Baldridge Criteria into its own framework for assessing and improving its businesses, known as the Tata Business Excellence Model (TBEM). This model is used across the Tata Group to drive excellence and benchmark performance.

Question 7

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

Accepted Answer

The incorrect pair is "Competition to Opening Up" because the contemporary business environment has shifted from focusing solely on competition among businesses to embracing open innovation, collaboration, and partnerships. However, this shift is more accurately described as moving from a closed, internally focused system to an open system that values external ideas and cooperation, rather than from "Competition to Opening Up."

Question 8

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

Accepted Answer

As per the Reserve Bank of India (RBI) guidelines, international banks operating in India are required to maintain a Capital Adequacy Ratio (CAR) of 9%. This is in line with the Basel III norms, which aim to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage.

Question 9

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

Accepted Answer

Earning Assets are not classified under loan assets classification. Loan assets are typically classified into Standard Assets, Substandard Assets, Doubtful Assets, and Loss Assets based on their risk and likelihood of default. Earning Assets refer to those assets that generate income, such as loans given and investments made, but this term is not used specifically for classifying the risk associated with loan assets.

Question 10

Earliest finish time can be regarded as

Accepted Answer

Earliest finish time is calculated by adding the duration of the activity to its earliest start time. This gives the earliest point in time when an activity can be completed assuming it starts as early as possible.

Question 11

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

Accepted Answer

George Coyder is generally attributed to the first use of the term "Social Audit".

Question 12

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

Accepted Answer

The answer of The stipulations as regards maintenance of accounts...

Question 13

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

Accepted Answer

PERT (Program Evaluation and Review Technique) is based on the assumption that an activity's duration follows a Probability Distribution, specifically a Beta distribution for most cases, which allows for variability in estimating the duration of activities in project management.

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.

Accepted Answer

Section 138 of the Companies Act, 2013 specifies that the Internal Auditor of a company can be a Chartered Accountant, a Cost Accountant, or such other professional as may be decided by the Board of Directors.

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

Accepted Answer

Section 148 of the Companies Act, 2013, deals with the provisions related to the cost audit applicable to certain classes of companies, including the requirement to maintain cost accounting records and get them audited.

Question 16

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

Accepted Answer

The Board of Directors must appoint the first auditor of the company within 30 days from the date of registration of the company, as per Section 139 of the Companies Act.

Question 17

International auditing standards are issued by the:

Accepted Answer

The International Audit and Assurance Standards Board (IAASB) is responsible for issuing international standards on auditing, assurance, and related services.

Question 18

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

Accepted Answer

Controllable margin is calculated by deducting controllable fixed costs from the contribution margin. This figure is used to assess the performance of a profit center's manager, focusing on the costs and revenues they can control.

Question 19

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

Accepted Answer

Regulatory and Society Theme is part of the Internal Perspective of the Complete Balanced Scorecard 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

Accepted Answer

The Learning & Growth Perspective in the Balanced Scorecard (BSC) Strategy focuses on the intangible assets of an organization, such as people, systems, and organizational culture. "Strategic technologies" falls under this category as it relates to the systems and tools that support an organization's growth and learning capabilities.

Quiz 5: Business Finance and Audit