Management Sciences
Management Sciences MCQs With Answers
0 Management Sciences MCQs for CSS, PPSC, FPSC, NTS and entry-test preparation. Take a scored quiz instead →
Under IFRS and US GAAP, how should preliminary research expenditures incurred during the initial phase of an internal project be treated?
ACapitalized as an Intangible Asset
BExpensed immediately in the Income Statement
CDeferred and amortized over 10 years
DRecorded as a Contingent Asset
What term defines the practice of selling accounts receivable to a third-party financial institution at a discount to obtain immediate cash flow?
ASecuritization
BFactoring
CForfeiting
DPledging
Which financial statement reconciliation reconciles net income to cash generated from operating activities under the indirect method?
ADirect Cash Flow Statement
BIndirect Cash Flow Reconciliation
CStatement of Equity
DWorking Capital Statement
What pricing model asserts that asset returns are determined by multiple macroeconomic risk factors rather than just market risk alone?
ACapital Asset Pricing Model (CAPM)
BArbitrage Pricing Theory (APT)
CGordon Growth Model
DBlack-Scholes Model
What is the trial balance primary objective during the accounting cycle process?
ATo calculate final net income
BTo verify mathematical equality of total debit and credit balances
CTo record daily transactions chronologically
DTo determine market valuation of firm assets
Which market hypothesis asserts that security prices fully reflect all publicly available information, making fundamental analysis incapable of producing excess returns?
AWeak Form EMH
BSemi-Strong Form EMH
CStrong Form EMH
DInefficient Market Model
Which corporate payout strategy increases the number of outstanding shares while reducing nominal per-share par value without altering total equity?
ACash Dividend
BStock Split
CShare Buyback
DRight Issue
Which depreciation method allocates equal depreciation expense for each year of an asset’s estimated useful life?
AStraight-Line Method
BReducing Balance Method
CSum-of-the-Years'-Digits
DUnits of Production Method
What financial metric calculates the total return earned on total assets before accounting for capital structure interest and taxes?
AReturn on Equity (ROE)
BReturn on Capital Employed (ROCE)
CBasic Earning Power (BEP)
DGross Margin
What measure evaluates the sensitivity of Operating Income (EBIT) to changes in sales revenue volume?
ADegree of Financial Leverage (DFL)
BDegree of Operating Leverage (DOL)
CDegree of Combined Leverage (DCL)
DTotal Leverage Index