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 →
Which financial ratio measures how efficiently a company utilizes its capital asset base to generate sales revenue?
AAsset Turnover Ratio
BInventory Turnover Ratio
CReturn on Equity
DGross Profit Margin
Which accounting convention advises that when in doubt, accountants should choose methods that understate assets and revenues rather than overstate them?
AConservatism (Prudence) Principle
BMateriality Principle
CConsistency Principle
DFull Disclosure Principle
Which financial accounting rule states that financial transactions must be recorded at their original acquisition cost rather than current market value?
AMatching Principle
BHistorical Cost Principle
CRealization Principle
DConsistency Principle
Under the accrual accounting framework, when should revenue be formally recognized in the accounting records?
AWhen cash payment is physically received
BWhen goods or services are delivered and earned
CWhen the contract is signed
DAt the end of the fiscal accounting period
What financial metric measures a company’s capacity to pay off immediate short-term obligations using only its most liquid current assets?
ACurrent Ratio
BQuick Ratio (Acid-Test)
CDebt-to-Equity Ratio
DCash Conversion Ratio
Which capital budgeting decision metric calculates the precise discount rate that sets the Net Present Value (NPV) of a project equal to zero?
APayback Period
BInternal Rate of Return (IRR)
CProfitability Index
DAccounting Rate of Return
What type of accounting error occurs when an entry is posted to the correct side of an incorrect account within the same ledger category?
AError of Omission
BError of Principle
CError of Commission
DCompensating Error
In managerial cost accounting, costs that remain constant in total over a relevant range of production volume but decrease per unit as output increases are:
AVariable Costs
BFixed Costs
CSemi-Variable Costs
DMarginal Costs
Which financial market tool represents an unsecured, short-term promissory note issued by corporations to raise short-term funds?
ATreasury Bill
BCommercial Paper
CCertificate of Deposit
DCorporate Bond
What accounting concept requires that expenses incurred to generate specific revenues must be recognized in the exact same reporting period?
AEntity Concept
BMatching Principle
CMateriality Concept
DGoing Concern Concept