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 →
What term describes an obligation of uncertain timing or amount that is recognized on financial statements when probability requirements are met?
AContingent Liability
BProvision
CAccrued Expense
DCapital Expenditure
What working capital ratio measures the average number of days required to convert raw materials into cash received from customers?
ACash Conversion Cycle (CCC)
BDays Sales Outstanding (DSO)
COperating Cycle
DPayables Payment Period
Which financial market operates as a secondary market exchange where previously issued stock securities are bought and sold among investors?
APrimary Market
BSecondary Market
CMoney Market
DCommodities Market
Which inventory valuation method calculates ending inventory and cost of goods sold based on the weighted average cost of all units available for sale during the period?
AFIFO (First-In, First-Out)
BLIFO (Last-In, First-Out)
CWeighted Average Cost Method
DSpecific Identification Method
What term describes a contract granting the buyer the right, but not the obligation, to buy an underlying asset at a specified price before or on an expiration date?
APut Option
BCall Option
CFutures Contract
DForward Contract
Which cost accounting technique allocates overhead costs to products based on the specific activities required to produce them?
AJob Order Costing
BProcess Costing
CActivity-Based Costing (ABC)
DAbsorption Costing
According to the Pecking Order Theory of financial management, what is a firm’s first priority source of capital when financing new projects?
AExternal Debt
BInternal Retained Earnings
CNew Common Stock Equity
DPreferred Stock
What type of audit procedure involves independent confirmation directly received by the auditor from third parties regarding account balances?
AAnalytical Procedures
BExternal Confirmation
CInspection of Assets
DReperformance
Which financial performance metric calculates the net operating profit of a business after deducting the dollar cost of capital employed?
AMarket Value Added (MVA)
BEconomic Value Added (EVA)
CReturn on Equity (ROE)
DNet Profit Margin
Under the going concern concept in financial accounting, financial statements are prepared on the basic assumption that:
AThe business will liquidate within the current fiscal year
BThe business will continue operational existence for the foreseeable future
CAll assets will be immediately converted into cash value
DThe owner's personal wealth is tied directly to the firm