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 is the fundamental purpose of preparing a Trial Balance?
ATo calculate net profit or net loss for the period
BTo verify the mathematical equality of total debit balances and total credit balances in the ledger
CTo measure company cash flow
DTo satisfy external audit mandates
Which type of error occurs when a transaction is completely omitted from the books of original entry?
AError of Commission
BError of Omission
CError of Principle
DCompensating Error
Treating the purchase of office furniture as an immediate office supply expense violates which accounting concept?
ACapital versus Revenue Expenditure Distinction
BPrudence Principle
CMoney Measurement Concept
DEntity Concept
Which financial contract gives the buyer the right, but not the obligation, to buy an underlying asset at a specified exercise price before or at maturity?
AFutures Contract
BCall Option
CPut Option
DInterest Rate Swap
What is the primary motive behind financial Hedging?
ATo maximize speculative short-term profits
BTo reduce or eliminate exposure to unwanted market financial risks
CTo avoid paying taxes on capital gains
DTo artificially inflate reported corporate revenues
Which inventory valuation method assumes that the latest inventory items purchased are sold first?
AFirst-In, First-Out (FIFO)
BWeighted Average Cost
CLast-In, First-Out (LIFO)
DSpecific Identification
A favorable Direct Materials Quantity Variance occurs when:
AActual price paid per unit of material is less than standard price
BActual quantity of materials used is less than standard quantity allowed for actual production
CTotal actual manufacturing overhead exceeds budgeted overhead
DDirect labor rate paid exceeds standard rate
According to the Modigliani-Miller Theorem without taxes, what effect does capital structure have on total firm value?
AHigher debt increases firm value continuously
BCapital structure is irrelevant to firm value
C100% equity yields maximum firm value
DPreferred stock maximizes value
How is Labor Rate Variance calculated?
A(Actual Hours Worked − Standard Hours) × Standard Rate
B(Actual Rate Paid − Standard Rate) × Actual Hours Worked
C(Actual Rate Paid − Standard Rate) × Standard Hours
DTotal Overhead ÷ Actual Labor Hours
What is the Weighted Average Cost of Capital (WACC)?
AThe cost of issuing common equity only
BThe required average rate of return a company must earn on its existing asset base to satisfy all capital providers
CThe coupon rate paid on long-term corporate bonds
DThe discount rate applied only to high-risk risk-free Treasury bills