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 →
An asset costing $50,000 has an estimated salvage value of $5,000 and a 5-year useful life. Under the Straight-Line method, what is the annual depreciation expense?
A$10,000
B$9,000
C$8,000
D$11,000
What is Audit Risk defined as?
AThe risk that the auditor expresses an inappropriate audit opinion when financial statements are materially misstated
BThe risk that the company goes bankrupt after audit completion
CThe risk of audit fee non-payment by the client
DThe risk that management cancels the audit contract
When a bond’s coupon rate is lower than the current market interest rate (Yield to Maturity), the bond sells at a:
APremium
BPar Value
CDiscount
DZero-coupon rate
What is the Cash Conversion Cycle (CCC)?
ADays Sales Outstanding + Days Inventory Outstanding + Days Payable Outstanding
BDays Inventory Outstanding + Days Sales Outstanding - Days Payable Outstanding
CDays Payable Outstanding - Days Sales Outstanding
DTotal Cash Flow from Operations / Current Liabilities
What is Duration in fixed income finance?
AThe remaining calendar years until a bond matures
BA measure of the price sensitivity of a bond to changes in interest rates
CThe total interest yield accrued on a bond
DThe credit rating assigned by standard rating agencies
Under the Economic Order Quantity (EOQ) model, total inventory costs are minimized when holding costs equal:
ACarrying Costs
BOrdering Costs
CShortage Costs
DPurchase Cost of inventory
A budget that is adjusted to match the actual level of activity achieved during a period is called a:
AStatic Budget
BFlexible Budget
CZero-Based Budget
DCapital Budget
Which financial market deals in short-term debt instruments with maturities of one year or less?
ACapital Market
BMoney Market
CEquity Market
DDerivatives Market
In Zero-Based Budgeting (ZBB), managers must:
AIncrease last year's budget figures by a fixed inflation percentage
BJustify every single line-item expense from a baseline of zero for each new period
CFocus solely on capital asset investments
DBudget only for fixed overhead costs
What is Commercial Paper?
ASecured short-term loan provided by commercial banks
BUnsecured short-term promissory note issued by creditworthy corporations
CLong-term government bond used for infrastructure
DShare certificate issued to common stockholders