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 →
Shares that carry a cumulative right to back-dividends if a company omits dividend payments in prior years are called:
ANon-Cumulative Preferred Shares
BCumulative Preferred Shares
CParticipating Common Shares
DTreasury Shares
When a corporation buys back its own previously issued common stock from the open market, the stock is reclassified as:
AAuthorized Stock
BTreasury Stock
CUnissued Capital
DPreemptive Stock
What is the process of examining supporting source documents (such as invoices, receipts, and shipping records) to substantiate recorded accounting entries called?
AVouching
BTracing
CConfirmation
DAnalytical Review
Direct written confirmation obtained by auditors directly from external third parties (e.g., banks, customers) provides evidence primarily regarding which assertion?
APresentation and Disclosure
BExistence and Rights/Obligations
CInternal Control Efficiency
DManagement Intent
In make-or-buy and special-order decision making, costs that differ between alternative choices are known as:
ASunk Costs
BRelevant Costs
CCommitted Fixed Costs
DHistorical Costs
A cost that has already been incurred and cannot be altered by any present or future managerial decision is called a:
AOpportunity Cost
BSunk Cost
CDifferential Cost
DMarginal Cost
Degree of Financial Leverage (DFL) measures the sensitivity of:
AEBIT to changes in sales volume
BEarnings Per Share (EPS) to changes in Operating Income (EBIT)
CSales volume to changes in fixed assets
DNet profit to changes in working capital
What is the main benefit of financial leverage (debt financing) for tax-paying corporations?
ALower fixed interest payments
BTax deductibility of interest payments (Interest Tax Shield)
CElimination of bankruptcy risk
DExemption from regulatory filing
Which cash management model determines the optimal target cash balance by balancing transaction costs against the opportunity cost of holding liquid cash, analogous to EOQ?
AMiller-Orr Model
BBaumol Model
CCapital Asset Pricing Model
DBlack-Scholes Model
In the Miller-Orr cash management model, what triggers a transaction to buy marketable securities?
ACash balance reaches the Upper Control Limit
BCash balance touches the Lower Control Limit
CCash balance equals the Target Return Point
DInterest rates rise above baseline