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 many times net credit sales are collected in accounts receivable during a period?
APayables Turnover Ratio
BReceivables Turnover Ratio
CAsset Turnover Ratio
DWorking Capital Ratio
An entry made at the end of an accounting period to un-record or reverse certain accrued adjusting entries made in the prior period is known as a:
AClosing Entry
BReversing Entry
CCorrecting Entry
DAdjusting Entry
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
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
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
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