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 →
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
What does Inventory Turnover Ratio measure?
AHow rapidly inventory is sold and replaced during a given accounting period
BThe proportion of total assets tied up in inventory
CThe net margin earned on inventory sales
DThe percentage of damaged inventory written off
Which financial statement reports a company’s cash receipts and cash payments categorized into operating, investing, and financing activities?
AIncome Statement
BBalance Sheet
CStatement of Cash Flows
DStatement of Retained Earnings
Which financial metric represents the earnings generated per outstanding share of common stock?
AReturn on Assets (ROA)
BEarnings Per Share (EPS)
CDividend Yield
DBook Value Per Share
Purchase of equipment for cash is classified under which activity in the Statement of Cash Flows?
AOperating Activity
BInvesting Activity
CFinancing Activity
DNon-cash Expense
Payment of cash dividends to company shareholders is classified as which type of activity in the cash flow statement?
AOperating Activity
BInvesting Activity
CFinancing Activity
DAdministrative Activity
Which financial concept states that a dollar received today is worth more than a dollar received in the future?
ACost of Capital
BTime Value of Money
CCapital Structure
DOperating Leverage
What is the present value of a perpetuity paying $1,000 annually at an interest rate of 10%?
A$1,000
B$5,000
C$10,000
D$100,000
Which capital budgeting technique evaluates projects based on the discount rate that sets the Net Present Value (NPV) equal to zero?
APayback Period
BAccounting Rate of Return
CInternal Rate of Return
DProfitability Index