

Management Sciences MCQs
These Management Sciences MCQs are for public service commission exams and BBA, and MBA students to prepare for their examinations. All MCQs are prepared after having a look at past papers of public service commission examinations held from time to time. These Management Science questions are very important for all types of tests conducted by FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, STS, ETEA, and other testing agencies of Pakistan.
Which of the following set of ratios relates the market price of the firms common stock to selected financial statement items?
A: Liquidity Ratios
B: Leverage Ratios
C: Profitability Ratios
D: Market Value Ratios
Market Value Ratios
If a firm uses cash to purchase inventory, its quick ratio will?
A: Increase
B: Decrease
C: Remain unaffected
D: Become zero
Decrease
Standard Corporation sold fully depreciated equipment for Rs.5,000. This transaction will be reported on the cash flow statement as a(n):
A: Operating activity
B: Investing activity
C: Financing activity
D: None of the given options
Investing activity
Which of the following ratios are particularly interesting to short term creditors?
A: Liquidity Ratios
B: Long-term Solvency Ratios
C: Profitability Ratios
D: Market Value Ratios
Liquidity Ratios
Mr. Y and Mr. Z are planning to share their capital to run a business. They are going to employ which of the following type of business?
A: Sole-proprietorship
B: Partnership
C: Corporation
D: None of the given options
Partnership
You just won a prize, you can either receive Rs. 1000 today or Rs. 1,050 in one year. Which option do you prefer and why if you can earn 5 percent on your money?
A: Rs. 1,000 because it has the higher future value
B: Rs. 1,000 because you receive it sooner
C: Rs. 1,050 because it is more money
D: Either because both options are of equal value
Either because both options are of equal value
Which of the following ratios are particularly interesting to shortterm creditors?
A: Liquidity Ratios
B: Long-term Solvency Ratios
C: Profitability Ratios
D: Market Value Ratios
Liquidity Ratios
In which form of Business, owners have limited liability?
A: sole proprietorship
B: partnership
C: joint stock company
D: none of the above
joint stock company
Balance Sheet is based upon which of the following formula?
A: Assets = Liabilities “ Stockholders equity
B: Assets + Liabilities = Stockholders equity
C: Assets + Stockholders equity = Liabilities
D: Assets = Liabilities + Stockholders equity
Assets = Liabilities + Stockholder’s equity
Quick Ratio is also known as_________?
A: Current Ratio
B: Acid-test Ratio
C: Cash Ratio
D: None of the given options
Acid-test Ratio
