12641. Total depreciation of an asset cannot exceed its:
✅ D. Depreciable value
Option A : Scrap value Option B : Residual value Option C : Market value Option D : Depreciable value Correct Answer : Depreciable value Read more
Management Sciences MCQs – Page 633
12642. Amount paid to Masood posted to the credit side of his account would affect___________?
✅
Option A : Masoods account Option B : Cash account Option C : Cash account and Gagans account Option D : None of these Correct Answer : Masoods account Read more
12643. Which of the following statements is/are true ?
✅ D. Cash Book is a subsidiary book as well as a ledger
Option A : A sale of an asset is recorded in the Sales Book Option B : Total of Return Outward Book is debited to Return Outward Account Option C : The balance of Petty Cash Book is a liability Option D : Cash Book is a subsidiary book as well as a ledger Correct Answer : Cash Book is… Read more
12644. Which of the following is true regarding closing entries?
✅ D. They must be made after the adjusting entries but before the reversing entries
Option A : They must be followed by reversing entries Option B : They transfer the balances in all of the Nominal Accounts to the Trading and Profit and Loss Account Option C : They must be made after the reversing entries but before the adjusting entries Option D : They must be made after the adjusting entries but before… Read more
12645. Closing stock is generally valued at______________?
✅ D. Cost price or Market price whichever is lower
Option A : Cost Price Option B : Market Price Option C : Cost price or Market price whichever is higher Option D : Cost price or Market price whichever is lower Correct Answer : Cost price or Market price whichever is lower Read more
12646. Discount for quick repayment of debt is normally referred as____________?
✅ C. Cash discount
Option A : Trade discount Option B : Prompt payment discount Option C : Cash discount Option D : Bulk discount Correct Answer : Cash discount Read more
12647. The first step in accounting process is___________?
✅ B. Identifying the transaction
Option A : Recording the transaction Option B : Identifying the transaction Option C : Posting the transaction Option D : Preparing the source documents Correct Answer : Identifying the transaction Read more
12648. A chart of accounts generally start with which of the following types of accounts?
✅ A. Assets accounts
Option A : Assets accounts Option B : liability accounts Option C : Cash accounts Option D : Revenue accounts Correct Answer : Assets accounts Read more
12649. Dow Jones is stock exchange market of__________?
✅ C. New York
Option A : Tokyo Option B : London Option C : New York Option D : None of these Option E : Correct Answer : New York Read more
12650. According to capital asset pricing model assumptions, quantities of all assets are______________?
✅ A. Given and fixed
Option A : Given and fixed Option B : Not given and fixed Option C : Not given and variable Option D : Given and variable Option E : Correct Answer : Given and fixed Read more
12651. According to capital asset pricing model assumptions, variances, expected returns and co-variance of all assets are__________?
✅ A. Identical
Option A : Identical Option B : Not identical Option C : Fixed Option D : Variable Option E : Correct Answer : Identical Read more
12652. Stock issued by company have higher rate of return because of______________?
✅ B. High book to market ratio
Option A : Low market to book ratio Option B : High book to market ratio Option C : High market to book ratio Option D : Low book to market ratio Option E : Correct Answer : High book to market ratio Read more
12653. All assets are perfectly divisible and liquid in___________?
✅ C. Capital asset pricing model
Option A : Tax free pricing model Option B : Cost free pricing model Option C : Capital asset pricing model Option D : Stock pricing model Option E : Correct Answer : Capital asset pricing model Read more
12654. Betas tend to move towards 1.0 with passage of time are classified as__________?
✅ D. Adjusted betas
Option A : Standard betas Option B : Varied betas Option C : Historical betas Option D : Adjusted betas Option E : Correct Answer : Adjusted betas Read more
12655. In capital asset pricing model, characteristic line is classified as____________?
✅ A. Regression line
Option A : Regression line Option B : Probability line Option C : Scattered points Option D : Weighted line Option E : Correct Answer : Regression line Read more
12656. A theory which states that assets are traded at price equal to its intrinsic value is classified as___________________?
✅ B. Efficient market hypothesis
Option A : Efficient money hypothesis Option B : Efficient market hypothesis Option C : Inefficient market hypothesis Option D : Inefficient money hypothesis Option E : Correct Answer : Efficient market hypothesis Read more
12657. Type of relationship exists between an expected return and risk of portfolio is classified as___________?
✅ B. Linear
Option A : Non-linear Option B : Linear Option C : Fixed and aggregate Option D : Non-fixed and non-aggregate Option E : Correct Answer : Linear Read more
12658. Stocks which has high book for market ratio are considered as_____________?
✅ A. More risky
Option A : More risky Option B : Less risky Option C : Pessimistic Option D : Optimistic Option E : Correct Answer : More risky Read more
12659. If market value is greater than book value, then investors for future stock are considered as___________________?
✅ D. Optimistic
Option A : Experienced Option B : Inexperienced Option C : Pessimistic Option D : Optimistic Option E : Correct Answer : Optimistic Read more
12660. In capital market line, risk of efficient portfolio is measured by its____________?
✅ A. Standard deviation
Option A : Standard deviation Option B : Variance Option C : Aggregate risk Option D : Ineffective risk Option E : Correct Answer : Standard deviation Read more