MCQ Portal

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June 2018 CMA&FM Paper

The Number of MCQs are limited as per ICMAI Past Paper in Syllabus 2016

1. Decision-making primarily concerns with:

Past Future Both Past and Future None of the above

2. A large margin of safety indicates:

Over-Capitalization The soundness of the business Overproduction None of the above

3. Revising budgets is:

Unnecessary Cannot determine Necessary Inadequate data

4. Which of the following operating measures would a manager like to see decreasing over time?

Merchandise Inventory Turn-over Total quality cost % of on-time deliveries Finished Goods Inventory Turn-over

5. Which department is most likely responsible for a price variance in Direct Materials?

Warehousing Receiving Purchasing Production

6. Another name for the 'Learning Curve' is:

Exponential Curve Growth Curve Production Curve Experience Curve

7. Which of the following is a profitability ratio?

Proprietary Ratio Debt-Equity Ratio Price-Earning Ratio Fixed Asset Ratio

8. Which of the following is NOT a source of funds?

Issue of Capital Issue of Debenture Decrease in Working Capital Increase in Working Capital

9. The Beta (β) of a security measures its:

Divisible Risk Financial Risk Market Risk None of the above

10. Which of the following is NOT a discounted cash flow technique?

NPV PI Accounting Average Rate of Return IRR

11. The 'Dividend-Payout Ratio' is equal to:

The Dividend yield plus the capital gains yield Dividends per share divided by Earnings per Equity Share Dividends per share divided by par value per share Dividends per share divided by current price per share

12. If EBIT = ` 1,00,000, Fixed Assets = ` 2,00,000, Sales = ` 10,00,000, and Variable Costs = ` 7,00,000, then the Operating Leverage will be:

2 3 6 4