M C Q s D r i v e

Management Sciences 5308 MCQs [All-Courses]

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Management Sciences focuses on the planning, organizing, leading, and controlling of resources to achieve organizational goals.This subject is highly important for competitive exams, academic study, and professional careers in the business and public sectors.

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
Correct Answer: Liquidity Ratios

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
Correct Answer: Either because both options are of equal value

Which of the following is a special case of annuity, where the stream of cash flows continues forever?

A Ordinary Annuity
B Special Annuity
C Annuity Due
D Perpetuity
Correct Answer: Perpetuity

Quick Ratio is also known as_________?

A Current Ratio
B Acid-test Ratio
C Cash Ratio
D None of the given options
Correct Answer: Acid-test Ratio

Balance Sheet is based upon which of the following formula?

A Assets = Liabilities – Stockholder’s equity
B Assets + Liabilities = Stockholder’s equity
C Assets + Stockholder’s equity = Liabilities
D Assets = Liabilities + Stockholder’s equity
Correct Answer: Assets = Liabilities + Stockholder’s equity

Which of the following ratios are intended to address the firm’s financial leverage?

A Liquidity Ratios
B Long-term Solvency Ratios
C Asset Management Ratios
D Profitability Ratios
Correct Answer: Long-term Solvency Ratios

Which of the following form of business organization is least regulated?

A Sole-proprietorship
B General Partnership
C Limited Partnership
D Corporation
Correct Answer: Sole-proprietorship

The conflict of interest between stockholders and management is known as:

A Agency problem
B Interest conflict
C Management conflict
D Agency cost
Correct Answer: Agency problem

During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?

A Rs. 33,000
B Rs. 25,000
C Rs. 17,000
D Rs. 8,000
Correct Answer: Rs. 17,000

Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?

A Ordinary annuity
B Annuity due
C Perpetuity
D None of the given options
Correct Answer: Ordinary annuity