| Post Name | CHIEF INTERNAL AUDITOR |
|---|---|
| Department | KSEB |
| Question Paper Code | 131/2015 |
| Date of Test | 10 July 2015 |
| Medium of Question | ENGLISH |
| Exam Type | OMR Examination |
| Total Questions | 100 |
1
The fund which do not have fixed date of redemption :
Answer
C. Open ended funds _
2
Credit rating of debt security is :
Answer
A. Merely opinion
3
| Which of the following is not available in India? . ;
Answer
C. Commodity options
4
In India, derivatives interest rate are regulated by : |
Answer
D. Reserve bank of India | .
5
Commercial paper are generally issued at a price : |
| |
Answer
D. Less than face value |
6
Based on the accounting profession, which of the following would be considered a cash flow
item from an investing activity :
Answer
A. Cash outflow to acquire fixed assets
7
Use of funds include a/an :
Answer
B. Increase in fixed assets
8
Primary duty of a merchant banker is : |
Answer
C. Working as a capital market
9
Which of the following is not a cash outflow for the firm? |
Answer
A. Depreciation
10
The most basic requirement for a firm’s marketable securities :
Answer
B. Safety
11
Marketable securities are primarily :
|
Answer
C. Short-term debt instruments
12
The capital investment is one that :
|
Answer
D. Has the prospects of long term benefits
13
Assets management company is formed : |
Answer
B. To manage mutual fundsinvestments _
14
Margin are imposed on options sellers to safeguard the interest of :
Answer
D. All the above
. |
15
If strike price is more than the spot price of the assets, the call option is known :
Answer
A. Out of money
16
. 16. Which of the following ratios indicates the short term liquidity of a business?
Answer
D. Acid test ratio
17
Notional cost is also known as:
Answer
B. Imputed cost
18
A power house which generates and supplies power is called :
Answer
C. Service cost centre
19
The value of abnormal loss is debited to:
Answer
C. Costing profit and loss account
20
Ifthe fixed cost is Rs. 20,000 and Profit-Volume (PV) ratio is 50%, the break-even will be :
Answer
A. Rs. 40,000
21
Which of the following costing reduces the possibility of under pricing?
Answer
C. Absorption
22
-The point at which joint products become separately identifiable is called :
Answer
B. Split-off point
23
Costs involve cash outlay or payment to other parties is called :
Answer
A. Out of pocket cost
24
Which of the following can improve break-even point?
Answer
B. Increase in sale price
25
Which one of the following Multiple costing is not used in:
Answer
D. Chemicals
26
The direct material usage budget and direct material purchases budget differ because of
which of the following? | |
Answer
D. A planned changed in the level of material stock
27
Astandard that is never altered once established is known as a/an :
Answer
A. Basic standard
28
Which of the following is true at break-even point?
Answer
D. Contribution = Fixed cost
29
Which of the following term is not used interchangeably with the word ‘standard costs’?
Answer
C. Scheduled cost
30
Operations budgets normally cover a period of :
Answer
A. One year.or less
31
Difference between standard cost and revised standard cost :
Answer
A. Revision variance
32
The difference between hours paid and hours worked is knownas: -
Answer
B. Idle time variance
|
33
‘Bird in hand’ argument is given by :
Answer
B. Gordon’s model
34
Incase of net income approach, the cost of equity is :
Answer
A. Constant
35
The personal leverage can replace corporate leverage is assumed by : |
Answer
B. : MM Model
:
36
The base value of the index of NIFTY is: |
Answer
D. 1000 |
37
Cost of issuing new shares to the public is known as :
Answer
C. Floatation cost
38
Dividend irrelevance argument of MM Model is based on :
Answer
C. Arbitrage
39
If risky cash flows are recast in terms of their certainty equivalent, they should be
discounted at :
Answer
B. Arisk-free rate of return |
|
40
According to Walter, 100% dividend is payable in:
Answer
C. Declining firm
41
NOI approach advocates that the degree of debt financing is : !
Answer
B. Irrelevant
42
Cost of capital means : .
Answer
A. Required rate of return
43
Which of the following projects does not involve a capital budgeting decision?
|
Answer
C. A proposal by a retail food store to increase the number of cans of a particular
tomato paste held in inventory
44
Which of the following cost of capital requires tax adjustment?
Answer
A. Costofdebentures . -
45
Which of the following is not used in capital budgeting? .
Answer
D. Net assets method |
46
Incapital budgeting sunk cost is excluded because it is :
Answer
A. Not incremental -
47
Which of the following capital expenditure planning and control techniques has been
criticised because it fails to consider investment profitability?
Answer
C. Internal rate of return technique |
48
The method of project selection which considers the time value of money in a capital
budgeting decision is accomplished by computing the :
Answer
D. Discounted cash flow
131/2015 8 A
49
A formal legal commitment to extend credit up to some maximum amount over a stated
period of time : 3
Answer
C. Revolving credit agreement
50
Which of these is not a component of the feasibility report?
Answer
A. Profit margin
51
Arrange the following elements of the project cycle in the right order :
Answer
C. Negotiation |
52
Use of which one of the common investment appraisal methods directly promotes wealth
maximisation?
Answer
C. net present value
53
The maximum amount beyond which a company is not allowed to raise : |
|
Answer
D. Nominal capital
54
The work defined at the lowest level of the breakdown structure to estimate as well as
| manage time and cost is called the :
Answer
B. Work package |
55
Which of the following is not a commonly used method of financial appraisal of strategy _
options? |
Answer
D. price/earnings ratio .
56
Which of the following is not one of the types of transactions that occur in the traditional
foreign exchange market?
|
Answer
D. _ virtual transactions
A 9 131/2015
| [P.T.0.1
57
The presence of more fixed cost in the capital structure of a firm indicates :
Answer
B. Operating leverage
-
58
Which of the following costs would be considered a fixed cost?
Answer
B. Depreciation )
59
The cash required during a specific period to meet interest expenses and principal payments |
is referred to as the: |
Answer
B. Debt-Service burden
60
————————— involve the exchange of currency the second day after the date on which the
two traders agree ta the transaction.
Answer
A. Spot transaction
61
Functions of factor exclude :
Answer
B. | Credit rating
62
Another name for open-ended credit : |
Answer
C. Revolving credit
63
Uncollected cheques also referred : |
Answer
D. Uncredited cheques
64
Which of the following is a measure of debt serving capacity of a firm?
Answer
D. Interest coverage ratio .
65
Market in which funds are transferred from those who have excess funds available to those
who have a shortage of funds are called? .
Answer
D. Financial markets
131/2015 | 10 A
66
Finance companies raise funds in the money market by selling :
Answer
A. Commercial paper |
67
The interest rate that equates the present value of the cash flow received from a debt
instrument with its market price today is the :
Answer
C. Yield to maturity
68
The riskiest capital market security is : | .
Answer
B. Common stock
69
Ifa firm sells an option: |
Answer
B. There is a positive cash flow
:
70
Bonds with relatively low risk of default are called : |
Answer
A. Investment grade bond
71
The riskiness of an assets return that results from interest rate changes is called :
Answer
D. Interest — rate risk | |
72
MNC rely mostly on ——-_———— to reduce transaction exposure. |
Answer
A. Currency hedges
73
The forward market is especially well-suited to offer hedging :
, _
Answer
B. Transactions risk exposure
74
The simplest hedging method, which involves the purchase or sale of foreign currency using a
forward contact is the :
Answer
C. Forward hedge
75
The value of a derivative contract is ultimately determined by :
Answer
A. The value of underlying assets
76
An option whose intrinsic value is calculated by comparing the strike price with the average
spot price over the period of the option is a/an:
Answer
D. Asian option |
77
All of the following are hedge against exchange rate risk — except :
Answer
C. Use of spot market
78
As an option approaches its maturity date, its price will converge to :
Answer
D. Its intrinsic value ;
79
An individual selling a commodity or financial instrument can reduce risk by buying a
—_—_—_————- option. ;
Answer
B. Put
80
An increase in the market price of the underlying assets will cause the price of a call
option to: |
Answer
A. Rise |
81
Central Information Commission was formed on:
Answer
A. 2005
82
National Employment Guarantee Scheme inaugurated at :
Answer
C. Bundlapalli
83
In which state of India Sivapuri National Park situated : 3
Answer
B. Madhya Pradesh
| |
84
Sadhujana Paripalana Sangam was formed by : | |
Answer
C. Ayyankali
85
Whois called Bharatha Kesari? :
Answer
A. Mannathu Padmanabhan
86
The drama Puthiya Akasam Puthiya Bhoomi written by : | }
Answer
D. Thoppil Basi
87
Which female leader is known as Jowan of Arch of Kerala?
Answer
D. Akkamma Cheriyan
88
Who'is regarded as Kerala Kalidasan? |
Answer
C. Kerala Varmma Valiya Koyithampuran
'
89
The first women judge in India : |
Answer
D. Annachandy .
90
The idea of constitutional amendment of Indian Constitution taken from which constitution :
Answer
C. South Africa .
91
The Indian President who proclaimed National Emergency in 1975? 3 :
Answer
D. .Fakrudheen Ali Ahmmad
A 13 131/2015
92
Which article of Indian constitution deals about the compulsory and free education to
children up to the age 14? |
Answer
B. Article — 45
93
The Indian Prime Minister who was died in a foreign country?
Answer
A. Lal Bahadur Sastri
94
The Indian National Flag accepted by Indian Constitutional Assembly on :
Answer
A. 1947-July-22
95
Who give Kunchikanna the title ‘Vagbadananda’?
Answer
B. Alathur Swami Sivanandayogi
96
Sree Narayana Guru died on:
Answer
A. 1928-September-20
97
The real name of Brahmananda Sivayogi : .
Answer
D. Karatt Govindamenon
98
The emblom of Indian Rupee accepted on : :
Answer
B. 2010-July-15
99
The leader of Ezhava memorial : : |
_
Answer
C. Dr. Palppu
100
The founder of the newspaper Swadeshabhimani :
Answer
D. Vakkam Abdul Khader Moulavi
131/2015 14 A
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