Strategic Finance Solved Paper of SCDL Pune - 35

Note: Please tally the answers and verify them from SCDL textbooks as all answers might not be correct. 

Select The Blank
Question	Segment expense includes ________.
Correct Answer	The relevant portion of enterprise revenue that can be allocated on a reasonable basis to a segment
Multiple Choice Single Answer
Question	the amount of working capital required to meet long term, minimum needs is called :-
Correct Answer	Permanent working capital
Select The Blank
Question	The costs should be gathered & allocated within the organisation at the ________ structural layer.
Correct Answer	Lowest possible
Multiple Choice Multiple Answer
Question	The acquiring firm for any M & A will require data about the target firm which will include :-
Correct Answer	Quality of management , Production capabilities , Profitability
Multiple Choice Single Answer
Question	Segment assets are determined after :-
Correct Answer	Deducting related allowances / provisions reported as direct offsets
Multiple Choice Multiple Answer
Question	For M & As, the acquiring firm needs industry data on :-
Correct Answer	Market growth , Nature of competition , Degree of regulation
Select The Blank
Question	Implicit & Explicit costs are included in the ________.
Correct Answer	Price of a product
Multiple Choice Multiple Answer
Question	In a merger decision, the value of a firm depends upon:-
Correct Answer	Earnings , Operating characteristics of acquiring firm , Financial characteristics of acquiring firm
True/False
Question	To `gather costs', means capturing all relevant expenses that pertain to the selected model and processes.
Correct Answer	TRUE
True/False
Question	Segment result is segment revenue less segment expenses.
Correct Answer	TRUE
Multiple Choice Single Answer
Question	The main factor affecting the profits is :-
Correct Answer	The magnitude of sales of the business
True/False
Question	Retained earnings are the most important internal sources of financing the growth of the firm.
Correct Answer	TRUE
Multiple Choice Multiple Answer
Question	The direct costs tier normally only includes the following :-
Correct Answer	The personnel payroll , Supplies , Individual rental equipment
Multiple Choice Multiple Answer
Question	Accounting numbers are not influenced by :-
Correct Answer	Dividend policy , Time span of money , Financial and business risk
Select The Blank
Question	Total risk reduces if operations of combining firms are ________.
Correct Answer	Negatively correlated
Multiple Choice Single Answer
Question	The Public announcement of share buy back has to be made at least :-
Correct Answer	7 Days prior to the commencement of buy back
Multiple Choice Multiple Answer
Question	It is the activity accountant's job to do the following for the existing organisational structure :-
Correct Answer	To define the costs , To refine the costs , To document the costs
Multiple Choice Multiple Answer
Question	Operating economies occur due to indivisibilities of resources like :-
Correct Answer	People , Equipment , Overheads
Select The Blank
Question	The amount to be invested by any single investor in a commercial paper shall not be less than Rs. ________.
Correct Answer	25 lacs
True/False
Question	A change in the method of depreciation is treated as a change in an accounting policy and is disclosed accordingly.
Correct Answer	TRUE
Multiple Choice Single Answer
Question	The development aspect of training in firms focus on :-
Correct Answer	Promotion to higher job levels
Multiple Choice Multiple Answer
Question	The main assumptions for stock repurchase models are as follows :-
Correct Answer	The market is efficient , There is perfect competition in the securities market
Multiple Choice Single Answer
Question	AS 17 is mandatory for all commercial, industrial & business reporting enterprises whose turnover for the accounting period :-
Correct Answer	Exceeds 50 crores
Select The Blank
Question	If the segment result of a segment includes interest or dividend income its segment assets will not include ________.
Correct Answer	Payables
Select The Blank
Question	Economies of scale arises with increase in volume of production leading to________.
Correct Answer	Reduction in the cost of production
Multiple Choice Single Answer
Question		When a change in the method of depreciation is made :-
Correct Answer		Depreciation is recalculated in accordance with the new method
Multiple Choice Multiple Answer
Question		One of the advantages of trade credit is its flexibility i.e. the firm does not :-
Correct Answer		Have to sign a note , Pledge collateral , Adhere to strict payment schedule
Select The Blank
Question		Depreciation is ________ of an asset.
Correct Answer		Loss of value
Select The Blank
Question		There is a ________ relationship between the number of employees & the use of operating supplies.
Correct Answer		Natural
Multiple Choice Single Answer
Question		If a firm opts for restrictive policy then the investments in current assets is :-
Correct Answer		Low
Multiple Choice Single Answer
Question		When the seller asks for the payment before making the delivery in order to avoid all risks it is known as :-
Correct Answer		Cash before delivery
True/False
Question		An activity model is a tool to assist in understanding & defining the organisation.
Correct Answer		TRUE
True/False
Question		It is possible to place a single value for the acquired firm.
Correct Answer		FALSE
Multiple Choice Multiple Answer
Question		In the disclosures in financial statements, there are significant restrictions on :-
Correct Answer		The right of ownership , Realisability of investments , The remittance of income & proceeds of disposal
Multiple Choice Single Answer
Question		The depreciable assets are assets which are expected to be used :-
Correct Answer		During more than 1 accounting period
True/False
Question		Short term financing is meant for funding working capital of a company.
Correct Answer		TRUE
Multiple Choice Multiple Answer
Question		The existence of significant influence by an investor is usually evidenced in the following ways :-
Correct Answer		Participation in policy making processes , Material transactions between the investor & the investee , Interchange of managerial personnel
Multiple Choice Multiple Answer
Question		The important steps involved in the analysis of mergers & acquisitions are:-
Correct Answer		Planning , Searching & screening , Financial evaluation
Multiple Choice Multiple Answer
Question		The financial managers of a company consume a great deal of their time in activities like :-
Correct Answer		Monitoring the investment in inventories , Negotiating favourable credit terms , Administrating Accounts receivables
True/False
Question		Dividends increase the current returns for shareholders.
Correct Answer		TRUE
True/False
Question		Book value is based on the balance sheet value of owner's equity.
Correct Answer		TRUE
Select The Blank
Question		the commercial paper may be issued in the multiples of ________.
Correct Answer		5 lakhs
Select The Blank
Question		In presenting the reconciliation segment result should be reconciled to ________.
Correct Answer		Enterprise net profit or loss
Select The Blank
Question		Another meaning of bear hug is ________.
Correct Answer		Hostile takeover
Multiple Choice Single Answer
Question		Funds borrowed for a period of 1 year or less is called :-
Correct Answer		Short term finance
Multiple Choice Multiple Answer
Question		Financial statements classify the following into separate categories :-
Correct Answer		Fixed assets , Investments , Current assets
Multiple Choice Single Answer
Question		Any addition or extension to an existing asset which retains a separate identify & is capable of being used after the existing asset is disposed of :-
Correct Answer		Is depreciated independently
Multiple Choice Single Answer
Question		In value of assets approach the value of which of the following should be deducted to calculate the net assets available to the equity shareholders :-
Correct Answer		Outstanding preference shares
Multiple Choice Single Answer
Question		What is a very important factor in any kind of merger?
Correct Answer		Exchange ratio
Multiple Choice Single Answer
Question		When the working capital is less than its peak level :-
Correct Answer		The surplus is invested in liquid assets