Management MCQs

In relevance concepts, relevant revenues are also termed as

by
A. parallel revenues
B. abnormal revenues
C. expected future revenues
D. serial revenues
✅ The correct answer is option C.
In relevance concepts, relevant revenues are also termed as expected future revenues. The revenue recognition principle is a cornerstone of accrual accounting together with the matching principle. They both determine the accounting period in which revenues and expenses are recognized. According to the principle, revenues are recognized when they are realized or realizable, and are earned (usually when goods are transferred or services rendered), no matter when cash is received.

Manpower inventory is

by
A. To find out how manpower is to be utilized
B. To prepare inventory for scheduling manpower
C. The data collected about the present employees of an organization
D. The data as calculated by demand forecast and compared with inventory in respect of manpower
✅ The correct answer is option B.
Manpower inventory is to prepare inventory for scheduling manpower. In manpower inventory, the items are intangible. It involves cataloguing the characteristics of personnel in the organisation, besides counting their number.

Contribution margin per unit is divided by selling price of product to calculate

by
A. selling margin percentage
B. cost margin percentage
C. discount percentage
D. contribution margin percentage
✅ The correct answer is option D.
Contribution margin per unit is divided by selling price of product to calculate contribution margin percentage. The contribution margin ratio is the difference between a company’s sales and variable expenses, expressed as a percentage. The total margin generated by an entity represents the total earnings available to pay for fixed expenses and generate a profit.

Which of following is not a means in which agency troubles can be lessen through corporate rule?

by
A. Executive compensation
B. Threat of hostile takeover
C. Acquisition of a foreign subsidiary
D. Monitoring by large shareholders
✅ The correct answer is option C.
Acquisition of a foreign subsidiary is not a means in which agency troubles can be lessen through corporate rule.

Debentures that are considered as junior bonds as compared to debentures and mortgage bonds are classified as

by
A. subordinated debentures
B. ordinate debentures
C. expansion debentures
D. premium debentures
✅ The correct answer is option A.
Debentures that are considered as junior bonds as compared to debentures and mortgage bonds are classified as subordinated debentures. Subordinated debenture is a bond classified lower than more senior debt in the event of a default. This means that the holders of more senior securities are paid first, before any residual funds are made available to the holder of the subordinated debenture.

Deposit issued by bank, usually negotiable and have specific maturity date and interest rate is classified as

by
A. indirect certificate
B. direct certificate
C. negotiable certificate
D. deposit certificate
✅ The correct answer is option C.
Deposit issued by bank, usually negotiable and have specific maturity date and interest rate is classified as negotiable certificate. A negotiable certificate of deposit, or CD, is a marketable receipt for funds deposited in a bank for a specified period at a specified rate of interest.

Expected worth is the

by
A. inverse of standard deviation
B. correlation between a security
C. same as discrete probability distribution
D. weighted average of all possible outcomes
✅ The correct answer is option D.
Expected worth is the weighted average of all possible outcomes. The expected value (EV) is an anticipated value for an investment at some point in the future. In statistics and probability analysis, the expected value is calculated by multiplying each of the possible outcomes by the likelihood each outcome will occur and then summing all of those values.