Interview Test 10 Test 10 Welcome to AADVIKMS! Empowering Finance Careers Connect with top finance professionals and employers for exciting opportunities. Total Number of Questions: 40 Time: 40 Minutes All the best... Kind Regards CMA Madhuri Kashyap & CMA Sandeep Kumar - Founder - International Navodaya Chamber of Commerce Name Email Phone State 1. Which of the following represents the weighted average cost of capital (WACC)?** Cost of equity + cost of debt (E/V) * Ke + (D/V) * Kd * (1 - Tc) - Cost of debt + retained earnings Equity capital + debt capital None 2. What is the primary goal of financial management in a corporation? Maximizing profits Minimizing costs Maximizing shareholder wealth Minimizing risk None 3. Which of the following is NOT a component of working capital? Accounts Receivable Inventory Fixed Assets Accounts Payable None 4. A company’s dividend payout ratio is calculated as: Dividends per share / Earnings per share Dividends per share / Market price per share Net profit / Dividends declared Retained earnings / Dividends per share None 5. The degree of operating leverage measures: Sensitivity of earnings per share to sales Sensitivity of net income to variable costs Sensitivity of operating income to changes in sales volume Sensitivity of sales to fixed assets None 6. In which costing method are fixed manufacturing costs treated as period costs? Absorption costing Variable costing Activity-based costing Job costing None 7. Which of the following costs is NOT relevant in a make-or-buy decision? Fixed overheads Direct materials Direct labor Variable manufacturing costs None 8. A budget that allows for variation in activity levels is called a: Fixed budget Flexible budget Master budget Zero-based budget None 9. Which costing system would a company use if it produces unique products for customers? Job costing Process costing Standard costing Batch costing None 10. Standard cost per unit is calculated by: Adding all actual costs incurred for the unit Dividing actual cost by number of units produced Estimating future costs Summing standard cost of materials, labor, and overhead None 11. Which of the following is a preventive control? Review of financial statements Segregation of duties Physical inventory count Internal audit None 12. The primary objective of an external audit is to: Detect fraud Evaluate internal controls Provide assurance on financial statements Ensure compliance with policies None 13. Which of these is an ethical standard for professional accountants Confidentiality Independence Advocacy All of the above None 14. Internal audits are primarily focused on: Detecting financial fraud Reviewing compliance with internal policies Providing statutory assurance All of the above None 15. In auditing, an adverse opinion means: Financial statements are fairly presented Financial statements are not fairly presented Auditor could not form an opinion Financial statements have some discrepancies None 16. Which of the following is an indirect tax? Corporate income tax Goods and Services Tax (GST) Property tax Income tax None 17. The tax effect of timing differences is shown in financial statements as: Deferred tax Provisional tax Direct tax Current tax None 18. Which income is exempt from tax for individuals? Salaries Agricultural income Business income Rental income None 19. Advance tax is payable when the tax liability is more than: ₹5,000 ₹10,000 ₹20,000 ₹25,000 None 20. Which of these is eligible for deduction under Section 80C of the Income Tax Act? Interest on housing loan Premiums for health insurance Investments in PPF Donations to charitable organizations None 21. Financial statements are prepared based on: GAAP Accrual accounting Cash basis accounting Fair value accounting None 22. The purpose of preparing a trial balance is to: Check accuracy of ledger entries Finalize financial statements Compute net profit Allocate resources None 23. A decrease in prepaid expenses will: Increase profit Decrease profit ncrease liabilities Decrease liabilities None 24. Return on equity (ROE) measures: Profitability of sales Financial leverage Efficiency of asset usage Profitability from shareholders' perspective None 25. An intangible asset with indefinite life is: Amortized Not amortized Depreciated Expensed fully in the year of purchase None 26. Porter’s Five Forces model includes all EXCEPT: Supplier power Buyer power Market segmentation Competitive rivalry None 27. A company’s SWOT analysis includes all EXCEPT: Strengths Weaknesses Objectives Threats None 28. The main objective of Enterprise Risk Management (ERM) is: Financial statement compliance Cost minimization Identifying and managing risks Improving brand value None 29. In business, ‘diversification’ refers to: Expanding product lines in the same market Selling off unprofitable segments Entering new markets with new products Merging with a competitor None 30. A key characteristic of strategic planning is: Short-term focus Continuous revision Emphasis on internal competition Reactive decision-making None 31. The current ratio is calculated as: Current Assets / Current Liabilities Current Liabilities / Total Assets Total Assets / Total Liabilities Current Assets / Total Liabilities None 32. Quick Ratio is also known as: Acid-Test Ratio Debt Ratio Solvency Ratio Efficiency Ratio None 33. Earnings per share (EPS) is calculated as: Net income / Total assets Net income / Average shares outstanding Total dividends / Average shares outstanding Operating income / Sales None 34. Debt-to-equity ratio measures: Profitability Leverage Liquidity Efficiency None 35. Return on assets (ROA) is calculated by dividing: Net income by equity Operating income by total assets Net income by total assets Net profit by sales None 36. Monetary policy is primarily managed by: Government Central Bank Commercial banks Ministry of Finance None 37. Inflation is measured by: GDP growth rate CPI (Consumer Price Index) Exchange rates Stock market indices None 38. Fiscal deficit occurs when: Total revenue exceeds total expenditure Total expenditure exceeds total revenue Exports exceed imports Total revenue equals total expenditure None 39. Exchange rates are determined by: Supply and demand for currency Government policies GDP Inflation only None 40. Which of the following is a lagging economic indicator? GDP Stock market prices Employment rate Business confidence index None Thank you for participating in our test series! We hope it boosted your knowledge and prepared you well for finance job interviews. Keep leveraging what you've learned to build confidence and excel. Wishing you great success in your career journey! Time's upTime is Up!
