CA Final AFM MCQs

CHAPTER 1: FINANCIAL POLICY AND CORPORATE STRATEGY

CHAPTER 2: RISK MANAGEMENT

CHAPTER 3: ADVANCED CAPITAL BUDGETING DECISIONS

CHAPTER 4: SECURITY ANALYSIS

CHAPTER 4: SECURITY ANALYSIS

Question 1:
Which of the following factor affects industry analysis?
A) Product Lifecycle B) Government Attitude
C) State of Competition in the Industry D) All of these

Question - 2:
As per the Dow Jones Theory the Secondary movement ofstock prices last from
A) One year to three years. B) Three weeks to three months.
C) Day to day. D)None of these

Question – 3:
An efficient capital market is one in which
A) Taxes are irrelevant.
B) Security prices reflect available information
C) Securities always offer a positive rate of return to investors
D) Security prices are guaranteed (by the SEBI) to be fair.

Question - 4:
Which of the following technique is not used for economic analysis?
A) Barometer/Indicator Approach B) Economic Model Building Approach
C) Mixed Forecasting D) Economic Model Building Approach

Question - 5:
Which factor significantly influences the demand in consumer products industries?
A) Interest rate B) Discount rate
C) Inflation rate D) None of the above

Question - 6:
Which of the following is a drawback of the Anticipatory Surveys technique used in economic
analysis?
A) Survey results guarantee that intentions surveyed would materialize.
B) They are regarded as forecasts per se, as there can be a consensus approach by the investor
for exercising his opinion.
C) Both of (a) and (b)
D) None of the above

Question – 1 : P owns a controlling investment of 70% of S. During the year, P sold goods to S for Rs
60,000 at cost plus 20%. At the year end, S still had half of the goods in their inventory. P’s total inventory
at the year-end was Rs 120,000, and S’s total inventory was Rs 80,000. How much inventory should be
recognised in Ps consolidated statement of financial position prepared in accordance with IND AS?
A : Rs 1,95,000
B : Rs 2,00,000
C : Rs 1,76,000
D : Rs 1,58,500

Question - 2 : On 1st March 20X2, Quixote Ltd acquired 30% of the shares of Tintin Ltd. The investment
was accounted for as an associate in Quixotes consolidated financial statements. Both Quixote and
Tintin have an accounting year ending at 31st October 20X2. Quixote Ltd has no other investments in
associates. Net profit for the year in Tintines income statement for the year ended 31st October 20X2
was Rs. 2,30,000. It declared and paid dividend of Rs.100,000 on 1st July 20X2. No other dividends were
paid in the year.
What amount will be shown as an inflow in respect of earnings from the associate in the consolidated
cash flow statement of Alpha for the year ended 31st October 20X2?
A : Rs. 20,000
B : Rs. 26,000
C : Rs. 30,000
D : Rs. 46,000