AIIOVF Online Assessment Test-1 for mock test SFA

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This is mock test for preparation of exam

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MEGHA CHETAN AGRAWAL *

Quiz Questions

In time-series analysis, which source of variation can be estimated by the ratio-to-trend method?

1 point

Cyclical

Trend

Seasonal

Irregular

Clear selection

As per SEBI (Share based Employee Benefits) Regulation, 2014, appreciation means the difference between the ______________.

1 point

market price of the share of a company on the date of exercise of stock appreciation right (SAR) or vesting of SAR, as the case may be, and the SAR price.

face value of the share of a company on the date of exercise of stock appreciation right (SAR) or vesting of SAR, as the case may be, and the SAR price.

market price of the share of a company on the date of exercise of share appreciation right (SAR) or vesting of SAR, as the case may be, and the SAR price

face value of the share of a company on the date of exercise of share appreciation right (SAR) or vesting of SAR, as the case may be, and the SAR price.

Clear selection

Which of the following represent the three major categories of risks faced by a business organisation?

1 point

Business risks, personnel risks, budget risks

Project risks, technical risks, business risks

Planning risks, technical risks, personnel risks

Management risks, technical risks, design risks

Clear selection

The exemption under section 54 of the Income Tax Act, 1961 is available ___________.

1 point

to the extent of capital gain invested in the House property

proportionate to the net consideration price invested

to the extent of amount actually invested

to the extent of net consideration

Clear selection

Which of the following capital is not shown in a company`s balance sheet?

1 point

Reserve capital

Authorised Capital

Issued and Subscribed Capital

Called and paid up capital

Clear selection

The formula, long-term debt divided by (long-term debt plus shareholders' equity) determines the __________ of a company.

1 point

Debt ratio

Debt to equity ratio

Capitalisation ratio

Profitability index

Clear selection

Which of the following can be transferred under the Transfer of Property Act, 1882?

1 point

An easement along with the dominant heritage

Political pension

Succession

Stipends allowed to the civil pensioners of the Government

Clear selection

Ind AS 113 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in ________ between market participants at the measurement date.

1 point

an orderly transaction

a quick transaction

a purchase transaction

a sale transaction

Clear selection

Who determines the amount of claim due to a creditor under the Insolvency and Bankruptcy Code, 2016?

1 point

Committee of creditors.

Resolution professional.

Adjudicating authority.

Corporate debtor

Clear selection

Under the Insolvency and Bankruptcy Code, 2016, debts owed to a secured creditor in the event such secured creditor has relinquished security ranks equally with ___________.

1 point

insolvency resolution process costs

workmen’s dues for a period of 24 months prior to liquidation commencement date

wages and any unpaid dues owed to employees other than workmen for the period of twelve months preceding the liquidation commencement date

dues to Central Government

Clear selection

A Tribunal makes an order under section 230 of the Companies Act, 2013 sanctioning a compromise or an arrangement in respect of a company. In this context, which of the following cannot be true?

1 point

It will supervise the implementation

It can give order for winding up of the company

It can modify the order or compromise

It can ask for creditors responsibility statement

Clear selection

Which of the following is not a cash outflow?

1 point

Increase in prepaid expenses

Increase in debtors

Increase in stocks

Increase in creditors

Clear selection

As an independent valuer, the valuer should not charge________fee.

1 point

professional

success

mandate

legal

Clear selection

Salary under section 17(1) of the Income Tax Act, 1961 does not include _____.

1 point

wages

pension

interest

gratuity

Clear selection

If a firm has a P/E ratio of 15, and a ROE of 14 %, what is the market to book value of equity?

1 point

2.1

1.5

1.6

3.0

Clear selection

An analyst is valuing a firm's equity using the ‘Enterprise Value to Revenue Ratio’ of similar firms. Which of the following is not a factor that the analyst should use?

1 point

Revenue growth

EBITDA margins

Expected return

Net Present Value

Clear selection

Which of the following methods is included in ‘asset based approach’ (cost-based approach)?

1 point

Comparable Companies’ Multiple Method

Replacement Method

Earnings Capitalization Method

Discounted Cash Flow Method

Clear selection

Which of the following measures does not take into account the time value of money?

1 point

Payback period

Net present value

Internal rate of return

Discounted cash flow

Clear selection

Which of the following statements is not true regarding Cash and Cash equivalents in a cash flow statement?

1 point

Cash comprises cash on hand and demand deposits with the bank

Cash equivalents are short-term in nature

There is an insignificant risk of change in value of cash equivalents

Cash equivalents are highly illiquid investments

Clear selection

The national output is measured at which of the following price? *

1 point

Production price

Cost Prices

Market Price

Wholesale prices

How is stamp duty paid in transactions where more than one instrument is required?

1 point

Stamp Duty is paid on all the instruments equally

Stamp Duty is paid on any one of the instrument

Stamp duty is paid only on one of the principal instruments and on the balance documents only minimum duty is payable

Stamp duty is paid on ad valorem basis

Clear selection

Which statute governs external commercial borrowing?

1 point

Foreign Exchange Maximization Act, 1972

Foreign Exchange Management Act, 1999

Foreign Exchange Minimization Act, 2004

Foreign Exchange Regulation Act, 1972

Clear selection

Professional independence is a subset of which one of the following pairs of fundamental principles?

1 point

Integrity and due diligence

Integrity and objectivity

Due diligence and professional competence

Objectivity and due diligence

Clear selection

Which of the following is not a conduct most people associate with ethical behaviour?

1 point

Bribing

Negotiating

Advocating

Lobbying

Clear selection

Which of the following requires the need for due diligence considerations?

1 point

selection of statistical samples

selecting and evaluating samples based on judgement

selection of random samples

selection of random variables

Clear selection

Which of the following relation between fiscal deficit (FD) and primary deficit (PD) is correct?

1 point

PD = FD - interest payments

FD = PD - depreciation

FD = PD - interest payments

PD = FD - depreciation

Clear selection

Under the Insolvency and Bankruptcy Code, 2016, fee of the liquidator is paid from the proceeds of sale of ____________of the corporate debtor.

1 point

unencumbered liabilities

liquidation assets

liquidation fund

unencumbered reserves

Clear selection

An investment pays Rs. 300 annually for five years, with the first payment occurring today. The present value (PV) of the investment discounted at a 4% annual rate is approximately ___________.

1 point

1336

1389

1625

1925

Clear selection

Which of the following is not eligible to be registered as a valuer?

1 point

Registered partnership firm

Limited liability partnership

Limited liability company

Hindu undivided family

Clear selection

Karan bought 1000 shares of Infosys Limited at Rs. 910/- from his broker excluding brokerage and taxes however, current market price of that share was Rs. 915/-. In this statement Rs. 915/- reflects ______________.

1 point

fair value of the share

cost of his investment

investment value of the share

price of the share transaction

Clear selection

Which of the following is not a financial service under the Insolvency and Bankruptcy Code, 2016?

1 point

Accepting of deposits

Effecting contracts of insurance

Payment of wages to employees.

Establishing or operating an investment scheme

Clear selection

As per Ind AS 113 which of the following is not a valuation technique?

1 point

Market approach

Cost approach

Income approach

Worth approach

Clear selection

Who is the authority for registration of valuers under the Companies (Registered Valuers and Valuation) Rules, 2017?

1 point

MCA

NFRA

IBBI

NCLT

Clear selection

Which of the following statements is true regarding Ind AS 109?

1 point

The standard applies to employers’ rights and obligations under employee benefit plans

The standard applies to financial instruments including options and warrants

The standard applies to rights and obligations arising out of Insurance contracts

The derivatives embedded in leases

Clear selection

Quantitative easing is an unconventional monetary policy in which a central bank purchase government securities or other securities from the market in order to____.

1 point

rise interest rate and increase the money supply in the economy

lower interest rate and decrease the money supply in the economy

lower interest rate and increase the money supply in the foreign economy

lower interest rate and increase the money supply in the economy

Clear selection

Which of the following would not be included in Valuer`s Engagement Letter?

1 point

Timeline of the engagement

Management`s responsibilities with respect to financial records and accuracy of information

Terms of payment

Management representation

Clear selection

In a SWOT analysis, the difficult cash flow situation of the business will be treated as a _______________.

1 point

strength

opportunity

weakness

threat

Clear selection

An asset is officially appraised and priced on _____.

1 point

verification date

valuation date

report date

effective date

Clear selection

Which of the following valuation methods would most likely not be used for business valuation of a firm/entity?

1 point

Discounted cash flow (DCF)

Net assets method

Multi-period excess earning method

Industry price earnings ratio DCF

Clear selection

‘A’ leases land to ‘B’ on condition that he shall walk a hundred miles in an hour. The lease is _________.

1 point

valid

void

voidable

legal

Clear selection

As per SEBI (ICDR), 2009, which of the following come under qualified institutional buyer:

1 point

A provident fund with minimum corpus of twenty crore rupees.

A provident fund with minimum corpus of twenty-five crore rupees

A provident fund with minimum corpus of fifteen crore rupees.

A provident fund with minimum corpus of sixty-four crore rupees.

Clear selection

‘Economies of Scale’ arises from _______ synergy in Merger and Acquisitions.

1 point

operating

financial

managerial

market

Clear selection

The scope of Ind AS 36 includes impairment of which of the following assets?

1 point

inventories

financial assets classified as subsidiaries

deferred tax assets

assets arising from employee benefits

Clear selection

As per Ind AS 103, accounting for Business Combinations using the acquisition method requires which of the following?

1 point

Identifying the acquirer

Determining the acquisition date

Recognising and measuring the unidentifiable assets acquired

Recognising and measuring any goodwill or bargain purchase

Clear selection

Labour laws, product standards, waste disposal rules etc are all ___________ factors required to be considered while performing a Business Environment Analysis.

1 point

economic

legal

social

cultural

Clear selection

In case of valuation of firms for takeovers, which of the following provides a better estimate of value?

1 point

Cash flows

Free cash flows

Future cash flows

Free cash flow to equity

Clear selection

As per section 40(b) of the Income Tax Act, 1961, up to ____ % per annum simple interest on capital is allowed towards remuneration of working partners.

1 point

Clear selection

Under the SARFAESI Act, 2002, the Central Registrar may allow the filing of the particulars of creation of security interest within _____ following the expiry of the period of initial thirty days on payment of additional fee.

1 point

ten days

thirty days

twenty-five days

fifteen days

Clear selection

As per the RBI (Prudential Framework for Resolution of Stressed Assets) Directions, 2019 banks shall recognise incipient stress in loan accounts, immediately on default, by classifying such assets as __________.

1 point

non-performing account

sub-standard account

standard account

special mention account

Clear selection

Value of a firm is usually based on ________.

1 point

the value of debt and equity

the value of assets and liabilities

the value of debt

the value of equity

Clear selection

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