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NAT – IIM Finance & Accounting (Management Sciences Group)

NAT-IIM Test is for Students Who have Completed their 14 Years Education in Management Sciences and are looking for affirmation in College/University for Masters Degree


Finance & Accounting Sample Questions

21.What is customer value?
a) Ratio between the customer’s perceived benefits and the resources used to
obtained these benefits.
b) Excess of satisfaction over expectation.
c) Post purchase dissonance
d) None of the above.

22: The cost of capital method includes
a) Dividend yield method
b) Earning yield method
c) Dividend yield + growth in dividend method
d) All of the above

23.Which method does not consider the time value of money
a) Net present value
b) Internal Rate of Return
c) Average rate of return
d) Profitability Index

24. Risk in capital budgeting implies that the decision maker knows _ of the cash
a) Variability
b) Certainty
c) Probability
d) None of these

25. Cost of capital is helpful in corporative analysis of various
a) Source of Finance
b) Source of Services
c) Source of material
d) Product


(21) Ratio between the customer’s perceived benefits and the resources used to
obtained these benefits.
(22) All of the above
(23) Average rate of return
(24) Probability
(25) Source of Finance

26. Which of the following is not included in the assumption on which Myron
Gorden proposed a model on Stock valuation
a) Retained earning the only source of financing
b) Finite Life of the firm
c) Taxes do not exist
d) Constant rate of return on firms investment.

27. Examine the following statements.
(i) Payback period method measure the true profitability of a project.
(ii) Capital Rationing and capital budgeting mean the same thing.
(iii) Internal Rate of Return and Time Adjusted rate of Return are the same thing.
(iv) Rate of Return takes into account the time value of money.
a) (i), (ii) and (iii) are correct.
b) (ii) and (iii) are correct.
c) Only (iii) is correct.
d) All (i), (ii), (iii) and (iv) are false.

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28. Which is called as Dividend Ratio Method?
a) Dividend Yield Method
b) Debt Equity Method
c) Asset Method
d) Equity Method

29. If the current ratio is 2: 1 and working capital is Rs. 60,000, What is the value of
the current assets?
a) Rs. 60,000
b) Rs. 1,00,000
c) Rs. 1,20,000
d) Rs. 1,80,000

30. Which of the following has the highest cost of capital?
a) Loans
b) Equity shares
c) Bonds
d) Preference shares


(26) Finite Life of the firm
(27) (i), (ii) and (iii) are correct.
(28) Dividend Yield Method
(29) Rs. 1,20,000
(30) Equity shares

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