Human Resource Management (HRM) MCQS

Multiple choice Questions on Human Resource Management. Practice for fpsc ppsc exams

Which of the following would increase the break-even output level?

A. Lower fixed costs

B. Higher selling prices per unit

C. Higher production costs per unit of output

D. Lower output level

Correct answer is: C. Higher production costs per unit of output

The net working capital of a firm measures its:

A. Profitability

B. Liquidity

C. Credibility

D. Solvency

Correct answer is: B. Liquidity

What is the effect of a stock split on shareholders’ equity?

A. Increases retained earnings

B. Decreases total equity

C. Increases share capital

D. No change in total equity

Correct answer is: D. No change in total equity

What is the purpose of a cash budget?

A. Forecast cash inflows and outflows

B. Calculate profit

C. Estimate depreciation

D. Determine inventory levels

Correct answer is: A. Forecast cash inflows and outflows

Which statement is considered the accountant’s “snapshot” of a firm’s accounting value as of a particular date?

A. Income Statement

B. Balance Sheet

C. Cash Flow Statement

D. Retained Earnings Statement

Correct answer is: B. Balance Sheet

The number of units in excess of the break-even point is known as the:

A. Net contribution

B. Area of profit

C. Margin of safety

D. Volume of production

Correct answer is: C. Margin of safety

Which of the following is NOT considered a credit management decision?

A. Financing your house with a mortgage

B. Using credit cards to pay utility bills

C. Obtaining a bank loan to purchase a boat

D. Investing money in a bank deposit

Correct answer is: D. Investing money in a bank deposit

Which ratio is used to evaluate profitability?

A. Quick ratio

B. Return on Equity

C. Debt ratio

D. Inventory turnover

Correct answer is: B. Return on Equity

Which of the following is a determinant of dividend policy?

A. Liquidity

B. Legal constraints

C. Growth opportunities

D. All of the above

Correct answer is: D. All of the above

The appropriate objective of an enterprise is:

A. Maximization of sales

B. Maximization of owner’s wealth

C. Maximization of profits

D. Minimization of costs

Correct answer is: B. Maximization of owner’s wealth