Correct Answer:
C. 4 years
Payback = 100,000 / 25,000 = 4 years.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
An investment of Rs. 100,000 generates equal annual cash inflows of Rs. 25,000. The payback period is:
Related MCQs
The Auditor-General's functions regarding the audit of accounts of the Federation and the Provinces are given in:
A.
Article 3
B.
Article 48
C.
Article 169
D.
Article 215
Correct answer is:
C. Article 169
Do you agree with this answer?
Professional skepticism means the auditor:
A.
Maintains a questioning mind and critically assesses audit evidence
B.
Assumes management is dishonest
C.
Accepts management explanations without verification
D.
Avoids communicating with management
Correct answer is:
A. Maintains a questioning mind and critically assesses audit evidence
Do you agree with this answer?
Net profit is Rs. 50,000 and sales are Rs. 400,000. The net profit margin is:
A.
8%
B.
20%
C.
12.5%
D.
125%
Correct answer is:
C. 12.5%
Do you agree with this answer?
A cost driver is:
A.
A factor that causes the cost of an activity to change
B.
A person who drives the delivery vehicle
C.
A fixed cost per unit
D.
A sunk cost
Correct answer is:
A. A factor that causes the cost of an activity to change
Do you agree with this answer?
In zero-based budgeting, managers must:
A.
Add a fixed percentage to last year's budget
B.
Justify every budgeted item from zero in each budget period
C.
Use only last year's figures
D.
Avoid preparing a budget
Correct answer is:
B. Justify every budgeted item from zero in each budget period
Do you agree with this answer?
Total variable cost:
A.
Remains constant regardless of activity
B.
Changes in direct proportion to changes in activity level
C.
Decreases as activity increases
D.
Is always zero
Correct answer is:
B. Changes in direct proportion to changes in activity level
Do you agree with this answer?
Leave a Reply