Correct Answer:
A. NPV
NPV measures the absolute increase in shareholder wealth.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
When NPV and IRR give conflicting rankings for mutually exclusive projects, the preferred criterion is generally:
Related MCQs
The Public Account of the Federation is used for:
A.
Paying salaries only
B.
Moneys received by the Government other than the Consolidated Fund, such as deposits and trust funds
C.
Voting on the budget
D.
Collecting customs duty
Correct answer is:
B. Moneys received by the Government other than the Consolidated Fund, such as deposits and trust funds
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Under the ISAs, analytical procedures are required to be performed at which stages of the audit?
A.
Only when fraud is suspected
B.
Only during the interim visit
C.
Risk assessment and the overall review near the end of the audit
D.
Only for listed companies
Correct answer is:
C. Risk assessment and the overall review near the end of the audit
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IPSAS 1 deals with:
A.
Presentation of financial statements
B.
Inventories
C.
Leases
D.
Borrowing costs
Correct answer is:
A. Presentation of financial statements
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A favorable cost variance means that:
A.
Actual cost is higher than standard cost
B.
Actual sales are lower than budgeted sales
C.
Actual cost is lower than standard cost
D.
Standard cost is wrong
Correct answer is:
C. Actual cost is lower than standard cost
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Using the Gordon growth model, next year's dividend is Rs. 6, the required return is 12% and growth is 4%. The share price is:
A.
Rs. 50
B.
Rs. 75
C.
Rs. 37.5
D.
Rs. 150
Correct answer is:
B. Rs. 75
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Total debt is Rs. 400,000 and total equity is Rs. 200,000. The debt-to-equity ratio is:
A.
0.5
B.
2.0
C.
1.5
D.
3.0
Correct answer is:
B. 2.0
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