Finance for Professionals

What is the primary focus of economics as a field of study?

• Production and distribution of goods and services

• Managing personal finances

• Understanding historical events

• Governing public policies

Which institution is primarily responsible for formulating monetary policy in India?

• Ministry of Finance

• Reserve Bank of India (RBI)

• Securities and Exchange Board of India (SEBI)

• Indian Economic Service (IES)

What is one of the primary tools used by the RBI to control inflation?

• Fiscal stimulus

• Interest rate adjustments

• Export promotion

• Taxation policy

Which of the following is NOT a primary function of finance in an organization?

• Production planning

• Capital investment decisions

• Budgeting

• Risk management

What is the main difference between accounting and auditing?

• Accounting focuses on recording transactions; auditing verifies the accuracy of financial records

• Auditing involves managing company funds, while accounting does not.

• Accounting is only concerned with taxes; auditing is about profits

• There is no difference; both terms are interchangeable.

Which of the following is considered a capital expenditure?

• Payment of employee salaries

• Purchase of raw materials

• Acquisition of machinery

• Utility bills payment

Which of the following is a source of funds for a business?

• Purchase of inventory

• Loan obtained from a bank

• Payment of dividends

• Utility bill payment

Under accrual accounting, when is revenue recognized?

• When cash is received

• When the product is shipped

• When the revenue is earned, regardless of cash receipt

• At the end of the fiscal year

Which of the following ensures accuracy in double-entry bookkeeping?

• Each transaction affects only one account

• The trial balance is always zero

• Every transaction is recorded with equal debits and credits

• Only revenue transactions are recorded

What is the formula for calculating Return on Investment (ROI)?

• Total Revenue / Total Expenses

• Profit / Investment

• Net Income / Total Assets

• Gross Profit / Sales