Department of Management Sciences

PhD Management Sciences

Entry Test

Dated: _________________________________________________

Name of Candidate:________________________________________

Father Name______________________________________________

Signature:_________________________________________________
 RIPHAH INTERNATIONAL UNIVERSITY
Faisalabad Campus
DEPARTMENT OF MANAGEMENT SCIENCES
Entry Test, PhD Management Sciences Spring 2023

Time Allowed: 120 Minutes Marks: 100

Name: _________________ Signature: _______________ Date: _______

Note: Encircle the correct option and return to invigilator within time allowed. Cutting and
overwriting is not allowed.

1. Which one of the following is a specialized branch of accounting that keeps track of a
company’s transactions?
A. Cost accounting
B. Management accounting
C. Financial Accounting
D. Corporate Accounting

2 Which of the following are the components of financial statements?

A. profit and loss account and balance sheet
B. cash flow and fund flow statement
C. notes and schedules
D. All of above

3. Which of the following is not a primary source of long-term debt financing?

A. Accounts payable
B. Notes payable
C. Leases
D. Bonds

4. Trademark, Copyrights & Patents are _____ assets.

A. Intangible
B. Fixed
C. Current
D. Tangible
5. Concession OR deduction allowed by a trader on list price of a product on
spot of sale, is called.
A. Cash Discount
B. Discount Allowed
C. Trade Discount
D. Discount Received

6. In Accounting Equation income earned and received in cash is recorded as

A. Increase in Cash and increase in Capital
B. Increase in Cash and increase in Creditors
C. Increase in Cash and increase in Debtors
D. None of Above

7. Which of the following is correct.

A. Capital = Assets + Liabilities
B. Assets – Capital = Liabilities
C. Liabilities = Capital + Assets
D. All above

8. Collection of accounts is called.

A. Balance Sheet
B. Income Statement
C. Ledger
D. Journal

9. When goods are lost by fire which account will be credited.

A. Purchases
B. Loss by fire
C. Sales
D. Drawings

10. In Accounting Equation income earned but not received is recorded as.
A. Increase in Cash and increase in Capital
B. Increase in Cash and increase in Creditors
C. Increase in Capital and increase in Debtors
D. None of Above
11. For purchase of machinery on credit, following journal entry will be passed.
A Machinery- debit and accounts payable- credit
B. Merchandise- debit and accounts payable- credit
C. Asset debit- and accounts payable- credit
D. Machinery- debit and cash- credit

12. When goods are given as donation which account will be credited.
A. Sales
B. Purchases
C. Donation
D. Drawings

13. ___ is the residual interest of owners in assets over liabilities.

A. Expenses
B. Income
C. Equity
D. None of the above

14. Variable costing is also called

A. Direct costing
B. Absorption costing
C. Both a & b
D. None of the above

15. Capital required to maintain routine operations is called

A. Working Capital
B. Fixed Capital
C. Reserved Capital
D. All of the above

16. What does financial leverage measure?

A) No change with EBIT and EPS
B) The sensibility of EBIT with % change with respect to output
C) The sensibility of EPS w.r.t % change in the EBIT level
D) % variation in the level of production
17. Which type of risk is avoidable.
A) Total risk
B) Systematic risk
C) Downside risk
D) Un systematic risk

18. ___________ Refers to the sensitivity of the stock to the market as a whole.
A) Beta
B) Alpha
C) Capital market line
D) Security Market line

19. A line that describes the relationship between an individual security's returns and
returns on the market portfolio.
A) Security Market line
B) Capital Market line
C) Characteristics line
D) None of above

20. To compute the required rate of return for equity in a company using the CAPM, it is
necessary to know all of the following EXCEPT:
A) the risk-free rate.
B) the beta for the firm.
C) the market return expected for the time period.
D) the earnings for the next time period.

21. _________ is the ease with in which anything can be converted into cash.
A) Liquidity
B) Leverage
C) Cash flow
D) Current Assets

22. The rate at which the NPV of cash inflow becomes equal to the NPV of cash outflow is
called
A) Discounted rate
B) IRR
C) Hurdle rate
D) Marginal rate
23. _________ is the ratio between the present value of cash inflows and the present value
of cash outflows (initial investment).
A) Payback period
B) Net present value
C) The Profitability Index (PI)
D) None of above.

24. The risk of any investment is measured by

A) Standard deviation
B) Correlation
C) Co efficient of variation
D) None of above

25. In Islamic finance, a contract where one party invests the money while the other party
works is called
A) Musharakah
B) Murabahah
C) Ijarah
D) Mudarabah