Page 326 - GMAT 2017b_Neatb

Accounting Practice Test

(D) The project is an important part of a company’s 101. If an investment appraisal exercise is undertaken
strategic planning. using the techniques of discounted cash flow, which
of the following statements correctly shows the
99. Which one of the following is not a technique used reasoning behind the preferred option?
for capital investment appraisal? (A) The option shows the highest cash inflow.
(A) The payback method. (B) The option recoups the initial investment in the
(B) The accounting rate of return method. shortest possible time.
(C) Discounted cash flow techniques. (C) The option has the highest positive net present
(D) Capital budgeting. value.
(D) The option generates profits more quickly than
the other options.
100. Which of the following factors is irrelevant when
using the payback method?
(A) Depreciation of the initial asset acquired.
(B) The annual financial benefit arising from the
project.
(C) The total initial cost of the investment.
(D) The incidence of cash flows arising from the
project.

1. D 11. C 21. C 31. C 41. D 51. C 61. C 71. C 81. B 91. A

2. D 12. D 22. A 32. B 42. C 52. D 62. D 72. C 82. C 92. D

3. B 13. D 23. B 33. C 43. C 53. C 63. D 73. C 83. C 93. A

4. C 14. B 24. C 34. C 44. D 54. D 64. A 74. A 84. B 94. A

5. B 15. C 25. C 35. A 45. D 55. A 65. B 75. B 85. A 95. B

6. A 16. B 26. B 36. A 46. D 56. C 66. C 76. C 86. B 96. B

7. A 17. A 27. A 37. A 47. C 57. B 67. A 77. D 87. D 97. C

8. B 18. B 28. C 38. C 48. B 58. A 68. D 78. B 88. B 98. B

9. C 19. D 29. D 39. D 49. B 59. D 69. C 79. D 89. D 99. D

10. C 20. B 30. A 40. B 50. C 60. C 70. D 80. D 90. D 100.A

101. C

Refer to Page 254 - 258 of Master Job Aptitude

Test Workbook 2014 For detailed Explanation
to the above answer key.

329