SFA Mock Test

JavaScript isn't enabled in your browser, so this file can't be opened. Enable and reload.

SFA Mock Test

Level I of SFA Mock Test by All India Valuers Association - RVO

1. The national output is measured at

1 point

a) production prices

b) market prices

c) cost prices

d) wholesale prices

Clear selection

2. Which of the following may not be a part of projected financial statements?

1 point

a) Income Statements

b) Trial Balance

c) Cash Flow Statements

d) Balance Sheets

Clear selection

3. Securities issued by companies are traded in

1 point

a) derivatives market

b) tertiary market

c) primary market

d) secondary market

Clear selection

4. Which of the following is not a cash inflow?

1 point

a) Decrease in debtors

b) Issue of shares

c) Decrease in creditors

d) Sale of fixed assets

Clear selection

5. Who is the authority for registration of valuers under the Companies (Registered Valuers and Valuation) Rules, 2017?

1 point

a) MCA

b) NFRA

c) IBBI

d) NCLT

Clear selection

6. Which of the following is not a prescribed asset class under the Companies (Registered Valuers and Valuation) Rules, 2017?

1 point

a) Enterprise

b) Securities or Financial Assets

c) Plant and Machinery

d) Land and Buildings

Clear selection

7. Which of the following is not eligible to be registered as a valuer?

1 point

a) Registered Partnership Firm

b) Limited Liability Partnership

c) Limited Liability Company

d) Hindu Undivided Family

Clear selection

8. Who determines the amount of claim due to a creditor under the Insolvency and Bankruptcy Code, 2016?

1 point

a) Committee of Creditors

b) Resolution Professional

c) Adjudicating Authority

d) Corporate Debtor

Clear selection

9. Value of a firm is usually based on

1 point

a) the value of debt and equity

b) the value of assets and liabilities

c) the value of debt

d) the value of equity

Clear selection

10. Which one of the following is covered in the valuation report?

1 point

a) Proposed Transaction

b) Related Parties

c) Share Holding Pattern

d) Valuation Methodologies

Clear selection

11. Which of the following valuation methods would most likely not be used for business valuation?

1 point

a) Discounted Cash Flow

b) Net Assets Method

c) Multi-period Excess Earning Method

d) Industry Price Earnings Ratio

Clear selection

12. In time-series analysis, which source of variation can be estimated by the ratio-to-trend method?

1 point

a) Cyclical

b) Trend

c) Seasonal

d) Irregular

Clear selection

13. In case of valuation of firms for takeovers, which of the following provides a better estimate of value?

1 point

a) Cash flows

b) Free cash flows

c) Future cash flows

d) Free cash flow to equity

Clear selection

14. Agency bonds are issued by

1 point

a) local governments

b) national governments

c) quasi-government entities

d) corporates

Clear selection

15. The first step in the Monte Carlo simulation process is to

1 point

a) generate random numbers

b) set up cumulative probability distributions

c) establish random number intervals

d) set up probability distributions

Clear selection

16. What is an intangible asset?

1 point

a) Non-monetary asset with physical substance

b) Monetary asset without physical substance

c) Non-monetary asset without physical substance

d) Monetary asset with physical substance

Clear selection

17. What adjustment is made while using the Discounted Cash Flow method to value cyclical companies?

1 point

a) Normalize earnings

b) Use high discount rate

c) Use bank rate for discounting

d) Use high growth rate

Clear selection

18. An investment entity evaluates the performance of its investments on what value basis.

1 point

a) fair

b) book

c) market

d) use

Clear selection

19. Which of the following statements is true?

1 point

a) Debenture holder is an owner of the company.

b) Debenture holder can get back its money only on the liquidation of the company.

c) A debenture issued at a discount can be redeemed at a premium.

d) A debenture holder receives interest only in the event of profits.

Clear selection

20. A Tribunal makes an order under section 230 of the Companies Act, 2013 sanctioning a compromise or an arrangement in respect of a company. In this context, strike the odd one out:

1 point

a) It will supervise the implementation.

b) It can give order for winding up of the company.

c) It can modify the order or compromise.

d) It can ask for creditors’ responsibility statement.

Clear selection

21. Which statute governs external commercial borrowing?

1 point

a) Foreign Exchange Maximization Act, 1972

b) Foreign Exchange Management Act, 1999

c) Foreign Exchange Minimization Act, 2004

d) Foreign Exchange Regulation Act, 1972

Clear selection

22. STRIPS stands for

1 point

a) Separate Trading of Registered Interest and Principal Shares

b) Segregated Trading of Registered Interest and Principal Securities

c) Separate Trading of Registered Interest and Principal Securities

d) Segregated Trading of Registered Interest and Principal Shares

Clear selection

23. According to RBI Guidelines on Sale of Stressed Assets by Banks, identification of stressed assets beyond a specified value, as may be determined by bank’s policy, for sale is

1 point

a) Top-down

b) Bottom–top

c) Horizontal

d) Vertical

Clear selection

24. Under the SARFAESI Act, 2002, the Central Registrar may allow the filing of the particulars of creation of security interest within next following the expiry of the period of initial thirty days on payment of additional fee.

1 point

a) Ten days

b) Thirty days

c) Twenty-five days

d) Fifteen days

Clear selection

25. The exemption under section 54 of the Income Tax Act, 1961 is available

1 point

a) to the extent of capital gain invested in the house property

b) proportionate to the net consideration price invested

c) to the extent of amount actually invested

d) to the extent of net consideration

Clear selection

Submit

Clear form

This content is neither created nor endorsed by Google. Report Abuse - Terms of Service - Privacy Policy

Forms