Q.1

Which of the following bonds has the greatest interest rate price risk?

  • a 10 year, 5% coupon bond
  • a 5 year, 5% coupon bond
  • a 5 year, 10% coupon bond
  • a 10 year, 10% coupon bond
Q.2

Which of these is an example of eminent domain?

  • a corporator forces public for sell their lands to him
  • a state forces people to sell their fields for building highway
  • Both A & B
  • None of the above
Q.3

The chart of accounts is designed to

  • alphabetized the accounts to make reading easier for its financial statement users
  • summarize the transactions and determine their ending balances
  • meet the information needs of a company and other financial statement users
  • analyse the accounts and organize them in order of dollar amount to simplify the accounting information for users
Q.4

Standard deviation measures which type of risk?

  • Non diversifiable
  • Economic
  • Systematic
  • Total
Q.5

Which of the following is not a direct tax?

  • Sales tax
  • Corporation tax
  • Wealth tax
  • Estate tax
Q.6

Accounts that normally have debit balances are

  • Assets,Expenses,and Common stock
  • Assets,Dividends,and Expenses
  • Assets,Expenses,and Revenues
  • All of the above
Q.7

Select the correct statement regarding fixed costs.

  • Because they do not change, fixed costs should be ignored in decision making.
  • The fixed cost per unit decreases when volume increases.
  • The fixed cost per unit does not change when volume decreases.
  • The fixed cost per unit increases when volume increases.
Q.8

Financial statements are prepared in the following order.

  • Income statement - Balance sheet - Statement of retained earnings
  • Income statement - Statement of retained earnings - Balance sheet
  • Balance sheet - Statement of retained earnings - Income statement
  • Statement of retained earnings - Balance sheet - Income statement
Q.9

Accrual accounting is used because

  • it provides a better indication of ability to generate cash flows than the cash basis.
  • it recognizes revenues when cash is received and expenses when cash is paid.
  • cash flows are considered less important.
  • All of the above
Q.10

The primary purpose of life insurance is to provide

  • Safe investment avenue
  • financial protection to surviving dependents after the death of an insured
  • Tax rebates
  • Wealth accumulation
Q.11

Managerial Accounting is also called

  • Control accounting
  • Management accounting
  • Cost accounting
  • Both B & C
Q.12

Securities and Exchange Board of India (SEBI) is related to

  • Government of India
  • Banks
  • State Government
  • Share Market
Q.13

Which is the most accurate statement about trade?

  • Trade makes some nations better off and others worse off
  • Trading for a good can make a nation better off only if the nation cannot produce that good itself
  • Trade helps rich nations and hurts poor nations
  • Trade can make every nation better off
Q.14

A distinguishing feature of managerial accounting is

  • general-purpose reports
  • very detailed reports
  • quarterly and annual reports
  • external users
Q.15

A debit signifies a decrease in

  • revenues
  • liability
  • owner's equity
  • All of the above
Q.16

Internal controls are concerned with

  • the extent of government regulations
  • preparing income tax returns
  • safeguarding assets
  • only manual systems of accounting
Q.17

A Credit may signify a

  • Increase in the liability account
  • Decrease in an asset account
  • Increase in the capital stock account
  • All of the above
Q.18

Which of these investments may pay dividends?

  • Savings account
  • Stocks
  • Bonds
  • Certificates of deposit
Q.19

What is the main function of international monetary fund  ?

  • Help to solve Balance of Payment problems of member countries
  • Act as private sector lending arm of the World Bank
  • Finance investment loans to developing countries
  • Arrange international deposits from banks
Q.20

The first step in solving an Ethical Dilemma is to

  • identify the alternatives
  • identify an etical situation and ethical issues involved
  • weigh the impact of each alternative on various stakeholders.
  • recognize and analyze the principal elements in the situation.
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