MBA/MBA Accounting MCQ Question Set 5 Sample Test,Sample questions

Question:
A Bond has a $1,000 Face Value, a Market Price of $1,115, and pays interest payments of $ 90 every year. What is the coupon rate?

1.4.50 %

2.6.75 %

3.7.39 %

4.9.00 %


Question:
A bond with a $1,000 face value and an 8 percent annual coupon pays interest semi-annually. The bond will mature in 15 years. The nominal yield to maturity (i) is 11 percent. What is the price of the bond today?

1.$ 784.27

2.$ 781.99

3.$ 1,259.38

4.$ 739.19


Question:
Assume that the interest rate is greater than zero. Which of the following cash-inflow streams totalling Rs.1, 500 would you prefer? The cash flows are listed in order for Year 1, Year 2, and Year 3 respectively.

1.Rs.700; Rs.500 and Rs.300

2.Rs.300; Rs.500 and Rs.700

3.Rs.500; Rs.500 and Rs.500

4.Any of the above, since they each sum to Rs.1,500


Question:
Carrying cost always calculate on

1.Inventory cost

2.Ordering cost

3.Purchase cost

4.EOQ


Question:
Convertible debt is debt that

1.The issuing firm can pay off early

2.The bondholder can sell back to the firm at a guaranteed price

3.The bondholder can convert into shares

4.all of above


Question:
Creditors turnover ratios comes under the category of

1.Activity ratios

2.Asset management ratios

3.All of the above

4.None of the above


Question:
Dividend is approved by the shareholder in the ______________ at the recommendation of the directors.

1.Annual general meeting

2.Director meeting

3.Statutory meeting

4.Special meeting


Question:
Financing decision determines

1.Current asset

2.Fix asset

3.Equity

4.Mix of finance


Question:
Fixed-based method is the subcategory of which of the following analysis.

1.Ratio analysis

2.Vertical analysis

3.Horizontal analysis

4.None of the above


Question:
Horizontal analysis is also called

1.Ratio change analysis

2.Common size analysis

3.Trend analysis

4.Ratio analysis


Question:
If gross profit is Rs 5,000 and the net profit is 25% of the gross profit the expenses must be

1.Rs 3,750

2.Rs 1,250

3.Rs 4,150

4.Rs 6,250


Question:
If you have to judge a project from its NPV, you will select the one with the ________

1.Lowest NPV

2.Highest NPV

3.NPV cannot judge the project

4.Information is not enough


Question:
If you want to deposit money into bank, what will be yours choice?

1.Compounding annually

2.Compounding Semi-annually

3.Compounding monthly

4.Compounding daily


Question:
In the Balance Sheet amount of total Assets is Rs.10 million, Current Liabilities Rs.5 million and Owner Equity are Rs.2 million. What is the Long term Debt-to-Equity Ratio?

1.1 : 1

2.1.5 : 1

3.2 : 1

4.None of the above


Question:
In the Balance Sheet of a firm, the Total Debt-to-Equity Ratio is 2:1.The amount of Long Term and Short Term Sources are Rs.12 billion. What is the amount of owner’s Net Worth of the firm?

1.Rs.18 billion

2.Rs.6 billion

3.Rs.4 billion

4.Rs.2 billion


Question:
Income statement comes under the category of

1.Point in time statement

2.Period statement

3.Flow statement

4.Both b & c


Question:
Interest paid (earned) on both the original principal borrowed (lent) and previous interest allowed (earned) is often referred to as ______________.

1.Compound interest

2.Double interest

3.Simple interest

4.Present value


Question:
Interest paid (earned) on only the original principal borrowed (lent) is often referred to as ______________.

1.Compound interest

2.Simple interest

3.Present value

4.Future value


Question:
Life of security simply refer to

1.Yield

2.Liquidity

3.Maturity

4.Safety


Question:
Oliver Incorporated has a current ratio equal to 1.6 and a quick ratio equal to 1.2. The company has $2 million in sales and its current liabilities are $1 million. What is the company’s inventory turnover ratio?

1.5.0

2.5.2

3.5.5

4.6.0


Question:
Pension fund and insurance obligation is an example of

1.Annuities

2.Perpetuity

3.Perpetuity Consol

4.Securities


Question:
PV of lump sum is simply termed as current value ofor

1.Present payment

2.Future payment

3.Annuity payment

4.Discount payment


Question:
Ratio of present value of project’s future net cash flows to projects initial cash flow is

1.Profitability index

2.Internal rate of return

3.Net present value

4.Average rate of return


Question:
Share and bonds floats in _______

1.Money market

2.Capital market

3.Commercial bank

4.Equity market


Question:
The Bailey Brothers want to issue 20-year, zero coupon bonds that yield 9 percent. What price should it charge for these bonds if the face value is $1,000?

1.$ 157.25

2.$ 163.70

3.$ 178.43

4.$ 194.49


Question:
The financial ratio measured as EBIT/Interest expense is known as the firm's

1.Profit margin

2.Return on assets

3.Interest coverage

4.Earnings before interest and taxes (EBIT)


Question:
The goal of fundamental analysts is to find securities

1.Whose intrinsic value exceeds market price

2.With a positive present value of growth opportunities

3.With high market capitalization rates

4.All of the above


Question:
The higher the Future Value (FV) of the payment, the higher will be the:

1.Discount rate

2.Present value

3.Liquidity

4.Cost of borrowing


Question:
The ______________ is responsible for accounting, maintaining and auditing of the accounts.

1.Shareholders

2.Treasurer

3.Controller

4.Board of Directors


Question:
There are ______________ types of financial statements analysis

1.1

2.2

3.3

4.4


Question:
Those liabilities which arise only on the happening of some event are called

1.Current liabilities

2.Outstanding liabilities

3.Deferred liabilities

4.Contingent liabilities


Question:
What are the earnings per share (EPS) for a company that earned Rs.100, 000 last year in after-tax profits, has 200,000 common shares outstanding and Rs.1.2 million in retained earning at the year end?

1.Rs.1.00

2.Rs. 6.00

3.Rs. 0.50

4.Rs. 6.50


Question:
What are the three interrelated areas of finance?

1.Financial markets, option and forwards

2.Investment, Financial management and Money & capital markets

3.Banking, financial institutions and swap currency

4.all of above


Question:
What type of long-term financing most likely has the following features: (1) it has an infinite and finite life (2) it pays dividends, and (3) its cash flows are expected to be a constant annuity stream.

1.Long-term debt

2.Preferred stock

3.Common stock

4.None of the given option


Question:
When bonds are issued, under which of the following category the value of the bond appears?

1.Equity

2.Fixed assets

3.Short term loan

4.Long term loan


Question:
When the market's Required Rate of Return for a particular Bond is equal to its Coupon Rate, the Bond is selling at

1.Premium

2.Discount

3.Par

4.None


Question:
Which group of ratios shows the extent to which the firm is financed with debt?

1.Liquidity ratios

2.Debt ratios

3.Coverage ratios

4.Profitability ratios


Question:
Which of the following affects the price of the bond?

1.Market interest rate

2.Required rate of return

3.Interest rate risk

4.All of the given options


Question:
Which of the following best represents the total inventory costs, T, where S is total usage of the inventory item for the period, Q is the q

1.T = C (Q/2) + O (S/Q)

2.T = SQRT [2 (O) (S) / C]

3.T = SQRT [2 (C) (S) / O

4.T = C (S/Q) + O (Q/2)


Question:
Which of the following is NOT an example of hybrid equity?

1.Convertible bonds

2.Convertible debenture

3.Common shares

4.Preferred shares


Question:
Which of the following is not component of financial report?

1.Balance sheet

2.Notes of the account

3.Comparative figure of previous period

4.None of the given option


Question:
Which of the following is NOT the present value of the bond?

1.Intrinsic value

2.Market price

3.Fair price

4.Theoretical price


Question:
Which of the following is the activity which finance people are involved

1.Investing decisions

2.Marketing decisions

3.Promotion decisions

4.Non of Above


Question:
Which of the following statements is most correct?

1.One of the ways in which firms can mitigate or reduce agency problems between bondholders and stockholders is by increasing the amount of debt in the capital structure.

2.Managerial compensation can be structured to reduce agency problems between stockholders and managers.

3.All of above statements are incorrect

4.All of the statements above are correct


Question:
_____ is the set of possible values that a random variable can assume and their association probabilities of occurrence.

1.Expected Rate of Return

2.Probability Distribution

3.Variance

4.Standard deviation


Question:
______ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.

1.Financial management

2.Profit maximization

3.Agency theory

4.Social responsibility


Question:
______ Ratios are used to measure a firm’s ability to meet short-term obligations.mpor

1.Asset management ratios

2.Debt management ratios

3.Liquidity ratios

4.Equity ratios


Question:
______ tells us after how much time period the amount of money will become double.

1.Real interest rate

2.Nominal interest rate

3.Rule of 72

4.Time value of money


Question:
_______ means value at some future time of a present amount of money evaluated at a given interest rate.

1.Compounding

2.Discounting

3.Nominal rate

4.Continuous rate


Question:
______________ are analysts who use information concerning current and prospective profitability of firms to assess the firm's fair market value.

1.Credit analysts

2.Fundamental analysts

3.Systems analysts

4.Technical analysts


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  3. MBA Accounting MCQ Question Set 3
  4. MBA Accounting MCQ Question Set 4
  5. MBA Accounting MCQ Question Set 5
  6. MBA Accounting MCQ Question Set 6
  7. MBA Accounting MCQ Question Set 7
  8. MBA Accounting MCQ Question Set 8
  9. MBA Accounting MCQ Question Set 9
  10. MBA Accounting MCQ Question Set 10
  11. MBA Advertising and Sales Promotion Mcq Set 1
  12. MBA Advertising and Sales Promotion Mcq Set 2
  13. MBA Advertising and Sales Promotion Mcq Set 3
  14. MBA Advertising and Sales Promotion Mcq Set 4
  15. MBA Advertising and Sales Promotion Mcq Set 5
  16. MBA Advertising and Sales Promotion Mcq Set 6
  17. MBA Advertising and Sales Promotion Mcq Set 7
  18. MBA Advertising and Sales Promotion Mcq Set 8
  19. MBA Advertising and Sales Promotion Mcq Set 9
  20. MBA Advertising and Sales Promotion Mcq Set 10
  21. MBA Advertising and Sales Promotion Mcq Set 11
  22. MBA Advertising and Sales Promotion Mcq Set 12
  23. MBA Advertising and Sales Promotion Mcq Set 13
  24. MBA Behavioural and Allied Sciences MCQ Set 1
  25. MBA Behavioural and Allied Sciences MCQ Set 2
  26. MBA Behavioural and Allied Sciences MCQ Set 3
  27. MBA Behavioural and Allied Sciences MCQ Set 4
  28. MBA Behavioural and Allied Sciences MCQ Set 5
  29. MBA Behavioural and Allied Sciences MCQ Set 6
  30. MBA Behavioural and Allied Sciences MCQ Set 7
  31. MBA Behavioural and Allied Sciences MCQ Set 8
  32. MBA Behavioural and Allied Sciences MCQ Set 9
  33. MBA Behavioural and Allied Sciences MCQ Set 10
  34. MBA Brand Management MCQ Set 1
  35. MBA Brand Management MCQ Set 2
  36. MBA Brand Management MCQ Set 3
  37. MBA Brand Management MCQ Set 4
  38. MBA Brand Management MCQ Set 5
  39. MBA Business Communication MCQ Set 1
  40. MBA Business Communication MCQ Set 2
  41. MBA Business Communication MCQ Set 3
  42. MBA Business Communication MCQ Set 4
  43. MBA Business Communication MCQ Set 5
  44. MBA Business Communication MCQ Set 6
  45. MBA Business Communication MCQ Set 7
  46. MBA Business Communication MCQ Set 8
  47. MBA Business Communication MCQ Set 9
  48. MBA Brand Management MCQ Set 10
  49. MBA Brand Management MCQ Set 11
  50. MBA Business Economics MCQ Set 1
  51. MBA Business Economics MCQ Set 2
  52. MBA Business Economics MCQ Set 3
  53. MBA Business Economics MCQ Set 4
  54. MBA Business Economics MCQ Set 5
  55. MBA Business Economics MCQ Set 6
  56. MBA Business Environment MCQ Set 1
  57. MBA Business Environment MCQ Set 2
  58. MBA Business Environment MCQ Set 3
  59. MBA Business Environment MCQ Set 4
  60. MBA Business Environment MCQ Set 5
  61. MBA Business Environment MCQ Set 6
  62. MBA Business Environment MCQ Set 7
  63. MBA Business Environment MCQ Set 8
  64. MBA Business Environment MCQ Set 9
  65. MBA Business Ethics and Governance MCQ Set 1
  66. MBA Business Law Mcq Set 1
  67. MBA Business Law Mcq Set 2
  68. MBA Business Law Mcq Set 3
  69. MBA Business Law Mcq Set 4
  70. MBA Business Law Mcq Set 5
  71. MBA Business Law Mcq Set 6
  72. MBA Business Law Mcq Set 7
  73. MBA Business Law Mcq Set 8
  74. MBA Business Law Mcq Set 9
  75. MBA Business Mathematics Mcq Set 1
  76. MBA Business Mathematics Mcq Set 2
  77. MBA Business Mathematics Mcq Set 3
  78. MBA Business Mathematics Mcq Set 4
  79. MBA Business Mathematics Mcq Set 5
  80. MBA Business Mathematics Mcq Set 6
  81. MBA Business Statistics Mcq Set 1
  82. MBA Business Statistics Mcq Set 2
  83. MBA Computers In Management Mcq Set 1
  84. MBA Computers In Management Mcq Set 2
  85. MBA Computers In Management Mcq Set 3
  86. MBA Computers In Management Mcq Set 4
  87. MAB Cost and Managerial Accounting Mcq Set 1
  88. MBA Cost and Managerial Accounting Mcq Set 1
  89. MBA Cost and Managerial Accounting Mcq Set 2
  90. MBA Cost and Managerial Accounting Mcq Set 3
  91. MBA Cost and Managerial Accounting Mcq Set 4
  92. MBA Cost and Managerial Accounting Mcq Set 5
  93. MBA Cost and Managerial Accounting Mcq Set 6
  94. MBA Cost and Managerial Accounting Mcq Set 7
  95. MBA Cost and Managerial Accounting Mcq Set 8
  96. MBA Cost and Managerial Accounting Mcq Set 9
  97. MBA Cost and Managerial Accounting Mcq Set 10
  98. MBA Cost and Managerial Accounting Mcq Set 11
  99. MBA E-Business MCQ Set 1
  100. MBA E-Business MCQ Set 2
  101. MBA E-Business MCQ Set 3
  102. MBA E-Business MCQ Set 4
  103. MBA English Language MCQ Set 1
  104. MBA English Language MCQ Set 2
  105. MBA Entrepreneurship Management MCQ Set 1
  106. MBA Entrepreneurship Management MCQ Set 2
  107. MBA Entrepreneurship Management MCQ Set 3
  108. MBA Entrepreneurship Management MCQ Set 4
  109. MBA Entrepreneurship Management MCQ Set 5
  110. MBA Entrepreneurship Management MCQ Set 6
  111. MBA Financial Management MCQ Set 1
  112. MBA Financial Management MCQ Set 2
  113. MBA Financial Management MCQ Set 3
  114. MBA Financial Management MCQ Set 4
  115. MBA Financial Management MCQ Set 5
  116. MBA Financial Management MCQ Set 6
  117. MBA Financial Management MCQ Set 7
  118. MBA Financial Management MCQ Set 8
  119. MBA Financial Management MCQ Set 9
  120. MBA Financial Management MCQ Set 10
  121. MBA Financial Management MCQ Set 11
  122. MBA Financial Management MCQ Set 12
  123. MBA Human Resource Management Mcq Set 1
  124. MBA Human Resource Management Mcq Set 2
  125. MBA Human Resource Management Mcq Set 3
  126. MBA Human Resource Management Mcq Set 4
  127. MBA Human Resource Management Mcq Set 5
  128. MBA Human Resource Management Mcq Set 6
  129. MBA Human Resource Management Mcq Set 7
  130. MBA Human Resource Management Mcq Set 8
  131. MBA Insurance and Risk Management Mcq Set 1
  132. MBA Insurance and Risk Management Mcq Set 2
  133. MBA Insurance and Risk Management Mcq Set 3
  134. MBA Insurance and Risk Management Mcq Set 4
  135. MBA Insurance and Risk Management Mcq Set 5
  136. MBA Insurance and Risk Management Mcq Set 6
  137. MBA Management Information Systems Mcq Set 1
  138. MBA Management Information Systems Mcq Set 2
  139. MBA Management Information Systems Mcq Set 3
  140. MBA Management Information Systems Mcq Set 4
  141. MBA Management Information Systems Mcq Set 5
  142. MBA Management Information Systems Mcq Set 6
  143. MBA Management Information Systems Mcq Set 7
  144. MBA Management Information Systems Mcq Set 8
  145. MBA Management Information Systems Mcq Set 9
  146. MBA Marketing Management Mcq Set 1
  147. MBA Marketing Management Mcq Set 2
  148. MBA Marketing Management Mcq Set 3
  149. MBA Marketing Management Mcq Set 4
  150. MBA Marketing Management Mcq Set 5
  151. MBA Marketing Management Mcq Set 6
  152. MBA Marketing Management Mcq Set 7
  153. MBA Marketing Management Mcq Set 8
  154. MBA Marketing Management Mcq Set 9
  155. MBA Marketing Management Mcq Set 10
  156. MBA Marketing Management Mcq Set 11
  157. MBA Marketing Management Mcq Set 12
  158. MBA Marketing Management Mcq Set 13
  159. MBA Media Planning Mcq Set 1
  160. MBA Media Planning Mcq Set 2
  161. MBA Media Planning Mcq Set 3
  162. MBA Media Planning Mcq Set 4
  163. MBA Operations Research Mcq Set 1
  164. MBA Operations Research Mcq Set 2
  165. MBA Operations Research Mcq Set 3
  166. MBA Operations Research Mcq Set 4
  167. MBA Operations Research Mcq Set 5
  168. MBA Organisational Behavior Mcq Set 1
  169. MBA Organisational Behavior Mcq Set 2
  170. MBA Organisational Behavior Mcq Set 3
  171. MBA Organisational Behavior Mcq Set 4
  172. MBA Principles and Practices of Management Mcq Set 1
  173. MBA Principles and Practices of Management Mcq Set 2
  174. MBA Principles and Practices of Management Mcq Set 3
  175. MBA Principles and Practices of Management Mcq Set 4
  176. MBA Principles and Practices of Management Mcq Set 5
  177. MBA Principles and Practices of Management Mcq Set 6
  178. MBA Principles and Practices of Management Mcq Set 7
  179. MBA Principles and Practices of Management Mcq Set 8
  180. MBA Principles and Practices of Management Mcq Set 9
  181. MBA Production and Operations Management Mcq Set 1
  182. MBA Production and Operations Management Mcq Set 2
  183. MBA Production and Operations Management Mcq Set 3
  184. MBA Production and Operations Management Mcq Set 4
  185. MBA Production and Operations Management Mcq Set 5
  186. MBA Production and Operations Management Mcq Set 6
  187. MBA Production and Operations Management Mcq Set 7
  188. MBA Production and Operations Management Mcq Set 8
  189. MBA Production and Operations Management Mcq Set 9
  190. MBA Production and Operations Management Mcq Set 10
  191. MBA System Analysis and Design Mcq Set 1
  192. MBA System Analysis and Design Mcq Set 2
  193. MBA System Analysis and Design Mcq Set 3
  194. MBA System Analysis and Design Mcq Set 4
  195. MBA System Analysis and Design Mcq Set 5
  196. MBA System Analysis and Design Mcq Set 6
  197. MBA System Analysis and Design Mcq Set 7
  198. MBA System Analysis and Design Mcq Set 8
  199. MBA System Analysis and Design Mcq Set 9
  200. MBA Total Quality Management Mcq Set 1
  201. MBA Total Quality Management Mcq Set 2
  202. MBA Total Quality Management Mcq Set 3
  203. MBA Total Quality Management Mcq Set 4
  204. MBA Total Quality Management Mcq Set 5
  205. MBA Total Quality Management Mcq Set 6
  206. MBA Total Quality Management Mcq Set 7
  207. MBA Total Quality Management Mcq Set 8
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