Accounting MCQs With Answers
311. If bank giving 12% interest rate per year, then per month it will be
- 1%
- 12%
- 5%
- 6%
Correct answer: (A)
1%
312. Market value determines
- On running business
- When company closedown
- Before establishment of business
- When asset sold individually
Correct answer: (A)
On running business
313. The Yield to Maturity on a bond is
- Equal to the Coupon Rate divided by the Market Price
- The Current Required Market Rate
- Equal to the Annual Interest divided by the Face Value
- Another name for the coupon rate.
Correct answer: (B)
The Current Required Market Rate
314. Muhammad Ali just received an interest payment that is equal to 7 percent of his Rs. 20,000 in Bond investment. This 7 percent is best described as a
- Real Return
- Deflated Return
- Coupon Return
- None
Correct answer: (C)
Coupon Return
315. A decrease in the firm's receivable turnover ratio means that ______________.
- Inventories have gone up
- It is collecting credit sales more slowly than before
- Cash sales have gone down
- None of above
Correct answer: (B)
It is collecting credit sales more slowly than before
316. Marketable Securities, Account Receivables and Inventory are listed as
- Current Asset
- Current Liabilities
- Long Term Asset
- Long term liabilities
Correct answer: (A)
Current Asset
317. The Coupon Rate for a Bond is best defined as the
- Annual interest divided by the current market price
- Annual interest divided by the face value
- Annual interest divided by the clean market price
- All of Above
Correct answer: (B)
Annual interest divided by the face value
318. Which of the following is considered a Profitability measure?
- Days Sales in Inventory
- Fixed Asset Turnover
- Cash Coverage Ratio
- Return on Assets
Correct answer: (D)
Return on Assets
319. Quick ratios are also called ______________
- Super ratios
- Acid-test ratios
- Cash ratios
- None of the above
Correct answer: (B)
Acid-test ratios
320. Bond secured by lien on real property is
- Debenture
- Euro bond
- Mortgage bond
- Convertible bond
Correct answer: (C)
Mortgage bond
Saturday, November 20, 2021