Accounting for Managers 321. Net present value ______________.
Is equal to the initial investment in a project Is equal to the present value of the project benefits Is equal to zero when the discount rate used is equal to the IRR Is simplified by the fact that future cash flows are easy to estimate View answer Correct answer: (B)
322. Profit maximization is a
Short term concept Long term concept Both a & b None View answer Correct answer: (A)
323. Which of the following is the variability of return on stocks or portfolios associated with changes in return on the market as a whole?
Systematic risk Standard deviation Unsystematic risk Coefficient of variation View answer Correct answer: (A)
324. When the bond approaches its maturity, the market value of the bond approaches to which of the following?
Intrinsic value Book value Par value Historic cost View answer Correct answer: (A)
325. Bonds are hybrid of
Annuity due + Lumpsum amount Ordinary annuity + Lumpsum amount Annuity due + Ordinary annuity Perpetuity + Lumpsum amount View answer Correct answer: (B)
326. Which one of the following can issue the corporate bond?
Individuals Government Public limited companies All of before View answer Correct answer: (C)
327. A Bond that pays no interest payments and sells at a deep discount is called
Bond Zero Coupon Convertible Tax-free View answer Correct answer: (B)
328. Which of the following statements is incorrect?
Assets - Capital = Liabilities Liabilities + Assets = Capital Liabilities + Capital = Assets Assets - Liabilities = Capital View answer Correct answer: (B)
329. Given the following, what is the amount of Capital? Assets: Premises £20,000; Stock £8,500; Cash £100. Liabilities: Creditors £3,000; Loan from A Adams £4,000
£21,100 £21,400 £21,600 £32,400 View answer Correct answer: (C)
330. To find the value of closing stock at the end of a period we
do this by stocktaking deduct cost of goods sold from sales deduct opening stock from cost of goods sold look in the stock account View answer Correct answer: (A)