Monday, November 28, 2011

Re: [ vuZs.net ] ACC501 MCQs help

Which one of the following is a CORRECT statement about the Price-Earning
Ratio?
        A high PE ratio generally means a firm has little prospect
for future.
        A firm with high earning per share will also have a very high
PE ratio.
        Care must be taken in interpreting very high PE ratios since
they can result
from a firm having very low earnings.
        A firm with high earnings per share will also have a very
high PE ratio.
Which one of the following ratios indicates the return firm shareholders are
earning?
        Return on assets
        Return on investment
        Return on equity
        Net profit margin
Corporate bonds usually have a face value of Rs. 1,000 which is called:
        Principal value
        Coupon payments
        Yield to maturity
        Current yield
Question No: 22      ( Marks: 1 ) - Please choose one

Which of the following allows a company to repurchase part or all of the bond
issue at a stated price?
        Repayment
        Seniority
        Call provision
        Protective covenants
Question No: 23      ( Marks: 1 ) - Please choose one
Which of the following long-term rating by PACRA denotes a high default risk?
        AAA
        BBB
        CCC
        CC
Question No: 24      ( Marks: 1 ) - Please choose one
Which  one  of  the  following  statements  is  INCORRECT  regarding
floating-rate
bond?
        Holder of this type of bond has the right to redeem the note
at par on the
coupon payment date after some specified period of time.
        Coupon rate has a floor and a ceiling i.e. coupon is
subjected to a minimum
and a maximum.
        An interesting type of floating rate bonds is an
Inflation-linked bond.
        Such bonds have coupons that need not be adjusted according
to the rate of
inflation.           dough
Question No: 19      ( Marks: 1 ) - Please choose one
Between  the  two  identical  bonds  having  different  coupon,  the
price  of  the
________ bond will change more than that of ________ bond.
        Higher-coupon; lower-coupon
        Lower-coupon; higher-coupon
        Short-term; long-term
        None of the given options
A bond's value will rise above its par value during its life if
interest rate:
        Goes up
        Goes down
        Remains the same
        There is no relation between value and interest rate
Which  one  of  the  following  is  a  correct  formula  to  calculate
 present  value  of
annuity?        PVt = P x ( 1 – Present value factor ) / r
        PVt  = P x ( 1 – Future value factor ) / r
        PVt  = P x ( Present value factor –  1 ) / r
        PVt  = P x ( Future value factor –  1 ) / r
Question No: 11      ( Marks: 1 ) - Please choose one
What will be  the  annual payment  on  a  6-year  Rs. 14,000  loan
that  carries  a  7%
interest rate?
        Rs. 2,816
        Rs. 2,937
        Rs. 3,088
        Rs. 3,277
Question No: 12      ( Marks: 1 ) - Please choose one
How much must be deposited at 15% each of the next 7 years to have Rs. 4,565?
        Rs. 452.75
        Rs. 570.50
        Rs. 350.20
        Rs. 412.50
The present value of a sum of Rs. 100 to be received in the future will be:
        Less than Rs. 100
        None of the given options
        More than Rs. 100
        Equal to Rs. 100
Question No: 9      ( Marks: 1 ) - Please choose one
You  just  won  a  prize,  you  can  either  receive Rs.  950  today
or  Rs.  1,000  in  one
year. Which  option  do  you  prefer  and  why  if  you  can  earn  8
percent  on  your
money?
        Rs. 950 because it has the higher future value
        Rs. 950 because you receive it sooner
        Rs. 1,000 because it is more than Rs. 950
        Either because both options are of equal value
Which of the following is NOT an investing cash flow?
        Proceeds from the sale of a retired asset
        Purchase of a delivery vehicle
        Sale of machinery
        Purchase of inventories
Question No: 5      ( Marks: 1 ) - Please choose one
The  balance  sheet  reported  a  beginning  balance  of  Rs.  23,000
in  Accounts
Receivable and  an  ending balance of Rs. 16,000. The  income
statement  reported
Sales Revenue of Rs. 230,000. Using this information, what will be the
amount of
cash collected from customers?
        Rs. 269,000
        Rs. 253,000
        Rs. 237,000
        Rs. 230,000
Question No: 6      ( Marks: 1 ) - Please choose one
What would  be  the  amount  of current  assets  for  a  company which
 has  a  current
ratio of 4:1 and net working capital of Rs. 30,000?
        Rs. 6,000
        Rs. 10,000
        Rs. 24,000
        Rs. 40,000

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