MCQOPTIONS
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MCQOPTIONS
This section includes 2436 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 1651. |
*/*_Future value of annuity FVA(ordinary) is, if deposited value is Rs 100 and earn 5% every year of total three years will be? |
| A. | Rs 315.25 |
| B. | Rs 331.01 |
| C. | Rs 99.49 |
| D. | Rs 318.25 |
| Answer» B. Rs 331.01 | |
| 1652. |
*/*_Claim against assets are represented by? |
| A. | saved earning |
| B. | retained earnings |
| C. | maintained earnings |
| D. | saving account earning |
| Answer» C. maintained earnings | |
| 1653. |
*/*_An earning before interest, taxes, depreciation and amortization are calculated by? |
| A. | subtracting operating cost from net sales |
| B. | subtracting net sales from operating costs |
| C. | adding operating cost and net sales |
| D. | adding interest and taxes |
| Answer» B. subtracting net sales from operating costs | |
| 1654. |
*/*_rate which is divided by compounding periods to calculate periodic rate must be? |
| A. | annuity return |
| B. | deferred annuity return |
| C. | nominal rate |
| D. | semi-annual discount rate |
| Answer» D. semi-annual discount rate | |
| 1655. |
*/*_Periodic rate if it is multiplied with per year number of compounding periods is called? |
| A. | extrinsic rate of return |
| B. | intrinsic rate of return |
| C. | annual rate of return |
| D. | nominal annual rate |
| Answer» E. | |
| 1656. |
*/*_Paid dividends to common stockholders Rs 67,600,000 and common shares outstanding 55,000,000 then dividend per share will be? |
| A. | Rs 1.23 |
| B. | Rs 0.81 |
| C. | Rs 2.12 |
| D. | Rs 2.78 |
| Answer» B. Rs 0.81 | |
| 1657. |
*/*_Cost of common stock is 14% and bond risk premium is 9% then bond yield will be? |
| A. | 1.56% |
| B. | 5.00% |
| C. | 23.00% |
| D. | 64.28% |
| Answer» C. 23.00% | |
| 1658. |
*/*_Markets for products such as wheat, rice, cotton, real estate and autos dealing is classified as? |
| A. | physical asset markets |
| B. | intangible assets |
| C. | competitive markets |
| D. | easy markets |
| Answer» B. intangible assets | |
| 1659. |
*/*_Firm's promise to pay and is backed or guaranteed by bank is classified as? |
| A. | customer's acceptance |
| B. | banker's acceptance |
| C. | federal acceptance |
| D. | treasury acceptance |
| Answer» C. federal acceptance | |
| 1660. |
*/*_An earning of business which is available for free distribution to all stockholders and creditors is classified as? |
| A. | free cash flows |
| B. | free distribution |
| C. | available income |
| D. | cash income |
| Answer» B. free distribution | |
| 1661. |
*/*_Market where market makers keep record of stock of financial instruments is classified as? |
| A. | stock market |
| B. | dealer market |
| C. | outcry auction system |
| D. | face to face communication |
| Answer» C. outcry auction system | |
| 1662. |
*/*_High price to earning ratio shows company's? |
| A. | low dividends paid |
| B. | high risk prospect |
| C. | high growth prospect |
| D. | high marginal rate |
| Answer» D. high marginal rate | |
| 1663. |
*/*_Companies that help to set benchmarks are classified as? |
| A. | competitive companies |
| B. | benchmark companies |
| C. | analytical companies |
| D. | return companies |
| Answer» C. analytical companies | |
| 1664. |
*/*_An interest rate which is paid by money borrower and charged by lender is considered as? |
| A. | annual rate |
| B. | periodic rate |
| C. | perpetuity rate of return |
| D. | annuity rate of return |
| Answer» C. perpetuity rate of return | |
| 1665. |
*/*_Net income is Rs 2250 and noncash charges are Rs 1150 then net cash flow would be? |
| A. | Rs 1,100.00 |
| B. | Rs 3,400.00 |
| C. | Rs 2,200.00 |
| D. | Rs 3,500.00 |
| Answer» B. Rs 3,400.00 | |
| 1666. |
*/*_An interest rate is 5%, number of period are 3, and present value is Rs 100,and then future value will be? |
| A. | 115.76 |
| B. | 105.00 |
| C. | 110.25 |
| D. | 113.56 |
| Answer» B. 105.00 | |
| 1667. |
*/*_If security pays Rs 5,000 in 20 years with 7% annual interest rate, PV of security by using formula is? |
| A. | Rs 1,290.10 |
| B. | Rs 1,292.10 |
| C. | Rs 1,295.10 |
| D. | Rs 1,297.10 |
| Answer» C. Rs 1,295.10 | |
| 1668. |
*/*_Values recorded as determined in marketplace are considered as? |
| A. | market values |
| B. | book values |
| C. | appreciated values |
| D. | depreciated values |
| Answer» B. book values | |
| 1669. |
*/*_Ratios which relate firm's stock to its book value per share, cash flow and earnings are classified as? |
| A. | return ratios |
| B. | market value ratios |
| C. | marginal ratios |
| D. | equity ratios |
| Answer» C. marginal ratios | |
| 1670. |
*/*_An income available for shareholders after deducting expenses and taxes from revenues is classified as? |
| A. | net income |
| B. | net earnings |
| C. | net expenses |
| D. | net revenues |
| Answer» B. net earnings | |
| 1671. |
*/*_Land, buildings, and factory fixed equipment are classified as? |
| A. | tangible asset |
| B. | non-tangible assets |
| C. | financial asset |
| D. | financial liability |
| Answer» B. non-tangible assets | |
| 1672. |
*/*_In time value of money, nominal rate is? |
| A. | not shown on timeline |
| B. | shown on timeline |
| C. | multiplied on timeline |
| D. | divided on timeline |
| Answer» B. shown on timeline | |
| 1673. |
*/*_Number of shares outstanding if it is divided by net income for using to calculate? |
| A. | earning per share |
| B. | dividends per share |
| C. | book value of share |
| D. | market value of shares |
| Answer» B. dividends per share | |
| 1674. |
%_Realized and required return for individual stocks are classified as function of fundamental_% |
| A. | arbitrage factors |
| B. | economic factors |
| C. | portfolio factors |
| D. | realized theory factors |
| Answer» C. portfolio factors | |
| 1675. |
%_Formula written as market risk premium divided by standard deviations of returns on market portfolio is used to calculate_% |
| A. | capital market line |
| B. | security market line |
| C. | fixed market line |
| D. | variable market line |
| Answer» B. security market line | |
| 1676. |
%_In capital asset pricing model, covariance between stock and market is divided by variance of market returns is used to calculate_% |
| A. | sales turnover of company |
| B. | risk rate of company |
| C. | beta coefficient of company |
| D. | weighted mean of company |
| Answer» D. weighted mean of company | |
| 1677. |
%_According to capital asset pricing model assumptions, variances, expected returns and covariance of all assets are_% |
| A. | identical |
| B. | not identical |
| C. | fixed |
| D. | variable |
| Answer» B. not identical | |
| 1678. |
%_Type of relationship exists between an expected return and risk of portfolio is classified as_% |
| A. | non-linear |
| B. | linear |
| C. | fixed and aggregate |
| D. | non-fixed and non-aggregate |
| Answer» C. fixed and aggregate | |
| 1679. |
%_Relationship between risk free asset and a single risky asset are always_% |
| A. | linear |
| B. | non-linear |
| C. | efficient |
| D. | effective |
| Answer» B. non-linear | |
| 1680. |
%_If market value is greater than book value then investors for future stock are considered as_% |
| A. | experienced |
| B. | inexperienced |
| C. | pessimistic |
| D. | optimistic |
| Answer» E. | |
| 1681. |
%_Formula written as 0.67(Historical Beta) + 0.35(1.0) is used to calculate_% |
| A. | historical betas |
| B. | adjusted betas |
| C. | standard betas |
| D. | varied betas |
| Answer» C. standard betas | |
| 1682. |
%_High price to earning ratio shows company's_% |
| A. | low dividends paid |
| B. | high risk prospect |
| C. | high growth prospect |
| D. | high marginal rate |
| Answer» D. high marginal rate | |
| 1683. |
%_Proceeds of company shares of sold stock is recorded in_% |
| A. | preferred stock account |
| B. | common stock account |
| C. | due stock account |
| D. | preceded stock account |
| Answer» C. due stock account | |
| 1684. |
%_In time value of money, nominal rate is_% |
| A. | not shown on timeline |
| B. | shown on timeline |
| C. | multiplied on timeline |
| D. | divided on timeline |
| Answer» B. shown on timeline | |
| 1685. |
%_Number of shares outstanding if it is divided by net income for using to calculate_% |
| A. | earning per share |
| B. | dividends per share |
| C. | book value of share |
| D. | market value of shares |
| Answer» B. dividends per share | |
| 1686. |
%_An income available for shareholders after deducting expenses and taxes from revenues is classified as_% |
| A. | net income |
| B. | net earnings |
| C. | net expenses |
| D. | net revenues |
| Answer» B. net earnings | |
| 1687. |
%_Land, buildings, and factory fixed equipment are classified as_% |
| A. | tangible asset |
| B. | non-tangible assets |
| C. | financial asset |
| D. | financial liability |
| Answer» B. non-tangible assets | |
| 1688. |
%_Companies that help to set benchmarks are classified as_% |
| A. | competitive companies |
| B. | benchmark companies |
| C. | analytical companies |
| D. | return companies |
| Answer» C. analytical companies | |
| 1689. |
%_Ratios which relate firm's stock to its book value per share, cash flow and earnings are classified as_% |
| A. | return ratios |
| B. | market value ratios |
| C. | marginal ratios |
| D. | equity ratios |
| Answer» C. marginal ratios | |
| 1690. |
%_In regression of capital asset pricing model, an intercept of excess returns is classified as_% |
| A. | Sharpe's reward to variability ratio |
| B. | tenor's reward to volatility ratio |
| C. | Jensen's alpha |
| D. | tenor's variance to volatility ratio |
| Answer» D. tenor's variance to volatility ratio | |
| 1691. |
%_Present value of portfolio Rs 850 and current option price Rs 1620 then value of stock included in portfolio would be_% |
| A. | Rs 190.00 |
| B. | Rs 880.00 |
| C. | Rs 770.00 |
| D. | Rs 2,470.00 |
| Answer» D. Rs 2,470.00 | |
| 1692. |
%_Stock portfolio with highest book to market ratios is considered as_% |
| A. | H portfolio |
| B. | L portfolio |
| C. | S portfolio |
| D. | B to M portfolio |
| Answer» B. L portfolio | |
| 1693. |
%_Second factor in Fama French three factor model is the_% |
| A. | size of industry |
| B. | size of market |
| C. | size of company |
| D. | size of portfolio |
| Answer» D. size of portfolio | |
| 1694. |
%_Value of option which is considered as its worth as soon as it is expired is classified as_% |
| A. | minimum option value |
| B. | minimum value |
| C. | maximum value |
| D. | exercise value |
| Answer» E. | |
| 1695. |
%_Diversification reduces _________-_._% |
| A. | Interest rate risk |
| B. | Market risk |
| C. | Unique risk |
| D. | Inflation risk |
| Answer» D. Inflation risk | |
| 1696. |
%_Which of the following is not a source of long-term finance?_% |
| A. | Equity shares |
| B. | Preference shares |
| C. | Commercial papers |
| D. | Reserves and surplus |
| Answer» D. Reserves and surplus | |
| 1697. |
%_Investment professionals whose jobs may depend on their performance relative to the market are the______________._% |
| A. | registered representatives |
| B. | security analysts |
| C. | investment bankers |
| D. | portfolio managers |
| Answer» B. security analysts | |
| 1698. |
%_Which of the following approaches advocates that the costs of equity capital and debt capital remain unaltered when the degree of leverage varies?_% |
| A. | Net Income Approach |
| B. | Traditional Approach |
| C. | Modigliani-Miller Approach |
| D. | Net operating Income |
| Answer» B. Traditional Approach | |
| 1699. |
%_Operating leverage examines._% |
| A. | The effect of the change in the quantity on EBIT |
| B. | The effect of the change in EBIT on the EPS of the company |
| C. | The effect of the change in output to the EPS of the company |
| D. | The effect of change in EPS on the output of the company |
| Answer» B. The effect of the change in EBIT on the EPS of the company | |
| 1700. |
%_The value of bond depends on ____________._% |
| A. | the coupon rate |
| B. | years to maturity |
| C. | expected yield to maturity |
| D. | all the above |
| Answer» E. | |