ACC501 MCQs

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A series of constant, or level, cash flows that occur at the end of each period for some fixed number of periods is called a/an: ► Present Value ► Future Value ► Ordinary Annuity ► Ordinary Share

Question No: 2 ( Marks: 1 ) - Please choose one

The Ratios showing the ability of a firm to pay its bills in short-run are called: ► Leverage Ratios ► Liquidity Ratios ► Profitability Ratios ► Market Value Ratios

Question No: 3 ( Marks: 1 ) - Please choose one

GAAP stands for: ► Generally Accepted Accounting Principles ► Generally All-rounder Accounting Principles ► General Accepting Accounts Principles ► None of the given options

Question No: 4 ( Marks: 1 ) - Please choose one

A contract between the bond issuer and bond holder is called: ► Bond Indenture ► Bond Debenture ► Bond Value ► None of the given options

Question No: 5 ( Marks: 1 ) - Please choose one

Suppose you have a portfolio comprised of two securities X and Y. In the portfolio, 60 shares are of stock X valued at Rs.10 per share and 40 shares are of stock Y valued at Rs.3 per share. What is the approximate weight of stock X in the portfolio? ► 23 % ► 40 % ► 60 % ► 83 %

Question No: 6 ( Marks: 1 ) - Please choose one

In which market, previously issued securities are traded among investors? ► Primary Market ► Secondary Market ► Tertiary Market ► None of the given options

Question No: 7 ( Marks: 1 ) - Please choose one

Which of the following is the present value of a series of future net cash flows that will result from an investment, minus the amount of the original investment? ► Present Value ► Future Value ► Net Present Value ► Terminal Value

Question No: 8 ( Marks: 1 ) - Please choose one

You earn a 5 percent real return. If the inflation rate is 4 percent, what is your nominal return? ► 8.96 % ► 9.05 % ► 9.20 % ► 9.92 %

Question No: 9 ( Marks: 1 ) - Please choose one

Fee paid to the consultant for evaluating the option of launching a new product will be considered as: ► Sunk Cost ► Opportunity Cost ► Financing Cost ► Operating Cost

Question No: 10 ( Marks: 1 ) - Please choose one

A risk that affects a single or at most a small number of assets is called: ► Unsystematic Risk ► Unique Risk ► Diversifiable Risk ► All of the given options

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