| 1. |
While selling securities, brokerage is generally calculated on following price- |
| A. | Face value |
| B. | Sales price |
| C. | Average of face value and sales price. |
| D. | Book value |
| Answer» B. Sales price | |
| 2. |
In case of ex-interest transaction, the amount of interest is calculated for the following period. |
| A. | Upto the date of next interest payment |
| B. | For the whole year |
| C. | From the last date of interest payment till the date of transaction |
| D. | For full 6 months. |
| Answer» C. From the last date of interest payment till the date of transaction | |
| 3. |
Interest on security is calculated on - |
| A. | It Face value |
| B. | Its Market price |
| C. | Its Purchase Price |
| D. | None of these |
| Answer» A. It Face value | |
| 4. |
Capital value in case of cum-interest purchase means - |
| A. | The total amount paid to broker as purchase price. |
| B. | Purchase price- Interest included + Brokerage |
| C. | Market price on the date of purchase |
| D. | Selling price + interest included |
| Answer» B. Purchase price- Interest included + Brokerage | |
| 5. |
Investment Accounts are kept |
| A. | Only by Brokers |
| B. | only by Companies |
| C. | By any person who is an investor |
| D. | By stock exchange only |
| Answer» C. By any person who is an investor | |
| 6. |
The interest on fixed dates are received only on following securities : |
| A. | Equity shares of companies |
| B. | Government securities |
| C. | Shares of foreign companies |
| D. | preference share of companies. |
| Answer» B. Government securities | |
| 7. |
In case of purchase and sales of securities ex- interest - |
| A. | Interest is payable in addition to market price |
| B. | Market price includes interest also |
| C. | No separate calculation for interest is made |
| D. | The seller gets interest on the next interest date. |
| Answer» A. Interest is payable in addition to market price | |
| 8. |
The Closing stock of investment is valued - |
| A. | Always at purchase price |
| B. | At cost or market price whichever is less |
| C. | Always at market price |
| D. | Purchase price less likely reduction in market price. |
| Answer» B. At cost or market price whichever is less | |
| 9. |
Cum interest price of security is than ex- interest price. |
| A. | Less |
| B. | More |
| C. | May be more or less |
| D. | None of these |
| Answer» B. More | |
| 10. |
The Capital Value of Investments in case of ex- interest purchase (subject to Brokerage) means : |
| A. | Market price on the date of purchase |
| B. | Purchase Price + Interest + Brokerage |
| C. | Purchase price - Interest + Brokerage |
| D. | None of these |
| Answer» D. None of these | |
| 11. |
Cost of Investment does not include |
| A. | Interset |
| B. | Brokerage |
| C. | Stamp Duty |
| D. | None of these |
| Answer» A. Interset | |
| 12. |
Total amount payable less its cash price is equal to - |
| A. | Depreciation |
| B. | Interest |
| C. | Market Price |
| D. | Purchase Price |
| Answer» B. Interest | |
| 13. |
Cash price of asset + Interest = price |
| A. | Contract |
| B. | Market |
| C. | After Depreciation |
| D. | Purchase |
| Answer» A. Contract | |
| 14. |
Under hire-purchase system the amount of interest is charged to Account |
| A. | Asset |
| B. | Purchaser |
| C. | Profit and Loss |
| D. | Seller |
| Answer» C. Profit and Loss | |
| 15. |
At the end of the year, the interest paid and depreciation charged are transferred to the account |
| A. | Asset |
| B. | Profit and Loss |
| C. | Purchaser |
| D. | Seller |
| Answer» B. Profit and Loss | |
| 16. |
In which of the following method of sales, if the purchaser can't pay the amount of instalment, the vendor can get the assets as return back ? |
| A. | Cash Method |
| B. | Sales or Return based sale |
| C. | Instalment system |
| D. | Hire purchase system |
| Answer» D. Hire purchase system | |
| 17. |
By deducting cash price from the contract price of assets, the difference of the amount is called |
| A. | Original Price |
| B. | Sales price |
| C. | Interest |
| D. | Istalment |
| Answer» C. Interest | |
| 18. |
Which of the following is not included in the hire purchase agreement ? |
| A. | Interest rate |
| B. | Instalment amount |
| C. | Methods for depreciation |
| D. | Number of Instalment |
| Answer» C. Methods for depreciation | |
| 19. |
In case of Hire purchase system, Interest is not included in- |
| A. | Down payment |
| B. | Hire purchase price |
| C. | Intalment |
| D. | None of these |
| Answer» A. Down payment | |
| 20. |
Under the Hire purchase system, goods are delivered to the hirer when - |
| A. | First Instalment is paid |
| B. | Agreement is signed |
| C. | Last instalment is paid |
| D. | None of these |
| Answer» B. Agreement is signed | |
| 21. |
Interest is calculated on under hire purchase agreement. |
| A. | Cash Price |
| B. | Hire purchase price |
| C. | Balance of cash price outstanding at the beginning of instalment |
| D. | None of these |
| Answer» C. Balance of cash price outstanding at the beginning of instalment | |
| 22. |
Under the Hire purchase system, ownership of goods is transferred to the hirer when - |
| A. | First Instalment is paid |
| B. | Agreement is signed |
| C. | Last instalment is paid |
| D. | None of these |
| Answer» C. Last instalment is paid | |
| 23. |
In case of Hire purchases, the depreciation is calculated on - |
| A. | Hire purchase price |
| B. | Contract Price |
| C. | Cash price |
| D. | None of these |
| Answer» C. Cash price | |
| 24. |
The main difference between sale under Hire purchase agreement and sales under Installment system is regarding |
| A. | Delivery of the goods |
| B. | Ownership of the goods |
| C. | Sales price of the goods |
| D. | None of these |
| Answer» B. Ownership of the goods | |
| 25. |
In pure single entry |
| A. | Purchase and sales book is kept |
| B. | Only cash book is kept |
| C. | All susidiary books are kept |
| D. | Certain subsidiary books are kept |
| Answer» B. Only cash book is kept | |
We're developing a website for study materials for students.
We would love to hear your answers to some of the questions.
