Accounting and Finance problems
- 1. Purchase return and allowances is a contra account
Options- A. TRUE
- B. FALSE Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: TRUE
Explanation:
Purchase return and allowances is a contra account to purchases.
- 2. Who is responsible to pay back all debts?
Options- A. government
- B. spouse
- C. Both A & B
- D. None of the above Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: government
- 3. A capital expenditure results in a debit to
Options- A. an asset account
- B. a liability account
- C. an expense account
- D. a capital account Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: an asset account
- 4. Which of the following statements about minimum payments is incorrect?
Options- A. If you send in the minimum payment, you will be charged a late fee
- B. Paying the minimum means you are only paying off a portion of your total debt
- C. You will still pay interest on your balance if you submit the minimum payment
- D. Minimum payments are typically only 2-4% of your total debt Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: If you send in the minimum payment, you will be charged a late fee
- 5. In recording an accounting transaction in a double-entry system
Options- A. there must always be entries made on both sides of the accounting equation.
- B. the amount of the debits must equal the amount of the credits.
- C. there must only be two accounts affected by any transaction.
- D. the number of debit accounts must equal the number of credit accounts. Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: the amount of the debits must equal the amount of the credits.
- 6. Which of the following is a type of savings vehicle?
Options- A. Checking Account
- B. Certificate of Deposit
- C. Money Market Account
- D. Both B & C Also asked in: CAT, Bank Exams, AIEEE, Bank PO, Bank Clerk, Analyst
Correct Answer: Both B & C
- 7. Automatic stabilizers refer to
Options- A. government spending and taxes that automatically increase or decrease along with the business cycle.
- B. changes in the money supply and interest rates that are intended to achieve macroeconomic policy objectives.
- C. changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives.
- D. the money supply and interest rates that automatically increase or decrease along with the business cycle. Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: government spending and taxes that automatically increase or decrease along with the business cycle.
- 8. OMO refers to Also asked in: Analyst, Bank Clerk, Bank PO
Correct Answer: Open Market Operations (OMO) refer to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system
- 9. The balance of an account is determined by
Options- A. Sum of credits and debits
- B. Difference of credits and debits
- C. Product of credits and debits
- D. None of the above Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Difference of credits and debits
Explanation:
The balance of an account is determined by the difference of credits amount and debits amount in the sheet.
- 10. Which best describes the difference between stocks and bonds?
Options- A. stocks allow investors to own a portion of the company; bonds are loans to the company
- B. stocks are more reliable investment;bonds tend to be more volatile
- C. stocks allow investors to share in profits;bonds make investors responsible for company debts
- D. stocks pay interest to investors throughout the year; bonds only pay interest at fixed times during the year Also asked in: AIEEE, Bank Exams, CAT, GATE, Analyst, Bank Clerk, Bank PO
Correct Answer: stocks are more reliable investment;bonds tend to be more volatile
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