1210. Type of stock which have characteristics of bonds and common stock is classified as

by
bonds equity
common shares
common stock
preferred stock
✅ The correct answer is D.
Type of stock which have characteristics of bonds and common stock is classified as preferred stock. Preferred stock refers to a class of ownership that has a higher claim on assets and earnings than common stock has.

1209. An excess of actual price of option over an exercise value of option is classified as

by
time value options
actual options
estimated options
optional pricing
✅ The correct answer is A.
An excess of actual price of option over an exercise value of option is classified as time value options. In options trading, time value refers to the portion of an option’s premium that is attributable to the amount of time remaining until the expiration of the option contract.

1206. Which of the following statement are true in respect of working capital?

by
Gross Working Capital is the sum of the total current assets
Net working capital represents current assets – current liablities
Net working capital can be negative
All the above
✅ The correct answer is D.
Gross Working Capital is the sum of the total current assets, Net working capital represents current assets – current liablities and Net working capital can be negative of the following statement are true in respect of working capital.

1204. In cash flow estimation, depreciation is considered as

by
cash charge
noncash charge
cash flow discounts
net salvage discount
✅ The correct answer is B.
In cash flow estimation, depreciation is considered as noncash charge. A company will take a non-cash charge against non-cash items on the balance sheet, such as depreciation, amortization, and depletion. These charges are typically made when something unusual happens, often outside the control of the company.

1200. Out of the following, what is not the work of purchase department:

by
Receiving purchase requisition
Exploring the sources of material supply
Preparation and execution of purchase orders
Accounting for material received
✅ The correct answer is D.
Accounting for material received is not the work of purchase department. Most major companies and even some government organizations have a purchasing or procurement department as part of everyday operations. These departments provide a service that is the backbone of many manufacturing, retail, military and other industrial organizations.

1218. Net income available to stockholders is Rs 150 and total assets are Rs 2,100 then return on total assets would be

by
0.07%
7.14%
0.05 times
7.15 times
✅ The correct answer is B.
Net income available to stockholders = 150

Total assets = 2100

Return on common equity rate shows the net income earned per every rupee invested.It acts as a yardstick of profitability.

Return on common equity

= (net income – preferential stock)/Average common stock holder’s equity

No further information is available

= (150/2100)×100

= 7.14%

1198. In financial markets, period of maturity within one to five years of financial instruments is classified as

by
short-term
long-term
intermediate term
capital term
✅ The correct answer is C.
In financial markets, period of maturity within one to five years of financial instruments is classified as intermediate term. A term is an intermediate (or innominate) term if the remedy for its breach depends on the effect of the breach at the time it happens.