Administrator, Author at GetMCQs

1593. Right of common stockholders to purchase additional stock issued by company is classified as

common right

pre-emptive right

purchase right

selling right

✅ The correct answer is B.
Right of common stockholders to purchase additional stock issued by company is classified as pre-emptive right. A preemptive right offers select shareholders of a corporation the right to buy a proportional interest in any future issue of the company’s common stock.

1594. Which of the following is true regarding the expected return of a portfolio?

It is a weighted average only for stock portfolios

It can only be positive

It can never be above the highest individual return

All of the above are true

✅ The correct answer is C.
It can never be above the highest individual return is true regarding the expected return of a portfolio. The expected return for an investment portfolio is the weighted average of the expected return of each of its components.

1595. Bank deposit addresses which type of need?

Uncertainties

Wealth creation

Savings

Contingencies

✅ The correct answer is C.
Bank deposit addresses Savings. A savings account is an interest-bearing deposit account held at a bank or other financial institution that provides a modest interest rate.

146. Municipal tax Rs.6000 under dispute is a

Contingent liability

Revenue expenditure

Current liability

Current asset

✅ The correct answer is A.
Municipal tax Rs.6000 under dispute is a Contingent liability. Contingent liabilities are liabilities that may be incurred by an entity depending on the outcome of an uncertain future event such as the outcome of a pending lawsuit.

1597. Of all stocks in a portfolio, required rate of return is classified as

return portfolio

in volatile portfolio

volatile portfolio

market portfolio

✅ The correct answer is D.
Of all stocks in a portfolio, required rate of return is classified as market portfolio. A market portfolio is a theoretical bundle of investments that includes every type of asset available in the world financial market, with each asset weighted in proportion to its total presence in the market.

1598. Which type of Annuity will have 2 distinct phases?

Immediate Annuity

Deferred Annuity

Spouse Annuity

Joint life annuity

✅ The correct answer is B.
There are two phases for a deferred annuity: the accumulation or deferral phase in which the customer deposits (or pays premiums) and accumulates money into an account; the distribution or annuitization phase in which the insurance company makes income payments until the death of the annuitants named in the contract.

1599. In weighted average cost of capital, a company can affect its capital cost through

policy of capital structure

policy of dividends

policy of investment

all of above

✅ The correct answer is D.
In weighted average cost of capital, a company can affect its capital cost through policy of capital structure, policy of dividends and policy of investment

1601. ___________ is the value of economic resources used as a result of producing or doing the thing costed.

Cost

Inventory

Labour

overhead

✅ The correct answer is A.
Cost is the value of economic resources used as a result of producing or doing the thing costed. Cost is ascertained by cost centres or cost units or by both.

1603. Under Deferred annuity, the premium has to be paid –

In regular instalments

In lumpsum

Both A & B

None of the above

✅ The correct answer is C.
These annuities may be purchased with a single payment or, as is more often the case, with a series of periodic payments.

147. Which of the following is a real account?

Salary account

Cash account

Outstanding rent account

Sundry creditors account

✅ The correct answer is B.
Cash account is a real account. Real accounts show up on a company’s balance sheet, which is the financial statement that lists all the accounts that a company has and their balances.

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