Accounting

MCQsQuestion.com has 1589 Question/Answers about Topic Accounting

Bonds that are backed by cash flow from project and are sold to finance particular project are classified as

Bonds that are backed by cash flow from project and are sold to finance particular project are classified as
  • A. finance bonds
  • B. revenue bonds
  • C. financing bonds
  • D. project bonds
  • Correct Answer: Option B

Agreement which incurs transaction between two parties and promise held that second party will sell security at specific maturity is classified as

Agreement which incurs transaction between two parties and promise held that second party will sell security at specific maturity is classified as
  • A. repurchasing commercial notes
  • B. repurchase bills
  • C. purchase agreement
  • D. reverse repurchase agreement
  • Correct Answer: Option D

Speed with which prices of stocks are adjusted to unexpected news related to interest rates is called

Speed with which prices of stocks are adjusted to unexpected news related to interest rates is called
  • A. news efficiency
  • B. adjusted efficiency
  • C. expected efficiency
  • D. market efficiency
  • Correct Answer: Option D

Difference between price of underlying asset and exercise price of option is classified as

Difference between price of underlying asset and exercise price of option is classified as
  • A. extrinsic value of European option
  • B. intrinsic value of option
  • C. extrinsic value of option
  • D. intrinsic value of European option
  • Correct Answer: Option B

Forgone amount for holding balances of cash at time they are received is classified as

Forgone amount for holding balances of cash at time they are received is classified as
  • A. forgone cost
  • B. debt cost
  • C. opportunity cost
  • D. balances cost
  • Correct Answer: Option C

Gross proceeds of stock is $37000 and underwriter spread is $25000

Gross proceeds of stock is $37000 and underwriter spread is $25000
  • A. $25,000.00
  • B. $37,000
  • C. $12,000
  • D. $62,000
  • Correct Answer: Option C

Type of index in which current values of stock are added together and divided by value of stock on base date is classified as

Type of index in which current values of stock are added together and divided by value of stock on base date is classified as
  • A. value weighted index
  • B. herring weighted index
  • C. primary market index
  • D. stock market index
  • Correct Answer: Option A

Investors who want cash flows in near terms shows preference for

Investors who want cash flows in near terms shows preference for
  • A. interest portion of RIAPS
  • B. interest portion of STORI
  • C. interest portion of STRIPS
  • D. interest portion of bonds
  • Correct Answer: Option C

As compared to US certificate of deposit, interest rate paid on Eurodollar certificate of deposits is

As compared to US certificate of deposit, interest rate paid on Eurodollar certificate of deposits is
  • A. higher than other one
  • B. lower than other one
  • C. contraction than other one
  • D. expansionary than other one
  • Correct Answer: Option A

Type of contract which involves immediate exchange of funds and assets is classified as

Type of contract which involves immediate exchange of funds and assets is classified as
  • A. spot contract
  • B. forward contract
  • C. future contracts
  • D. present contract
  • Correct Answer: Option A

Primary mortgages involves

Primary mortgages involves
  • A. three institutions
  • B. single investor
  • C. multiple investor
  • D. multiple institutions
  • Correct Answer: Option B

Bonds issued by corporations for relatively longer term are classified as

Bonds issued by corporations for relatively longer term are classified as
  • A. long term bonds
  • B. short term bonds
  • C. corporate bonds
  • D. Federal Reserve bonds
  • Correct Answer: Option C

When price of underlying asset increases then good option is

When price of underlying asset increases then good option is
  • A. buy call option
  • B. sell call option
  • C. buy put option
  • D. sell put option
  • Correct Answer: Option A

Instrument used by Federal Reserve to smooth money supply and interest rates includes

Instrument used by Federal Reserve to smooth money supply and interest rates includes
  • A. treasury notes
  • B. repurchase agreements
  • C. commercial payable notes
  • D. commercial receivable notes
  • Correct Answer: Option B

If revenue bonds becomes default, bondholders must

If revenue bonds becomes default, bondholders must
  • A. not be paid
  • B. be paid
  • C. be sold
  • D. not be sold
  • Correct Answer: Option B