NAT IIM Management Science Finance Hard Test With Answers

NAT IIM Management Science Finance Hard Test

Sr. # Questions Answers Choice
1 Outstanding expenses are also known as Prepared expenses Accrued expenses Un-earned income None
2 The price at which assets will be sold at the end of its useful life is known as: Scrap value Residual value Written down value All of the above
3 What is amortization? Decrease in the value of fixed assets Decrease in the value of intangible assets Increase in the value of fixed assets Increase in the value of intangible assets
4 Assets which have to no market value are called Fictitious assets Liquid assets Intangible assets Real assets
5 Cash or goods taken away by owner for personal use from business are known as: Capital Drawings Revenue Expense
6 Doubtful debts are shown on: Profit side of statement of profit and loss Liabilities side of balance sheet Asset side of balance sheet Not shown anywhere
7 Doubtful debt are: Definite loss to the business Definite profit to the business Expected loss to the business Expected profit to the business
8 What are bad debts? Debts which are irrecoverable from the debtors Debts which are recoverable from the debtors Debts which are irrecoverable from the creditors Debts which are recoverable from the creditors
9 Depreciation is a loss due to wear and tear of an asset. Correct Incorrent May be None
10 A credit purchases are: If goods purchased and payment made at the same time If goods purchased and payment not made at the same time If goods sold and payment receive at the same time If goods sold and payment not receive at the same time
11 What are accrued expenses? The expenses that have been incurred during current year and paid till the end of current year The expenses that have been incurred previous year and paid in the current year The expenses that have been incurred during current year and not paid till the end of current year The expenses that have been incurred previous year and not paid till the end of current year
12 Tenor is the period of time ------------ which a bill becomes payable Before After Both a and b None
13 The bills which are drawn and accepted against the sale and purchase of goods on credits are called Trade bills Bill of exchange In-land bills Foreign bills
14 Rebate is the --------- in the amount of bill paid Premium Increase Expense Concession
15 How many of grace are given? 5 4 3 2
16 Endorsement is made: For settlement of debts For settlement of income For settlement of profit None
17 Which one of the following is not a negotiable instrument? Cheque Promissory note Bill of exchange None of the above
18 What is negotiable instrument? A document which is not transferable A document which is transferable A document which is accepted None
19 Dishonor of the bill occurs when: The drawer refuse to pay The acceptor refuses to meet the bill on due date The endorsee accepts to meet the bill None
20 In bill of exchange, the party who accepts a bill is known as: Drawer Drawee Payee Third party
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