Questions of Topic 2+3: Public finance+ Corporate Finance

Which of the following taxes is direct tax?

• A. Sales tax

• B. Wealth tax

• C. Value added tax

• D. Service tax

Which is the main objective of a tax ?

• A. Increase in production

• B. Increase in consumption

• C. Raising public revenue

• D D. Reduction in capital formation

What is the correct characteristic of indirect tax?

• A. Paying entities are end-consumers

• B. Rate of tax payment based on income and profits

• C. Can not be transferred.

• D. Tax is levied on the income or profit of a taxpayer.

Stockholders' equity represents:

• A. The total amount of money a company has in its bank account.

• B.The total assets of a company minus its liabilities

• C. The amount of money that shareholders have invested in the company

• D. The total revenue generated by a company in a fiscal year

What distinguishes current assets from fixed assets?

• A.Current assets are tangible, while fixed assets are intangible.

• \ B.Current assets are used for long-term purposes, while fixed assets are short-term.

• C.Curren assets can be easily converted into cash within a year, while fixed assets are held for a long-term use.

• D. Current assets include land and buildings, while fixed assets include inventory and accounts receivable.

Which of the following is considered a long-term liability on a company's balance sheet?

• A. Accounts payable

• B. Short-term loans

• C. Issuing long-term bonds

• D. Accrued expenses

Which of the following is considered a long-term liability on a company's balance sheet?

• A. Accounts payable

• B. Short-term loans

• C. Issuing long-term bonds

• D. Accrued expenses

Which of the following represents a liability on a company's balance sheet?

• A. Retained earnings

• B. Accounts receivable

• C. Common stock

• D. Accounts payable

The current assets does not include:

• A. Cash

• B. Stock-in trade

• C. Furniture

• D. Advance Payment

Which is not a method to solve the budget deficit?

• A. Decrease taxes

• B.Monetizing

• C. Reduce public expenditure

• D. Borrowing