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Bank - A - Lysis : Round - 1 (Quiz)

Total questions: 25

Worksheet time: 15mins

Name
Class
Date
1.

NPCI international payments Limited (NIPL) has signed a MOU to allow citizens to receive international payments in real-time into their bank accounts with help of an active UPI id by which company?

a)

Transfast

b)

TerraPay

c)

MoneyGram

d)

Xoom

2.

If IPO is undersubscribed (subscribed less than 90) in that case what can be done among the following :

a)

Shares remains unsubscribed

b)

 Can enter into a contract with underwriters to purchase unsold shares

c)

 Date range to subscribe IPO are extended

d)

 Board of directors are asked to subscribe to IPO

3.

A Steel Manufacturing Plant deposits one crore INR with the electricity board.

What is that deposit called?

a)

  Prepaid Expense

b)

  Accrued Expense

c)

Not an expense

d)

None of the above

4.

Tax payable under minimum alternate Tax (MAT) is 10,00,000, and Tax payable as per standard provision is 6,00,000, which of the following is determined tax outgo ?

a)

10,00,000

b)

4,00,000

c)

6,00,000

d)

2,00,000

5.

 High loan to value ratio indicates :

a)

Low Risk

b)

High Risk

c)

No Risk

d)

None of the above

6.

 _______ is for individuals and ______ is for joint stock companies, partnerships, etc.

a)

Credit scoring & Credit rating

b)

Credit scoring & Credit scoring

c)

Credit Rating & Credit scoring

d)

Credit Rating & Credit Rating

7.

  If the risk-free return is 5%, the market rate of return is 12%, beta value is 1.7, the expected rate of return would be?

a)

12.75

b)

13.56

c)

16.90

d)

17.17

8.

An investment offered that will potentially double your money after 15 years.

What would be the rate of return that is provided to you? (Roundoff to 2 decimal)

a)

5.67%

b)

6.52%

c)

5.32%

d)

4.73%

9.

While calculating the Debt Service Coverage Ratio (DSCR) for a firm, it was found that total debt service is half of the net operating income; then it represents what?

a)

Borrower unable to pay the debt obligations

b)

Enough income is generated to pay the debts

c)

DSCR is low which indicates lower performance

d)

None of the above

10.

When a company pays an amount of Rs. 5000 of its accounts payable, what happens to the total amount of change in the company's working capital?

a)

The total decreases by Rs 5000

b)

The total increases by Rs 5000

c)

The total remains the same

d)

None of the above

11.

If the fixed cost is Rs.5500, the variable cost per unit is Rs.17, and the selling price per unit is Rs.37.

What is the breakeven point (in terms of units)?

a)

320 Units

b)

269 Units

c)

275 Units

d)

250 Units

12.

The credit balance of retained earnings account represents?

a)

Distributed Profit

b)

Undistributed Profit

c)

Net Profit

d)

Gross Profit

13.

An Unclaimed dividend is shown as ___________ in the financial statements.

 

a)

Assets

b)

Is not a part of financial statements

c)

Liabilities

d)

As a deduction from Paid-up Capital

14.

Under the Accounting Equation Approach (American Model),

what type of accounts exist?

a)

Assets Account

b)

Liability Account

c)

Revenue Account

d)

All of them mentioned here

15.

Does the term “Biological Asset” come under the purview of any Accounting Standard?

a)

Yes

b)

No

c)

No, but it is defined under the Income Tax Act, 2013

d)

Yes, but is not valid anymore

16.

To find the increase or decrease in the salary paid of income statements between 2020 and 2021 which type of analysis can be used?

a)

Horizontal Analysis

b)

Vertical Analysis

c)

Trend Analysis

d)

Ratio Analysis

e)

A or C

17.

Order book has which of the following price components ?

i.   Bid Price

ii.  Offer Price

iii. Target Price

iv. Last Traded Price

a)

  i & ii

b)

  i & iii

c)

   iii & iv

d)

  iv & ii

18.

Suppose the company's profits remain the same and the share capital of the company increases.

What happens to the company's Return on Equity?

a)

Increases

b)

Decreases

c)

Stays the same

d)

Decreases then Increases

19.

Calculate book value per share of the firm which has gone through a stock split of 1:2 followed by bonus issue of 3:2 (Given initial book value is 100 Rs)

a)

50

b)

25

c)

35

d)

20

20.

What is the reason that Banks have a higher D/E ratio than other companies?

 

a)

They deal in lots of Deposits

b)

They usually take advantage of leverage

c)

Equity subscription is usually low in banking sector

d)

Banks have a lower D/E ratio and the statement given is not true

21.

Calculate the price of the stock giving perpetual dividend of 10 Rs annually with YTM = 5 %

a)

100

b)

150

c)

200

d)

250

22.

If you wish to buy a 100% stake in a company, the better gauge of company valuation is

a)

Earning Yield

b)

Dividend Yield

c)

EV/EBITDA

d)

P/E

23.

 Wealth of a shareholder increases with increase in-

a)

EPS

b)

Market Value of the firm

c)

Dividend

d)

Both B & C

24.

 If the share capital of company is Rs 10,03,00,000. Other Equity (Reserves and surplus) is 30,09,00,000 and face value is Re 1 per share, the book value per share will be

a)

Rs 5

b)

Rs 4

c)

Rs 6

d)

Rs 3

25.

Dividends received will come under which of the following sections of the Cash Flow Statement for a Company?

a)

Cash Flow from Financing Activities

b)

Cash Flow from Investing Activities

c)

Cash Flow from Operating Activities

d)

It is not shown in the Cash Flow Statement