Accounting and Finance Questions

Q:

The interest-rate effect suggests that

A) an increase in the price level will increase the demand for money, reduce interest rates, and decrease consumption and investment spending B) an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending
C) a decrease in the supply of money will increase interest rates and reduce interest-sensitive consumption and investment spending D) an increase in the price level will decrease the demand for money, reduce interest rates, and increase consumption and investment spending
 
Answer & Explanation Answer: B) an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending

Explanation:

The interest-rate effect suggests that an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending.

Report Error

View Answer Report Error Discuss

Filed Under: Bank Interview
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 1762
Q:

Purchase return and allowances is a contra account

A) TRUE B) FALSE
Answer & Explanation Answer: A) TRUE

Explanation:

Purchase return and allowances is a contra account to purchases.

Report Error

View Answer Workspace Report Error Discuss

Subject: Bank Interview
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 1721
Q:

Which best describes the difference between stocks and bonds?

A) stocks allow investors to own a portion of the company; bonds are loans to the company B) stocks are more reliable investment;bonds tend to be more volatile
C) stocks allow investors to share in profits;bonds make investors responsible for company debts D) stocks pay interest to investors throughout the year; bonds only pay interest at fixed times during the year
 
Answer & Explanation Answer: B) stocks are more reliable investment;bonds tend to be more volatile

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Bank Interview
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO

0 1721
Q:

Which of the following statements about market segmentation is true?

A) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants. B) It is a process of creating an image or identity of the product in the minds of the target market.
C) It is a process of evaluating each segment's attractiveness and selecting one or more to enter. D) It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.
 
Answer & Explanation Answer: A) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Accounts Receivable
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

1 1718
Q:

Which investment type typically carries the least risk?

A) Mutual funds B) Treasury bonds
C) Savings account D) Individual stocks
 
Answer & Explanation Answer: C) Savings account

Explanation:

Different types of risk exist in ivesting schemes depending on what you've invested in.

 

Savings accounts are generally regarded as the least risky investments as in this we just save our wealth for future expenses.

Report Error

View Answer Report Error Discuss

Filed Under: Bank Interview
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 1716
Q:

Standard deviation measures which type of risk?

A) Non diversifiable B) Economic
C) Systematic D) Total
 
Answer & Explanation Answer: D) Total

Explanation:

Standard deviation measures total risk in stocks.

Report Error

View Answer Report Error Discuss

Filed Under: Accounts Payable
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

1 1705
Q:

In recording an accounting transaction in a double-entry system

A) there must always be entries made on both sides of the accounting equation. B) the amount of the debits must equal the amount of the credits.
C) there must only be two accounts affected by any transaction. D) the number of debit accounts must equal the number of credit accounts.
 
Answer & Explanation Answer: B) the amount of the debits must equal the amount of the credits.

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Bank Interview
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 1698
Q:

when a purchase on account is made the invoice becomes

A) debt B) credit
C) both A & B D) None of the above
 
Answer & Explanation Answer: A) debt

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Accounts Receivable
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 1686