Business and Finance MCQs Test 07 Preparation Online Leave a Comment / Economics / By Shani Malik Business and Finance MCQs Test 07 Preparation Online 1. After debentures are redeemed, the balance in the sinking fund account is transferred to:A. Profit and loss accountB. Secret reserveC. Capital reserveD. General reserve Loading... 2. Which is the source of interest for a bank?A. AdvancesB. Bills discountedC. All of the aboveD. Investments Loading... 3. The profit on re-issuing forfeited shares is transferred to:A. General reserveB. Capital reserveC. Revaluation reserveD. Capital redemption reserve Loading... 4. To the extent redemption of preference shares takes place out of profits, an equal amount has to be transferred to:A. Share premium accountB. Development rebate reserveC. Capital redemption reserveD. General reserve Loading... 5. The excess of purchase price over net assets is:A. Revenue reserveB. GoodwillC. Preliminary expenseD. Capital reserve Loading... 6. When shares are forfeited, the share capital account is debited by:A. Calls-in-arrearsB. Paid-up amountC. Called-up-amountD. Face value of shares Loading... 7. Demand deposits mean?A. Saving accountB. Chequeable depositsC. Time depositsD. Profit loss account Loading... 8. Divisible profits do not include:A. Post-incorporation profitsB. Reserve fundC. Profit on revaluation of assetsD. None of the above Loading... 9. A preliminary expense is a:A. Non-current liabilityB. Current liabilityC. Current assetD. Fictitious asset Loading... 10. The share application account is a:A. Asset accountB. Personal accountC. Real accountD. Nominal account Loading... 11. In the balance sheet of a company, the items goodwill, patents and trade marks are shown under the heading:A. Current assetsB. Loans and advancesC. Fixed assetsĀ D. Investments Loading... 12. When a commercial bank creates credit, its immediate effect is that it raises?A. The exchange rate B. The money supply C. The interest rate D. The real national income Loading... 13. Which is a function of a commercial bank?A. Making loansB. Fixing the exchange rateC. A cting as a govt. banker D. Issuing bank notes Loading... 14. An asset is liquid when it is?A. Earning a good rate of returnB. Being traded frequentlyC. All of the aboveD. Is money or easily converted into money Loading... 15. A bank has Rs. 5 million in cash. The minimum reserve ratio is 20%. What is maximum potential increase in total deposits?A. 0 mB. 25 mC. 10 mD. 5 m Loading... 16. Total number of bank branches in Pakistan is?A. More than 15,000 but less than 20,000 B. More than 20,000 but less than 25,000C. More than 10,000 but less than 15,000D. More than 5000 but less than 10,000 Loading... 17. Premium on redemption of debentures is accounted for in the:A. Real accountB. Nominal accountC. Assets accountD. Personal account Loading... 18. When a commercial bank creates credit, it immediately raises?A. Its assetsB. Money supplyC. (a) and (b) of aboveD. Its liabilities Loading... 19. Commercial banks are able to create money by?A. Selling government bondsB. Making loansC. Moral suasion D. Printing money Loading... 20. The following is not a bank liability?A. LoansB. Demand depositC. Saving depositD. Time deposit Loading... Loading... Related NTS Results Post:Biology Mcqs Test 10 Online PreparationBiology Mcqs Test 13 Online PreparationChemistry MCQs Test 06 Online PreparationChemistry MCQs Test 05 Online PreparationBiology Mcqs Test 15 Online PreparationChemistry MCQs Test 07 Online PreparationIslamiat Mcqs Test 02 Online PreparationBiology Mcqs Test 14 Online Preparation