Reference no: EM132856414

Questions -

Q1. Company sells Rs. 2,000,000 general obligation bonds for 101. The interest rate on the bonds, paid quarterly, is 5 percent. Calculate the amount of quarterly interest that the company will be required to pay?

a. Rs. 110,000

b. Rs. 25,000

c. Rs. 100,000

d. Rs. 50,000

Q2. An unincorporated business , normally requires the services of an attorney.

a. Yes

b. No

Q3. All listed companies and their subsidiaries shall follow the International Financial Reporting Standards in regard to financial statements as are notified for the purpose in the official Gazette by the Commission, under section 225 of the Companies Act,

a. 2015 (Act);

b. 2017 (Act);

c. 2018 (Act);

d. none of the above

Q4. During the current year, ABC Inc., made cash sales of Rs 275,000 and credit sales of Rs 450,000. During the year, accounts receivable decreased by Rs 32,000. Find the amount of net sales reported as revenue in the income statement for the current year.

a. Rs. 725,000

b. Rs. 693,000

c. Rs. 275,000

d. Rs. 450,000

Q5. Asset's book value is equal to which of the following;

a. Asset's market value less its historical cost.

b. Book value relied on by secondary markets.

c. Replacement cost of the asset in the business.

d. Asset's cost at the time of acquisition less accumulated depreciation.