laboursonline – MCQs, Mock Tests | NTS NTS CURRENT AFFAIRS ACCOUNTING SET 2

World Trade Organization (WTO) is the successor organization of

1. ECO
2. GATT
3. NAFTA
4. League of Nations

✅ Correct Answer: 2

Which from the following is NOT among essentials of a valid contract?

1. Consensus ad idem
2. More than two parties
3. Lawful consideration
4. Free consent

✅ Correct Answer: 2

Raw materials that are remaining at the end of the reporting period are treated as

1. current assets
2. fixed assets
3. expenses
4. liabilities

✅ Correct Answer: 1

The selling price of some goods is $1500 and cost to sell the goods is $200. What is the Net Realizable Value (NRV)?

1. $1000
2. $1200
3. $1300
4. $1500

✅ Correct Answer: 3

Shares of a public company are usually traded on a

1. central bank
2. stock exchange
3. securities & Exchange Commission
4. hedge fund

✅ Correct Answer: 2

Selling bonds is a way to

1. paying debt
2. improve exchange rate
3. lend loans
4. obtain loans

✅ Correct Answer: 4

The IMF was established in _____ at the Bretton Woods Conference in the United States.

1. 1944
2. 1945
3. 1946
4. 1947

✅ Correct Answer: 1

The IMFs primary mission is to ensure the stability of the international

1. money exchange system
2. money exchange rate
3. monetary policy
4. monetary system

✅ Correct Answer: 4

International Monetary Fund (IMF) provides loans to member countries that are experiencing problems with

1. excessive loans
2. balance of payments
3. poverty
4. infrastructure development

✅ Correct Answer: 2

The return that is forgone by investing in a project instead of investing in a financial market at the same level of risk is known as

1. capital saving
2. opportunity cost
3. opportunity saving
4. internal rate of return

✅ Correct Answer: 2

Which from the following derivative is not traded on exchanges?

1. Forward
2. Future
3. Bond
4. Option

✅ Correct Answer: 1

An investment is believed to be risky if

1. it is dangerous
2. it has low returns
3. its returns are uncertain
4. its raw material is unavailable

✅ Correct Answer: 3

The World Bank has two goals: to promote shared prosperity in a sustainable way, and to

1. end extreme poverty
2. reduce difference between rich and poor
3. invest on health and education
4. combat deadliest diseases

✅ Correct Answer: 1

The World Bank provides loans and grants to pursue

1. balance of payments
2. capital projects
3. exports
4. education and health related projects

✅ Correct Answer: 2

GATT is an abbreviation for

1. General Agreement on Transport and Trade
2. General Agreement on Tariffs and Trade
3. Generally Accepted Telegraphic Transfer
4. Generally Accepted on Trade and Telegraph

✅ Correct Answer: 2

The headquarter of World Trade Organization (WTO) is located in

1. London
2. New York
3. Washington
4. Geneva

✅ Correct Answer: 4

Which of the following is the safest investment?

1. Treasury bills
2. Government bond
3. Corporate bond
4. Stocks

✅ Correct Answer: 1

Net Present Value (NPV) is calculated as

1. cash inflow - cash outflow
2. cash outflow - cash inflow
3. PV of cash inflow - PV of cash outflow
4. PV of cash outflow - PV of cash inflow

✅ Correct Answer: 3

IMF provides assessments of latest public finance developments in its

1. Fiscal Monitor Reports
2. World Economic Outlook Reports
3. Global Financial Stability Reports
4. None of these

✅ Correct Answer: 1

The ratio between amount of profit and investment is known as

1. NPV
2. opportunity cost
3. risk premium
4. rate of return

✅ Correct Answer: 4

In Finance, risk is calculated by calculating the _____ of possible outcomes.

1. mean
2. standard deviation
3. variance
4. kurtosis

✅ Correct Answer: 2

The Internal Rate of Return (IRR) is the rate of discount that makes Net Present Value (NPV)

1. zero
2. one
3. positive
4. negative

✅ Correct Answer: 1

An investment should be accepted if its Net Present Value (NPV) is

1. 0
2. 1
3. positive
4. negative

✅ Correct Answer: 3

An investment should be accepted if

1. Rate of Return > Opportunity Cost
2. Rate of Return < Opportunity Cost
3. Rate of Return = Opportunity Cost
4. A, B and C are irrelevant

✅ Correct Answer: 1

World Trade Organization (WTO) was established on 1 January

1. 1993
2. 1995
3. 1997
4. 1999

✅ Correct Answer: 2

USMCA (United States-Mexico-Canada) free trade agreement has replaced

1. GATT
2. NAFTA
3. ECO
4. League of Nations

✅ Correct Answer: 2

A company sent a job offer letter to a candidate on 2 May 2020. The candidate received the letter on 4 May 2020. The communication of offer is completed on

1. 2 May 2020
2. 4 May 2020
3. 3 May 2020
4. 2 or 4 May 2020

✅ Correct Answer: 2

A company sent a job offer letter to a candidate. The candidate sent the acceptance letter on 2 May 2020 and the company received the letter on 4 May 2020. The communication of acceptance is completed on

1. 2 May 2020
2. 4 May 2020
3. 3 May 2020
4. 2 or 4 May 2020

✅ Correct Answer: 1

Which of the following product is likely to be produced using division of labour?

1. Mud sculpture
2. Oil painting
3. Ceiling fan
4. A cup of coffee

✅ Correct Answer: 3

Which source of financing is not available to a sole proprietor and a partnership?

1. bank loan
2. retained profit
3. trade credit
4. share issue

✅ Correct Answer: 4

Which of the following is an example of a credit sale?

1. buying furniture with a debit card
2. exchanging a mobile with a new one
3. leasing land for one year
4. buying a car with a deposit and installments

✅ Correct Answer: 4

Which of the following is not a function of a warehouse?

1. Facilitate the distribution
2. Stockpiling
3. Manufacture goods
4. Provide storage

✅ Correct Answer: 3

At which stage the production is completed?

1. when product is manufactured
2. when product is used by the consumer
3. when product reach the consumer
4. when product reach the retailer

✅ Correct Answer: 3

Which from the following risk is non-insurable?

1. faulty raw material
2. poor management
3. factory fire
4. vehicle accident

✅ Correct Answer: 2

A letter of credit is opened (or issued) on behalf of a/an

1. exporter
2. importer
3. buying agent
4. bank

✅ Correct Answer: 3

Professionals employed by insurance companies or pensions providers to calculate factors such as life expectancy and likely payouts are known as

1. Actuary
2. Accountant
3. Chartered Accountant
4. CFO

✅ Correct Answer: 1

Exports are _____ while imports are _____.

1. debits, credits
2. credits, debits
3. assets, liabilities
4. liabilities, assets

✅ Correct Answer: 2

What document will be sent to a buyer when the buyer returns some damaged goods?

1. order
2. receipt
3. quotation
4. credit note

✅ Correct Answer: 4

An asset that pays a fixed amount of cash at regular intervals for a specified number of years is known as

1. annuity
2. perpetuity
3. simple interest
4. compound interest

✅ Correct Answer: 1

An asset that pays the regular interest payments and repay the original amount at the maturity is known as

1. stock
2. share
3. bond
4. mortgage

✅ Correct Answer: 3

A shareholder in a public limited company can sell his/her shares by

1. advertising them in a newspaper
2. asking the company to buy them back
3. offering them on the stock exchange
4. listing them online

✅ Correct Answer: 3

Which of the following is not a function of a retailer?

1. offering after-sales services
2. exchanging faulty goods within warranty period
3. offering services to both consumer and wholesaler
4. providing a link between manufacturer and wholesaler

✅ Correct Answer: 4

A person or a firm that brings buyers and sellers together and receive a commission when the deal is done, is called

1. agent
2. broker
3. retailer
4. underwriter

✅ Correct Answer: 2

Central Depository Company of Pakistan is regulated by

1. Finance Ministry
2. State Bank of Pakistan
3. Federal Board of Revenue
4. Securities and Exchange Commission of Pakistan

✅ Correct Answer: 4

If the Pakistani rupee gains strength, what from the following statement would NOT be true?

1. Imports would be cheaper
2. Exports would be expensive
3. foreign investment in Pakistan would be more attractive
4. foreign investment in Pakistan would be less attractive

✅ Correct Answer: 4

An increase in supply _____ the price and _____ the quantity demanded.

1. lowers, raises
2. raises, lowers
3. lowers, lowers
4. raises, raises

✅ Correct Answer: 1

A businessman opportunity should be accepted if it has _____ net present value.

1. zero
2. positive
3. negative
4. constant

✅ Correct Answer: 2

In a monopolistic competition, a business obtains its maximum-profit position where

1. MR > MC
2. MR < MC
3. MR = MC
4. MR + MC = 1

✅ Correct Answer: 3

The fundamental concept of Economics about resources is that the resources are

1. equally distributed
2. unequally distributed
3. scarce
4. unlimited

✅ Correct Answer: 3

Consider a world without scarcity of resources. Then what would be the consequences?

1. All prices would be zero
2. Markets would be unnecessary
3. Economics would no longer be a useful subject
4. All of the above

✅ Correct Answer: 4