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NTS CURRENT AFFAIRS ACCOUNTING SET 2
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1. World Trade Organization (WTO) is the successor organization of
ECO
GATT
NAFTA
League of Nations
2. Which from the following is NOT among essentials of a valid contract?
Consensus ad idem
More than two parties
Lawful consideration
Free consent
3. Raw materials that are remaining at the end of the reporting period are treated as
current assets
fixed assets
expenses
liabilities
4. The selling price of some goods is $1500 and cost to sell the goods is $200. What is the Net Realizable Value (NRV)?
$1000
$1200
$1300
$1500
5. Shares of a public company are usually traded on a
central bank
stock exchange
securities & Exchange Commission
hedge fund
6. Selling bonds is a way to
paying debt
improve exchange rate
lend loans
obtain loans
7. The IMF was established in _____ at the Bretton Woods Conference in the United States.
1944
1945
1946
1947
8. The IMFs primary mission is to ensure the stability of the international
money exchange system
money exchange rate
monetary policy
monetary system
9. International Monetary Fund (IMF) provides loans to member countries that are experiencing problems with
excessive loans
balance of payments
poverty
infrastructure development
10. 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
capital saving
opportunity cost
opportunity saving
internal rate of return
11. Which from the following derivative is not traded on exchanges?
Forward
Future
Bond
Option
12. An investment is believed to be risky if
it is dangerous
it has low returns
its returns are uncertain
its raw material is unavailable
13. The World Bank has two goals: to promote shared prosperity in a sustainable way, and to
end extreme poverty
reduce difference between rich and poor
invest on health and education
combat deadliest diseases
14. The World Bank provides loans and grants to pursue
balance of payments
capital projects
exports
education and health related projects
15. GATT is an abbreviation for
General Agreement on Transport and Trade
General Agreement on Tariffs and Trade
Generally Accepted Telegraphic Transfer
Generally Accepted on Trade and Telegraph
16. The headquarter of World Trade Organization (WTO) is located in
London
New York
Washington
Geneva
17. Which of the following is the safest investment?
Treasury bills
Government bond
Corporate bond
Stocks
18. Net Present Value (NPV) is calculated as
cash inflow - cash outflow
cash outflow - cash inflow
PV of cash inflow - PV of cash outflow
PV of cash outflow - PV of cash inflow
19. IMF provides assessments of latest public finance developments in its
Fiscal Monitor Reports
World Economic Outlook Reports
Global Financial Stability Reports
None of these
20. The ratio between amount of profit and investment is known as
NPV
opportunity cost
risk premium
rate of return
21. In Finance, risk is calculated by calculating the _____ of possible outcomes.
mean
standard deviation
variance
kurtosis
22. The Internal Rate of Return (IRR) is the rate of discount that makes Net Present Value (NPV)
zero
one
positive
negative
23. An investment should be accepted if its Net Present Value (NPV) is
0
1
positive
negative
24. An investment should be accepted if
Rate of Return > Opportunity Cost
Rate of Return < Opportunity Cost
Rate of Return = Opportunity Cost
A, B and C are irrelevant
25. World Trade Organization (WTO) was established on 1 January
1993
1995
1997
1999
26. USMCA (United States-Mexico-Canada) free trade agreement has replaced
GATT
NAFTA
ECO
League of Nations
27. 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
2 May 2020
4 May 2020
3 May 2020
2 or 4 May 2020
28. 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
2 May 2020
4 May 2020
3 May 2020
2 or 4 May 2020
29. Which of the following product is likely to be produced using division of labour?
Mud sculpture
Oil painting
Ceiling fan
A cup of coffee
30. Which source of financing is not available to a sole proprietor and a partnership?
bank loan
retained profit
trade credit
share issue
31. Which of the following is an example of a credit sale?
buying furniture with a debit card
exchanging a mobile with a new one
leasing land for one year
buying a car with a deposit and installments
32. Which of the following is not a function of a warehouse?
Facilitate the distribution
Stockpiling
Manufacture goods
Provide storage
33. At which stage the production is completed?
when product is manufactured
when product is used by the consumer
when product reach the consumer
when product reach the retailer
34. Which from the following risk is non-insurable?
faulty raw material
poor management
factory fire
vehicle accident
35. A letter of credit is opened (or issued) on behalf of a/an
exporter
importer
buying agent
bank
36. Professionals employed by insurance companies or pensions providers to calculate factors such as life expectancy and likely payouts are known as
Actuary
Accountant
Chartered Accountant
CFO
37. Exports are _____ while imports are _____.
debits, credits
credits, debits
assets, liabilities
liabilities, assets
38. What document will be sent to a buyer when the buyer returns some damaged goods?
order
receipt
quotation
credit note
39. An asset that pays a fixed amount of cash at regular intervals for a specified number of years is known as
annuity
perpetuity
simple interest
compound interest
40. An asset that pays the regular interest payments and repay the original amount at the maturity is known as
stock
share
bond
mortgage
41. A shareholder in a public limited company can sell his/her shares by
advertising them in a newspaper
asking the company to buy them back
offering them on the stock exchange
listing them online
42. Which of the following is not a function of a retailer?
offering after-sales services
exchanging faulty goods within warranty period
offering services to both consumer and wholesaler
providing a link between manufacturer and wholesaler
43. A person or a firm that brings buyers and sellers together and receive a commission when the deal is done, is called
agent
broker
retailer
underwriter
44. Central Depository Company of Pakistan is regulated by
Finance Ministry
State Bank of Pakistan
Federal Board of Revenue
Securities and Exchange Commission of Pakistan
45. If the Pakistani rupee gains strength, what from the following statement would NOT be true?
Imports would be cheaper
Exports would be expensive
foreign investment in Pakistan would be more attractive
foreign investment in Pakistan would be less attractive
46. An increase in supply _____ the price and _____ the quantity demanded.
lowers, raises
raises, lowers
lowers, lowers
raises, raises
47. A businessman opportunity should be accepted if it has _____ net present value.
zero
positive
negative
constant
48. In a monopolistic competition, a business obtains its maximum-profit position where
MR > MC
MR < MC
MR = MC
MR + MC = 1
49. The fundamental concept of Economics about resources is that the resources are
equally distributed
unequally distributed
scarce
unlimited
50. Consider a world without scarcity of resources. Then what would be the consequences?
All prices would be zero
Markets would be unnecessary
Economics would no longer be a useful subject
All of the above
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