Questions of accounting for BCIS and BBA financial

Nobel College
(Pokhara University Affiliate)
End Chapter Quizzes Time ½ hours
Full Marks: 10
Pass Marks: 5
BBA: Semester – II
Name___________________________________

Roll No. _______________

Q.N.1. The interest rate that bondholder’s could obtain by investing in other bonds that are similar to the issuing firm’s bonds is:
a. The stated interest rate
b. Common interest rate
c. Market interest rate
d. Nominal interest rate
Q.N.2. An account that represents the difference between the amount of pension recorded as an expense and the amount of the funding payment made to the pension fund.
a. Funding status.
b. Prepaid/accrued pension cost account.
c. Outstanding pension cost account.
d. Accumulated benefit obligation.
Q.N. 3. Which of the following is characteristic of liabilities rather than of equity? (More than one answer may correct.
a. The obligation matures.
b. Compensation paid to the provider of the capital is deductible in the determination of taxable income.
c. The capital providers’ claims are residual in the event of liquidation of the business.
d. The capital providers normally have the right to exercise control over business operations.
Q. N. 4. Which of the following statements if (are) correct? (More than one statement may be correct)
a. Current liabilities are classified as clearly determinable, estimated, and contingent.
b. Liabilities result from some future transactions.
c. The proceeds from the issuance of bond is the difference between interest expenses and cash interest payment.
d. A bond issue is a technique for subdividing a very large loan into many small, transferable units.
Q.N. 5. The Belton Computers records its sales taxes in the same account as sales revenues. The sales tax rate is 6%. At the end of the current period, the Sales account has a balance of Rs. 265,000. The amount of sales tax payable is : )
a. Rs. 12,000
b. Rs. 15,000
c. Rs. 15,900
d. Rs. 18,000
Q. N. 6. Clear View Corporation issued its own Rs. 5,000, 60 day, noninterest-bearing notes to a bank. If the note is discounted at 9%, the proceeds to Clear View are:
a. Rs. 5,000
b. Rs. 5,075
c. Rs. 4,550
d. Rs. 4,925
Q.N. 7. A difference between the accounting for tax purpose and the accounting for financial reporting purpose. This types of difference occurs when an item affects one set of calculations but never affects the other set:
a. Casual difference item.
b. Temporary difference item.
c. Permanent difference item.
d. Conditional difference item.
Q. N. 8. The amount needed at the present time to be equivalent to a series of payments and interest in the future is _______________________.
Q. N. 9. _______________ is the measure of the amount owed to employees for pension if the employees retire at their existing salary level.
Q. N. 10. The portion of the long-term liability that will be paid within one year of the balance sheet date:
a. Contingent liability.
b. Current liability.
c. Estimated liability.
d. Current maturity of Long-term debt.

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