Question 1

Investment made to earn regular income&#10;A)marketable securitie&#10;B)fixed investments&#10;C)Trade Investments&#10;D)short term investments

Accepted Answer

Trade Investments&#10;

Question 2

The price quoted includes interest&#10;A)cum interest&#10;B)ex-interest&#10;C)excluding interest&#10;D)None of these

Accepted Answer

Cum interest means "with interest," indicating that the price quoted includes interest.

Question 3

Ex - dividend quotation &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)including dividend&#10;B)excluding dividend&#10;C)excess of dividend&#10;D)cumulative of dividend

Accepted Answer

Ex-dividend quotation means the price of a stock does not include the upcoming dividend payment, indicating that a new buyer will not receive the dividend that has been declared.

Question 4

In respect of government security the price quoted is usually&#10;A)Ex- interest&#10;B)cum interest&#10;C)including interest&#10;D)none of above

Accepted Answer

Government securities are usually quoted ex-interest, meaning the price does not include the interest that has accrued since the last interest payment date.

Question 5

Short term investments made out of idle cash are called&#10;A)marketable securitie&#10;B)fixed investments&#10;C)trade investments&#10;D)none of these

Accepted Answer

Short term investments made out of idle cash are referred to as marketable securities. These are liquid financial instruments that can be quickly converted into cash at a reasonable price.

Question 6

Trade investment are investment made for &#8230;&#8230;&#8230;&#8230;&#8230;. Period&#10;A)short period&#10;B)long period&#10;C)Two years period&#10;D)None of these

Accepted Answer

Trade investments are investments made for a long period.

Question 7

Ex - interest means &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..&#10;A)Inclusive of interest&#10;B)Including interest&#10;C)Excluding interest&#10;D)None of these

Accepted Answer

"Ex-interest" means that the price is excluding interest. This term is often used in financial contexts to indicate that the quoted price does not include any accrued interest.

Question 8

Cum - interest means &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)Excluding interest&#10;B)Exclusive of interest&#10;C)cumulative interest&#10;D)none of the above

Accepted Answer

Cum-interest means cumulative interest, which refers to the total amount of interest earned or paid on an investment or loan over a specified period, including the compounding effect.

Question 9

Investment made for long period are called &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)marketable securitie&#10;B)Temporary investments&#10;C)Trade investment&#10;D)Short investment

Accepted Answer

Trade investments are typically made for the long term, where a company invests in the stock or assets of another company for strategic purposes. Unlike marketable securities or temporary investments, which are often made for short-term gains, trade investments are held with the intention of long-term benefits, such as gaining influence or control over another company's operations. Short investments, by their name, imply a shorter duration and are not meant for long-term holding.

Question 10

&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. investment made for earning regular income&#10;A)short term investment&#10;B)marketable securities&#10;C)Temporary investment&#10;D)Trade investment

Accepted Answer

Trade investment is made for earning regular income through dividends or interest, unlike short-term or temporary investments which are typically for capital gains.

Question 11

Investment in government debentures , bonds etc. come under &#8230;&#8230;&#8230;&#10;A)variable income bearing securities&#10;B)Temporary income bearing securities&#10;C)Fixed income bearing securities&#10;D)none of the above

Accepted Answer

The answer of Investment in government debentures , bonds etc....

Question 12

A ledger maintained where separate investment account prepared for a particular scrip is known as &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..&#10;A)investment ledger&#10;B)purchase ledger&#10;C)Sales ledger&#10;D)none of these

Accepted Answer

The answer of A ledger maintained where separate investment account...

Question 13

When bonus share are received the average cost of the existing shares are &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.&#10;A)Reduced&#10;B)Increased&#10;C)equal&#10;D)none of these

Accepted Answer

The answer of When bonus share are received the average...

Question 14

Bonus shares are issued by &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. free reserves&#10;A)Generalizing&#10;B)Capitalizing&#10;C)equalizing&#10;D)None of these

Accepted Answer

The answer of Bonus shares are issued by &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. free...

Question 15

Bonus shares are issued out of &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.&#10;A)capital reserve&#10;B)free reserve&#10;C)share premium&#10;D)none of these

Accepted Answer

The answer of Bonus shares are issued out of &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.&#10;A)capital...

Question 16

Right shares are issued to &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. share holders&#10;A)previou&#10;B)existing&#10;C)future&#10;D)None of these

Accepted Answer

The answer of Right shares are issued to &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. share...

Question 17

Investment account is &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;. Account&#10;A)Personal&#10;B)Nominal&#10;C)Real&#10;D)Revenue a/c

Accepted Answer

The answer of Investment account is &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;. Account&#10;A)Personal&#10;B)Nominal&#10;C)Real&#10;D)Revenue a/c...

Question 18

Sale of right is a &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. receipt in case of right issue&#10;A)Revenue&#10;B)capital&#10;C)deferred revenue&#10;D)none of these

Accepted Answer

The answer of Sale of right is a &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. receipt...

Question 19

Brokerage is &#8230;&#8230;&#8230;&#8230; in the cost of investment in the books of Purchase of investment&#10;A)Added&#10;B)deducted&#10;C)increased&#10;D)subtracted

Accepted Answer

The answer of Brokerage is &#8230;&#8230;&#8230;&#8230; in the cost of...

Question 20

Interest accrued up to the date of sale of investments added to&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..Price.&#10;A)Ex-interest&#10;B)Cum-interest&#10;C)inclusive interest&#10;D)None of these

Accepted Answer

The answer of Interest accrued up to the date of...

Question 21

The cost of right share is &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)added to the cost of investment&#10;B)no treatment is required&#10;C)Subtracted from the cost of investments&#10;D)None of the above

Accepted Answer

The answer of The cost of right share is &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)added...

Question 22

Long term investments are carried at &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..&#10;A)fair value&#10;B)cost price&#10;C)cost or market price which ever is less&#10;D)market price

Accepted Answer

The answer of Long term investments are carried at &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..&#10;A)fair...

Question 23

Cost of investment includes &#8230;&#8230;&#8230;&#8230;.&#10;A)purchase cost&#10;B)brokerage paid&#10;C)stamp duty paid&#10;D)All of the above

Accepted Answer

The answer of Cost of investment includes &#8230;&#8230;&#8230;&#8230;.&#10;A)purchase cost&#10;B)brokerage paid&#10;C)stamp...

Question 24

Short term investments are carried at &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..&#10;A)Fair price&#10;B)cost price&#10;C)cost or market price which ever is less&#10;D)Market value

Accepted Answer

The answer of Short term investments are carried at &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..&#10;A)Fair...

Question 25

&#8230;&#8230;&#8230;&#8230; account is real account&#10;A)Brokerage&#10;B)Stamp duty&#10;C)purchase&#10;D)Investments

Accepted Answer

The answer of &#8230;&#8230;&#8230;&#8230; account is real account&#10;A)Brokerage&#10;B)Stamp duty&#10;C)purchase&#10;D)Investments...

Deck 4: Investment and Stock Market Terminology