Question 1

A set of guidelines about dividend is known as _____ _____.
A)dividend policy
B)profit
C)loss
D)expenses

Accepted Answer

Dividend policy refers to the set of guidelines a company follows to decide how much of its earnings it will pay out to shareholders in the form of dividends.

Question 2

There are two approaches to dividend policy _____ _____.
A)relevance, irrelevance
B)final dividend
C)interims dividend
D)annual dividend

Accepted Answer

The two main approaches to dividend policy are relevance and irrelevance. The relevance theory, proposed by Gordon and Lintner, suggests that dividends are relevant for the valuation of a firm, and investors may prefer dividends for various reasons, including the desire for a stable income. The irrelevance theory, proposed by Modigliani and Miller, argues that dividend policy does not affect the value of a firm, assuming perfect capital markets, no taxes, and no transaction costs.

Question 3

XBRL stands for _____ _____ _____ _____.
A)u.s securities exchange communication adopted a final rule for adoption
B)ifsb released an expanded ifrs, xbrl
C)extensible business reporting language
D)ifar

Accepted Answer

XBRL stands for Extensible Business Reporting Language, which is a standard for exchanging business information.

Question 4

XBRL presents solution to _____ problem.
A)registered company
B)government corporation
C)communication
D)unregistered company

Accepted Answer

XBRL (eXtensible Business Reporting Language) is designed to improve the communication of financial data. It standardizes the way financial information is reported and exchanged, making it easier for companies, investors, and regulators to access and analyze data.

Question 5

The project with _____ co-efficient of variation should be selected.
A)lesser
B)management
C)higher
D)medium

Accepted Answer

The coefficient of variation is a measure of relative variability. It represents the ratio of the standard deviation to the mean. A lesser coefficient of variation indicates that the project has less relative variability or risk, making it a more stable and preferable choice.

Question 6

Under standard deviation _____ of cash flow is ascertained.
A)dispersion
B)subjective
C)objective
D)comparative

Accepted Answer

Standard deviation measures the dispersion or variability of a set of data points, in this case, the variability of cash flows around their mean.

Question 7

Capital rationing is selection of investment proposal under _____.
A)constraint
B)weakness of capital market
C)funds are scare today
D)very strong

Accepted Answer

Capital rationing involves making investment decisions under a constraint, typically a budget or capital limitation, which restricts the amount of funds available for investment projects.

Question 8

_____ provides details of compliance of corporate governance.
A)annual report
B)board of directors
C)independent audit committee
D)employees

Accepted Answer

The annual report typically includes a section on corporate governance, detailing the company's compliance with governance standards and practices.

Question 9

Investment in venture capital fund carries _____% risk.
A)1.5
B)2
C)1
D)0.5

Accepted Answer

Investment in venture capital fund carries 1.5% risk.

Question 10

MPBF refers to
A)maximum permissible bank finance
B)minimum permissible bank financ
C)bank overdraft
D)cash credit

Accepted Answer

MPBF stands for Maximum Permissible Bank Finance, which is a method used by banks to assess the maximum loan amount that can be extended to a borrower based on the borrower's current assets and liabilities.

Question 11

Ploughing back of profit means
A)declaration of dividend
B)retainning profits
C)re-investing profits
D)building reserves

Accepted Answer

Ploughing back of profit refers to retaining profits within the company rather than distributing them as dividends, allowing the company to reinvest in its operations or build reserves.

Question 12

The first taxonomy for financial reporting was released on
A)30th june,2003
B)31st july,2000
C)26th january, 2003
D)15th august, 2009

Accepted Answer

The first taxonomy for financial reporting, specifically the XBRL (eXtensible Business Reporting Language) taxonomy, was released on 31st July, 2000. This was a significant step in improving the efficiency and accuracy of financial data reporting and exchange.

Question 13

Banks in India have to achieve C.A. Ratio of
A)9%
B)15%
C)5%
D)10%

Accepted Answer

The Cash Reserve Ratio (CRR) requirement for banks in India is set by the Reserve Bank of India (RBI) to regulate the amount of funds that banks must keep in reserve with the RBI. As of my last update, the CRR is 4%, but historically, it has been around 4% to 6%. The options provided do not accurately reflect the current or typical CRR rates. However, if we consider the context of maintaining a certain percentage of reserves, none of the options directly match the typical CRR rates. The question might be referring to a different ratio or has provided incorrect options. It's important to check the latest RBI guidelines for the most accurate and up-to-date requirements.

Question 14

Amalgamation is governed by
A)as 14
B)as 3
C)as 21
D)as 32

Accepted Answer

Amalgamation is governed by Accounting Standard (AS) 14, which deals with accounting for amalgamations and the treatment of any resultant goodwill or reserves.

Question 15

The % of provision required on sub-standard asset on secured portion is:
A)15%
B)12%
C)10%
D)5%

Accepted Answer

The provision required on the secured portion of a sub-standard asset is 15%.

Question 16

The % of provision on unsecured portion of doubtful asset is:
A)125%
B)100%
C)75%
D)25%

Accepted Answer

The correct percentage of provision on the unsecured portion of doubtful assets is 100%. This means that banks or financial institutions are required to set aside the full amount (100%) of the unsecured portion of assets classified as doubtful to cover potential losses.

Question 17

Cash credit and overdrafts is considered as NPA when is remains out of order for more than:
A)90 days
B)30 days
C)60 days
D)45 days

Accepted Answer

Cash credit and overdrafts are considered as Non-Performing Assets (NPA) when they remain out of order for more than 90 days.

Question 18

The models known as bird in the hand argument
A)gordon\s model
B)walter\s model
C)fayol's model
D)henry model

Accepted Answer

Gordon's model is also known as the "bird in the hand" argument.

Question 19

Loans upto Rs. 1,00,000 against gold and silver ornaments carry risk
A)50%
B)10%
C)100%
D)20%

Accepted Answer

Loans up to Rs. 1,00,000 against gold and silver ornaments are considered to carry a risk weight of 10% as per the Reserve Bank of India's guidelines for banks. This risk weight is used to calculate the capital adequacy of banks.

Question 20

Provision for standard asset in respect of advances to commercial Real Estate sector is
A)1%
B)2%
C)2%.
D)0%

Accepted Answer

The answer of Provision for standard asset in respect of...

Quiz 1: Financial Terminologies and Concepts

A set of guidelines about dividend is known as _ _.

There are two approaches to dividend policy _ _.

XBRL stands for ___ _ _ ___.

XBRL presents solution to _____ problem.

The project with _____ co-efficient of variation should be selected.

Under standard deviation _____ of cash flow is ascertained.

Capital rationing is selection of investment proposal under _____.

_____ provides details of compliance of corporate governance.

Investment in venture capital fund carries _____% risk.

MPBF refers to

Ploughing back of profit means

The first taxonomy for financial reporting was released on

Banks in India have to achieve C.A. Ratio of

Amalgamation is governed by

The % of provision required on sub-standard asset on secured portion is:

The % of provision on unsecured portion of doubtful asset is:

Cash credit and overdrafts is considered as NPA when is remains out of order for more than:

The models known as bird in the hand argument

Loans upto Rs. 1,00,000 against gold and silver ornaments carry risk

Provision for standard asset in respect of advances to commercial Real Estate sector is