Financial Management - Study Mode

[#1201] Wages and salaries of employees which company owns in this accounts are called
Correct Answer

(C) Both A and B

Explanation

Solution: Wages and salaries of employees which company owns in this accounts are called accrued expenses and accruals accounts.

[#1202] Securities future value is Rs 1,000,000 and present value of securities is Rs 500,000 with an interest rate of 4.5%, 'N' will be
Correct Answer

(C) 15.7473 years

[#1203] If payment of security is paid as Rs 100 at end of year for three years, it is an example of
Correct Answer

(D) annuity

Explanation

Solution: If payment of security is paid as Rs 100 at end of year for three years, it is an example of annuity. An annuity is a contract between you and an insurance company in which you make a lump sum payment or series of payments and, in return, obtain regular disbursements beginning either immediately or at some point in the future.

[#1204] Payment of security if it is made at end of each period such as beginning of year is classified as
Correct Answer

(A) annuity due

Explanation

Solution: Payment of security if it is made at end of each period such as beginning of year is classified as annuity due. An annuity due is a repeating payment that is made at the beginning of each period, such as a rent payment.

[#1205] Net worth is also called
Correct Answer

(A) asset net of liabilities

Explanation

Solution: Net worth is also called asset net of liabilities. Net worth is the value of all the non-financial and financial assets owned by an institutional unit or sector minus the value of all its outstanding liabilities.