Deck 1: Securities Brokerage, Interest Calculation, and Hire Purchase Agreements

Question 1

While selling securities, brokerage is generally calculated on following price-

A)Face value
B)Sales price
C)Average of face value and sales price.
D)Book value

Answer 1

Sales price

Question 2

In case of ex-interest transaction, the amount of interest is calculated for the following period.

A)Upto the date of next interest payment
B)For the whole year
C)From the last date of interest payment till the date of transaction
D)For full 6 months.

Answer 2

From the last date of interest payment till the date of transaction

Question 3

Interest on security is calculated on -

A)It Face value
B)Its Market price
C)Its Purchase Price
D)None of these

Answer 3

It Face value

Question 4

Capital value in case of cum-interest purchase means -

A)The total amount paid to broker as purchase price.
B)Purchase price- Interest included + Brokerage
C)Market price on the date of purchase
D)Selling price + interest included

Question 5

Investment Accounts are kept

A)Only by Brokers
B)only by Companies
C)By any person who is an investor
D)By stock exchange only

Question 6

The interest on fixed dates are received only on following securities :

A)Equity shares of companies
B)Government securities
C)Shares of foreign companies
D)preference share of companies.

Question 7

In case of purchase and sales of securities ex- interest -

A)Interest is payable in addition to market price
B)Market price includes interest also
C)No separate calculation for interest is made
D)The seller gets interest on the next interest date.

Question 8

The Closing stock of investment is valued -

A)Always at purchase price
B)At cost or market price whichever is less
C)Always at market price
D)Purchase price less likely reduction in market price.

Question 9

Cum interest price of security is____________than ex- interest price.

A)Less
B)More
C)May be more or less
D)None of these

Question 10

The Capital Value of Investments in case of ex- interest purchase (subject to Brokerage) means :

A)Market price on the date of purchase
B)Purchase Price + Interest + Brokerage
C)Purchase price - Interest + Brokerage
D)None of these

Question 11

Cost of Investment does not include

A)Interset
B)Brokerage
C)Stamp Duty
D)None of these

Question 12

Total amount payable less its cash price is equal to_________  -

A)Depreciation
B)Interest
C)Market Price
D)Purchase Price

Question 13

Cash price of asset + Interest =_________price

A)Contract
B)Market
C)After Depreciation
D)Purchase

Question 14

Under hire-purchase system the amount of interest is charged to____________  Account

A)Asset
B)Purchaser
C)Profit and Loss
D)Seller

Question 15

At the end of the year, the interest paid and depreciation charged are transferred to the account

A)Asset
B)Profit and Loss
C)Purchaser
D)Seller

Question 16

In which of the following method of sales, if the purchaser can't pay the amount of instalment, the vendor can get the assets as return back ?

A)Cash Method
B)Sales or Return based sale
C)Instalment system
D)Hire purchase system

Question 17

By deducting cash price from the contract price of assets, the difference of the amount is called

A)Original Price
B)Sales price
C)Interest
D)Istalment

Question 18

Which of the following is not included in the hire purchase agreement ?

A)Interest rate
B)Instalment amount
C)Methods for depreciation
D)Number of Instalment

Question 19

In case of Hire purchase system, Interest is not included in-

A)Down payment
B)Hire purchase price
C)Intalment
D)None of these

Question 20

Under the Hire purchase system, goods are delivered to the hirer when -

A)First Instalment is paid
B)Agreement is signed
C)Last instalment is paid
D)None of these

Question 21

Interest is calculated on____________  under hire purchase agreement.

A)Cash Price
B)Hire purchase price
C)Balance of cash price outstanding at the beginning of instalment
D)None of these

Question 22

Under the Hire purchase system, ownership of goods is transferred to the hirer when -

A)First Instalment is paid
B)Agreement is signed
C)Last instalment is paid
D)None of these

Question 23

In case of Hire purchases, the depreciation is calculated on -

A)Hire purchase price
B)Contract Price
C)Cash price
D)None of these

Question 24

The main difference between sale under Hire purchase agreement and sales under Installment system is regarding

A)Delivery of the goods
B)Ownership of the goods
C)Sales price of the goods
D)None of these

Question 25

In pure single entry

A)Purchase and sales book is kept
B)Only cash book is kept
C)All susidiary books are kept
D)Certain subsidiary books are kept