General Knowledge: Business And Economics Questions Answer GK Quiz

Business And Economics Question Answer 2025, Business And Economics Quiz Questions 2025

Q. A capital equipment costing Rs. 2,50,000 today has Rs. 50,000 salvage value at the end of five years. If the straight-line depreciation method is used, what will be the book value of the equipment at the end of two years ?
1) Rs. 40,000
2) Rs. 1,50,000
3) Rs. 1,70,000
4) Rs. 2,00,000

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Q. If a firm is financed with both debt and equity, the firm's equity is known as -
1) Private equity
2) Preferred equity
3) Levered equity
4) Unleveraged equity

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Q. While preparing the Cash Flow Statements, the repayment of a loan during the year should be included under the heading of -
1) Financing activities
2) None of the given options
3) Operating activities
4) Investing activities

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Q. A person can be a Director of maximum ......... companies.
1) 17
2) 15
3) 7
4) 20

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Q. After completing a project analysis, an analyst should rely on which tool to make a final recommendation on the project ?
1) Decision tree analysis
2) Scenario analysis
3) Break even analysis
4) NPV analysis

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Q. YTM (Yield To Maturity) is that rate of discount that equates the discounted value of -
1) Other than those given as options
2) All current cash flows of a security with its current price
3) All future cash flows of a security with its current price
4) All future cash flows of a security with its future price

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Q. The ABC Ltd. reported earnings before interest and tax for the year 2016 as Rs. 260 crore and the yearly interest to be paid to the banks was Rs. 80 crore. What is the interest coverage ratio for the firm ?
1) 0.30
2) 2.50
3) 0.42
4) 3.25

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Q. Cash budget is prepared because it -
1) encourages over spending
2) helps in cash management
3) is legally compulsory
4) indicates liquidity

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Q. In ABC analysis, 'A' class consists of items having -
1) Accurate methods
2) Good records
3) Minimal records
4) No records

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Q. The comparison of financial data of same time period of different organisations engaged in similar business -
1) Time series analysis
2) Cross sectional analysis
3) Spatial data analysis
4) Working capital analysis

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