SEBI Grade A Commerce & Accountancy Practice Question
SEBI Grade A Commerce & Accountancy Practice Question

SEBI Grade A Commerce & Accountancy Question Set-3

Practice Questions Set for SEBI Grade A 2022. SEBI Grade A Commerce & Accountancy Question Set with answers Phase I & Phase II. SEBI Grade A Study Material, Books, PDF’s, Free Notes and Mock Test for of Commerce Accountancy. As we all know that The Security Exchange Board of India (SEBI) has released the SEBI Grade A 2022 Notification for the recruitment of 120+ Assistant Managers across the country.

If you are preparing for SEBI Grade A 2022, you will come across a section on “Commerce & Accountancy”. In this post you will get sample questions for SEBI Grade A Commerce & Accountancy section. If you prepare this thoroughly, you can very easily crack SEBI Grade A 2022. If you want to crack SEBI Grade A 2022 exam then you should buy Best Books for SEBI Grade A 2022. Before starting the preparation for this exam you will aware of SEBI Grade A Previous Year Papers. These questions are important for SEBI Grade A Exam.

 Commerce & Accountancy Practice Question Set-3


1. Which is called as Dividend Ratio Method?

A. Dividend Yield Method

B. Debt Equity Method

C. Asset Method

D. Equity Method

E. None of these

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Correct Answer –A. Dividend Yield Method

Explanation: It is calculated by dividing the annual dividend per share by market value per share. The ratio is generally expressed in percentage form and is sometimes called dividend yield ratio.

2. If the current ratio is 2: 1 and working capital is Rs. 60,000, What is the value of the current assets?

A. Rs. 60,000

B. Rs. 1,00,000

C. Rs. 1,20,000

D. Rs. 1,80,000

E. None of these

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Correct Answer –C. Rs. 1,20,000

Explanation: 2nd

3. Capital gearing ratio indicates the relationship between

A. Assets and Capital

B. Loans and Capital

C. Equity shareholders fund and long term borrowed funds

D. Debentures and share capital

E. None of these

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Correct Answer –C. Equity shareholders fund and long term borrowed funds

Explanation:Capital gearing that refers to the amount of debt a company has relative to its equity.capital gearing is known as known as “financial leverage.” Companies with high capital gearing will have a large amount of debt relative to their equity. The gearing ratio is a measure of financial risk and expresses the amount of a company’s debt in terms of its equity. A company with a gearing ratio of 2.0 would have twice as much debt as equity.

4.Identify the item that is not taken into account in computing the current ratio.

A. Bank overdraft

B. Bank

C. Stock

D. Cash

E. None of these

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Correct Answer – A. Bank overdraft

Explanation: Bank overdrafts are drawn against credit lines that usually extend for periods beyond a year and are often renewed on expiry. In addition, most of the organizations keep such facilities to be used when needed. More or less, these instruments become a permanent source of financing. As a common practice, bank overdrafts are not callable on demand, adding a further degree of permanence. This explains why, as a convention, they are excluded from the calculation of the Current Ratio.

5. Given that fixed assets are at Rs. 600,000 current assets Rs. 400,000 share capital Rs. 500,000, fixed liabilities Rs. 2,50,000, Current liabilities Rs. 2,50,000, the solvency ratio will be

A. 20%

B.30%

C. 40%

D. 50%

E. None of these

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Correct Answer – A.20%

Explanation: Total assets/total liabilities=solvency ratio which means 1000000/500000=20%

6. Acid test ratio is equal to quick current assets divided by ____

A. Current liabilities

B. Current assets

C. Total liabilities

D. Trial Balance

E. Total assets

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 Correct Answer – A. Current liabilities

Explanation:The acid-test, or quick ratio, compares a company’s most short-term assets to its most short-term liabilities to see if a company has enough cash to pay its immediate liabilities, such as short-term debt. The acid-test ratio disregards current assets that are difficult to liquidate quickly such as inventory.

7. Which of the following items would be subtracted from net income when using the indirect method of calculating cash flows provided by operating activities?

A. Depreciation expense

B. Repayment of bonds payable

C.

D. A loss on the sale of equipment

E. None of these

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Correct Answer – C.

Explanation:

8. Which of the following would be considered an investing activity and a source of cash?

A. Purchase of equipment

B. Sale of BBB’s stock held as an investment

C. Issuance of corporate stock

D. Receipt of interest on savings account

E. None of the above

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Correct Answer – B. Sale of BBB’s stock held as an investment

Explanation: Sale of BBB’s stock held as an investment

9. The statement of cash flows does not include cash inflows and outflows for which of the following activities?

A. Financing activities

B.

C. Operating activities

D. Revenue activities

E. None of the above

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Correct Answer –D. Revenue activities

Explanation:Revenue activities

10. Which of the following is not an example of cash equivalents?

A. Certificates of Deposit

B. Money market accounts

D. Money market mutual funds

E. Euro Bond

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Correct Answer – E. Euro Bond

Explanation – Euro Bond

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SEBI Grade A (Assistant Manager) 2022 Preparation Book (VOL. I) of Commerce & Accountancy, Management, and Finance

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