| 41. | In the situation of bankruptcy, the stock which is recorded above common stock and below debt account is |
| a. | debt liabilities |
| b. | preferred stock |
| c. | hybrid stock |
| d. | common liabilities |
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Answer: (b).preferred stock
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| 42. | If security pays $5,000 in 20 years with 7% annual interest rate, the PV of security by using formula is |
| a. | 1292.10 dollars per year |
| b. | 1292.10 dollars |
| c. | 0.00077 dollars per year |
| d. | 16105.1 dollars per year |
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Answer: (b).1292.10 dollars
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| 43. | An interest rate which is quoted by brokers, banks and other financial institutions is classified as |
| a. | annuity rate |
| b. | perpetuity rate |
| c. | nominal rate |
| d. | external rate of return |
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Answer: (c).nominal rate
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| 44. | A company that sells products to customer without demanding immediate payment but record it in balance sheet as |
| a. | account payable |
| b. | account receivable |
| c. | account equivalent |
| d. | account investment |
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Answer: (b).account receivable
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| 45. | The nominal rate which is quoted to consumers on the loans is considered as |
| a. | annual percentage rate |
| b. | annual rate of return |
| c. | loan rate of return |
| d. | local rate of return |
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Answer: (a).annual percentage rate
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