E-PolyLearning

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

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

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

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

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