CIMAPRA17-BA1-1 Practice Questions| TestInsights

Question 1

Which of the following describes the effect an interest rate rise may have on a company?

APrices will have to increase due to increased inflationary pressures

BSales will increase as consumers have stable incomes in the short term.

CThe cost of financing projects through loans will increase

DThe cost of holding stock will reduce

Correct : C

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APrices will have to increase due to increased inflationary pressures

BSales will increase as consumers have stable incomes in the short term.

CThe cost of financing projects through loans will increase

DThe cost of holding stock will reduce

Question 2

A study on a sample of 100 university students reports that the correlation coefficient between the students' attendance at accounting final accounting exam grade is 0.7.

Which of the following statements is true?

A7% of an increase in grade can be explained by an increase in attendance.

BLow attendance at lectures caused students to achieve lower grades

CStudents who attended more lectures tended to achieve higher grades

DIf we considered the same sample of 100 students, the correlation between attendance at economics lectures and their final econ would also be positive

Correct : D

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A7% of an increase in grade can be explained by an increase in attendance.

BLow attendance at lectures caused students to achieve lower grades

CStudents who attended more lectures tended to achieve higher grades

DIf we considered the same sample of 100 students, the correlation between attendance at economics lectures and their final econ would also be positive

Question 3

A hairdressing salon can either invest in

1. New. more comfortable chairs at a cost of $5,000

2. New shop windows at a cost of $4,000

Over the next five years. Investment 1 will generate an additional amount of profit whose present value is $6,000. while Investment 2 additional amount of profit whose present value is $5,500

What is the net present value of the best project? Give your answer to the nearest whole dollar.

A$1500

B$1400

C$1300

D$1200

Correct : A

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A$1500

B$1400

C$1300

D$1200

Question 5

In the short term, if an organisation's income is lower than its expenditure, it is an example of:

Afinancial intermediation

Black of financial synchronisation

Cwhy equity capital is needed

Dfinancial surplus

Correct : B

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Afinancial intermediation

Black of financial synchronisation

Cwhy equity capital is needed

Dfinancial surplus

Curious about Actual CIMA Certificate in Business Accounting (CIMAPRA17-BA1-1) Exam Questions?

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