**551. How many years will it take to pay off a Rs. 11,000 loan with a Rs. 1,241.08 annual payment and a 5% interest rate?**

A. 6 years

**B. 12 years**

C. 24 years

D. 48 years

**552. Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates?**

A. Fluctuations Risk

**B. Interest Rate Risk**

C. Real-Time Risk

D. Inflation Risk

**553. Which of the following set of ratios relates the market price of the firmâ€™s common stock to selected financial statement items?**

A. Liquidity Ratios

B. Leverage Ratios

C. Profitability Ratios

**D. Market Value Ratios**

**554. If a firm uses cash to purchase inventory, its quick ratio will?**

A. Increase

**B. Decrease**

C. Remain unaffected

D. Become zero

**555. Standard Corporation sold fully depreciated equipment for Rs.5,000. This transaction will be reported on the cash flow statement as a(n):**

A. Operating activity

**B. Investing activity**

C. Financing activity

D. None of the given options

**556. Which of the following ratios are particularly interesting to short term creditors?**

**A. Liquidity Ratios**

B. Long-term Solvency Ratios

C. Profitability Ratios

D. Market Value Ratios

**557. Which of the following is a special case of annuity, where the stream of cash flows continues forever?**

A. Ordinary Annuity

B. Special Annuity

C. Annuity Due

**D. Perpetuity**

**558. You just won a prize, you can either receive Rs. 1000 today or Rs. 1,050 in one year. Which option do you prefer and why if you can earn 5 percent on your money?**

A. Rs. 1,000 because it has the higher future value

B. Rs. 1,000 because you receive it sooner

C. Rs. 1,050 because it is more money

**D. Either because both options are of equal value**

**559. Which of the following ratios are particularly interesting to shortterm creditors?**

**A. Liquidity Ratios**

B. Long-term Solvency Ratios

C. Profitability Ratios

D. Market Value Ratios

**560. In which form of Business, owners have limited liability?**

A. sole proprietorship

B. partnership

**C. joint stock company**

D. none of the above

**NOTE IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG. PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX. THANK YOU**