AB Bank Recruitment Test for Asst.Officer
Held on 10-01-2014

1. In a decision to retain or replace equipment, the book value of the old equipment is a(n)

[AB Bank Asst. Officer-2014 : 2014]

1. opportunity cost

1

2. sunk cost

2

3. incremental cost

3

4. marginal cost

4

5. None of these

5
Answer
2. What does the credit term 2/10, n/30 mean ?

[AB Bank Asst. Officer-2014 : 2014]

1. 2% discount on amount paid within 30 days

1

2. Due amount is to be paid within 30 days

2

3. 2% discount on amount paid within 10 days

3

4. Both B&C

4

5. None of these

5
Answer
3. Which of the following should not be called "Sales"?

[AB Bank Asst. Officer-2014 : 2014]

1. Goods sold for cash

1

2. Office fixtures sold

2

3. Sale of item previously included in Purchases

3

4. Goods sold on credit

4

5. None of These

5
Answer
4. Working capital is calculated as:

[AB Bank Asst. Officer-2014 : 2014]

1. Current assets minus current liabilities

1

2. Total assets minus total liabilities

2

3. Long term liabilities minus current liabilities

3

4. Both B & C

4

5. None of these

5
Answer
5. Capital Expenditure is:

[AB Bank Asst. Officer-2014 : 2014]

1. The extra capital paid in by the proprietor

1

2. The costs of running the business on a day-to-day basis

2

3. Money spent on Buying fixed assets or adding value in them

3

4. Money spent on selling fixed assets

4

5. None of these

5
Answer