PTA Level 2

Question 1

A government issues a security that guarantees to pay $100 each year eternally. How much is it worth if the needed rate of return is...

Accepted Answer

$2,500

Answer

$5,300

Answer

$2,800

Answer

$1,300

Question 2

Which of the following represents a reflationary monetary policy?

Accepted Answer

Lowering interest rates helps stimulate the economy during a recession

Answer

Reducing government expenditure to rem in a financial deficit

Answer

Increasing education investments to increase the economy's long-term competitiveness

Answer

Introducing a tax on financial transactions to lower the amount of speculative transactions

Question 3

Which of the following is correct in terms of organizations?

Organizations accomplish more than individuals can do alone because they empower others to

(1) Share skills and information
(2) Maximize people' interests
(3) Specialise
(4) Pool resources

Accepted Answer

(1), (3) and (4)

Answer

(1), (2)and(3)

Answer

(1),(2)and(4)

Answer

(2), (3) and (4)

Question 4

In the short term, when an organization's income is less than its spending, it is an example of:

Accepted Answer

absence of financial synchronization

Answer

financial surplus

Answer

financial intermediation

Answer

why equity capital is required

Question 5

According to a study of 100 university students, the correlation coefficient between attendance and final accounting test grade is 0.7. Which of the following statements is accurate?

Accepted Answer

If we analyze the same sample of 100 students, the correlation between attendance at economics courses and their final econ will likewise be positive.

Answer

Low attendance during lectures resulted in lower marks.

Answer

An increase in attendance represents 7% of a grade point improvement.

Answer

Students who attended more lectures tended to receive higher grades.

Question 6

To be authoritative, the information in a management accounting report must include:

Accepted Answer

complete and relevant.

Answer

both financial and non-financial.

Answer

trusted and from reliable sources.

Answer

complete and reported in a timely manner.

Question 7

Maria just accepted a position as a management accountant for a well-known financial organization. She needs to comprehend the organization's financial situation. What should she do initially to get this understanding?

Accepted Answer

Record the organization's transactions in the principal entry books.

Answer

Submit the company's accounting to the IFRS.

Answer

Notify the tax authorities about the organization's revenues.

Answer

Total all of the daybooks and insert them into ledgers.

Question 8

A company that manufactures running trainers is considering selling to a rapidly rising Asian market. Which of the following assertions, based on Porter's Five Forces, is most likely to be incorrect?

Accepted Answer

Supplier power is likely to be high

Answer

Substitutes are likely to be high

Answer

Competitive rivalry is likely to be high

Answer

New entrants are likely to be low

Question 9

Joan is set to begin her new job as a secretary at a legal company. Which of the following is likely to be an important component of her job?

Accepted Answer

Ensuring that legal tasks are performed appropriately at the board level.

Answer

Ensure that internal procedures are highly managed, efficient, and effective.

Answer

Controlling transaction processing.

Answer

Controlling the provision of internal information

Question 10

Which of the following is an accurate definition of utilitarian ethics?

Accepted Answer

The guiding principle of behaviour should be the greatest happiness for the greatest number

Answer

The guiding principle of conduct should be to act with justice and courage

Answer

The guiding principle of conduct should be to do no harm

Answer

The guiding principle of conduct should be the consideration of the duty to respect other rational beings