FREE PTA Level 2 Questions and Answers

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...

$5,300

$2,500

$2,800

$1,300

Correct! Wrong!

Which of the following represents a reflationary monetary policy?

Reducing government expenditure to rem in a financial deficit

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

Lowering interest rates helps stimulate the economy during a recession

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

Correct! Wrong!

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

(1), (3) and (4)

(1), (2)and(3)

(1),(2)and(4)

(2), (3) and (4)

Correct! Wrong!

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

absence of financial synchronization

financial surplus

financial intermediation

why equity capital is required

Correct! Wrong!

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?

Low attendance during lectures resulted in lower marks.

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

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

Students who attended more lectures tended to receive higher grades.

Correct! Wrong!

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

complete and relevant.

both financial and non-financial.

trusted and from reliable sources.

complete and reported in a timely manner.

Correct! Wrong!

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?

Submit the company's accounting to the IFRS.

Notify the tax authorities about the organization's revenues.

Total all of the daybooks and insert them into ledgers.

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

Correct! Wrong!

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?

Substitutes are likely to be high

Supplier power is likely to be high

Competitive rivalry is likely to be high

New entrants are likely to be low

Correct! Wrong!

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?

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

Controlling transaction processing.

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

Controlling the provision of internal information

Correct! Wrong!

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

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

The guiding principle of conduct should be to do no harm

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

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

Correct! Wrong!

Which of the following claims regarding the activity-based costing system is true when compared to the absorption costing method?

ABC provides more precise overhead allocation than absorption costing.

ABC is less costly to administer than an absorption costing approach.

ABC is easier to implement than an absorption costing approach.

ABC will have less information than an absorption costing system.

Correct! Wrong!