Round 1_Finnacle Selection Process 2024-25

1. 1. What does inflation measure?

• A) The increase in the total value of all assets in an economy.

• B) The increase in the general price level of goods and services.

• C) The increase in the number of jobs available in the economy.

• D) The decrease in the unemployment rate.

2. 2. If a company's gross profit margin is increasing, what can be inferred?

• A) The company's cost of goods sold is increasing.

• B) The company's sales revenue is decreasing.

• C) The company's gross profit is increasing relative to its sales.

• D) The company's operating expenses are increasing.

3. 3. In the context of the accounting equation, which of the following transactions will not affect the total owner's equity of a company?

• A) Purchasing equipment with cash

• B) Receiving cash from a customer for services rendered

• C) Paying off a loan principal

• D) Declaring and paying dividends

4. What investment phenomenon involves the process of earning interest on interest, significantly increasing the value of your investment over time?

• A) Simple Interest

• B) Compounding

• C) Dividend Reinvestment

• D) Discounting

5. 5. What does a negative book value imply?

• A) The company has more liabilities than assets

• B) The company has a positive cash flow

• C) The company is highly profitable

• D) The company’s market value is higher than its book value

6. Which financial term refers to the practice of spreading investments across various financial assets to reduce risk?

• A) Leverage

• B) Diversification

• C) Speculation

• D) Hedging

7. 7. Which of the following statements is correct about a contingent liability?

• A) It is recorded as a liability in the financial statements.

• B) It is disclosed in the notes to the financial statements if probable.

• C) It is not recognized until it is certain.

• D) It affects the company's credit rating immediately.

8. 8. What is the latest milestone for India's GDP growth rate in 2024?

• A) Reached 6.5%

• B) Accelerated to 7.0%

• C) Slowed to 5.0%

• D) Stabilized at 6.0%

9. 9. Which type of cost remains constant per unit but changes in total with the level of production?

• A) Fixed Cost

• B) Variable Cost

• C) Semi-Variable Cost

• D) Sunk Cost

10. 10. Identify the personality

• A) Mohnish Pabrai

• B) Vijay Kedia

• C) Rakesh Jhunjhunwala

• D) Porinju Veliyath