Practice Static GA Questions and Answers

• Selling insurance is not a primary function of a bank.
• Bank of Calcutta was established in 1819
• Four Presidency Banks were merged to form Imperial Bank of India in 1921 
• Before RBI was established State Bank of India was performing all important central Banking functions
• DICGC provides insurance to all kinds of bank deposits of upto Rs.1 lakh 
• Six banks were nationalised in 1969 and 14 banks were nationalised in 1980 
• Scheme of Local Area Bank was announced in 1990
• Prathama Bank was sponsored by SBI 
• RRBs were set up with capital contribution of Centre Govt, Sponsor Bank and State Govt in 50:25:25 ratio
• LAB were established for mobilization of rural savings to make these available for investments in the local areas  
• Coastal Local Area Bank has been converted into Small Finance Bank
• Price earnings (PE) ratio shows how much an investor is willing to pay for each rupee of the earnings given the actual market price 
• ROE (Return on Equity) is calculated by dividing PAT (Profit after Tax) by Common Shareholders’ Equity
• Average receivables may also be expressed in terms of the number of days’ sales in receivables 
• Normally a relatively low inventory turnover is desirable
• Redemption of debentures will decrease the debt-equity ratio 
• Purchase of goods on credit will increase the debt-equity ratio 
• Lending money and collection of the principal and interest are classified on the statement of cash flows as investing activities.
• Issuance of common shares for cash is an example of a financing activity of a firm
• All expenses represent an outflow of cash during the accounting period.
• Revenue is recognized when the revenue is earned, not when the cash is received
• EBIT stands for Earning Before Income Tax
• Net income is income after deduction of tax and interest
• The consistency principle states that, once you adopt an accounting method, you shall continue to follow that in future accounting periods 
• "Accrual" refers to any individual entry recording revenue or expense in the absence of a cash transaction. 
• Company is perpetual or a going concern
• Prudence means being conservative – accountant to record liabilities and expenses as soon as they occur, but revenues only when they are assured or r...
• Unearned revenue is liability of a company 
• Ratio of Net Income to Number of Equity Shares is known as:
• DU PONT Analysis deals with:
• Return on Investment may be improved by:
• Gross Profit Ratio for a firm remains same but the Net Profit Ratio is decreasing. The reason for this could be:
• Gross Profit Margin is calculated by:
• Account Receivable Turnover ratio is calculated by
• Inventory Turnover measures the relationship of inventory with:
• Suppliers and Creditors of a firm are interested in
• Analysis of any financial Statement comprises
• Which of the following is Not correct regarding Money Market?
• Fill in the Blank: The _____ratio are measure of speed with which various accounts are converted into revenue from operations or cash.
• Fill in the Blank: The _________ is useful in evaluating credit and collection policies.