CAT Questions

Q:

Why do capital expenditures increase assets (PP&E), while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings ?

Answer

Capital expenditures are capitalized because of the timing of their estimated benefits – the lemonade stand will benefit the firm for many years. The employees’ work, on the other hand, benefits the period in which the wages are generated only and should be expensed then. This is what differentiates an asset from an expense.


 

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Subject: Accounts Receivable Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

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Q:

Find the correctly spelt word?

A) Addulation B) Ominous
C) Adlation D) Omineous
 
Answer & Explanation Answer: B) Ominous

Explanation:

Ominous is the correctly spelt word in the given options. It means that giving the worrying impression that something bad is going to happen.

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Filed Under: English
Exam Prep: AIEEE , Bank Exams , CAT , GATE , GRE , TOEFL
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Q:

Energy stored in the nucleus of an atom is called

A) Nuclear energy B) Atomic energy
C) Potential energy D) Kinetic energy
 
Answer & Explanation Answer: A) Nuclear energy

Explanation:
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Filed Under: Physics
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Q:

Statement: It is estimated that about twenty lakh people will visit the city during the ensuing festival.
Courses of action:
a. The civic authority should monitor the crowd and restrict entry of the people beyond a manageable number.
b. The local police authority should be put on high alert to maintain law and order during the festival.
c. All the hospitals in the city should be put on high alert in case of any eventuality.

A) Only a follows B) Both b & c follows
C) Only c follows D) Both a and b sufficient
 
Answer & Explanation Answer: B) Both b & c follows

Explanation:

Clearly, People cannot be deprived of enjoying the festival for lack of arrangements. Also, it becomes necessary to deploy police to regulate big crowds and avert any mishap in public gatherings. Further, it costs nothing but might prove useful to put hospitals on alert to be ready to provide quick medical aid to patients in case of any eventuality. So, both b and c follow.

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Filed Under: Statement and Courses of Action
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Q:

The system of Local Bodies in India was introduced by-

A) Lord Ripon B) Lord Mayo
C) Lord Lytton D) Lord Curzon
 
Answer & Explanation Answer: A) Lord Ripon

Explanation:

Lord Ripon was the Viceroy of India from 1880 to 1884. He introduced Local Bodies (Local Self Governance) in 1882 and showed the taste of independence to Indians.

Image result for Lord Ripon

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Filed Under: Indian History
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Q:

Which is the largest coal producing country in the World?

A) India B) China
C) Russia D) New-zealand
 
Answer & Explanation Answer: B) China

Explanation:

China has been by far the biggest coal producing country over the last three decades. The country produced about 3.6 billion tonnes (Bt) of coal in 2012 accounting for over 47% of the world's total coal output.

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Q:

Is it possible for a company to show positive cash flows but be in grave trouble ?

Answer

Absolutely. Two examples involve unsustainable improvements in working capital (a company is selling off inventory and delaying payables), and another example involves lack of revenues going forward in the pipeline.

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Subject: Accounts Receivable Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

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Q:

The study of Brain is called as

A) Neurology B) Nephrology
C) Phrenology D) Neurobiology
 
Answer & Explanation Answer: C) Phrenology

Explanation:

The study of Brain is called as Phrenology

 

Neurology is a branch of medicine dealing with disorders of the nervous system.

Nephrology is the study of kidney.

Neurobiology or Neuroscience is the study of the nervous system

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Filed Under: General Science
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