finance MCQs – Page 10

Practise multiple-choice questions from finance for competitive examinations and subject revision. Review each marked answer and report any item that may be outdated or unclear.

finance Mcqs
181. In financial markets, period of maturity less than one year of financial instruments is classified as________________?
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A. Short-term

B. Intermediate term

C. Long-term

182. Quick Ratio is also known as_______________?
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A. Cash Ratio

B. Solvency Ratio

C. Acid-test Ratio

D. Current Ratio

183. If coupon rate is less than going rate of interest, then bond will be sold________?
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A. Seasoned par value

B. Seasoned par value

C. At par value

D. More than its par value
184. The most important item that can be extracted from financial statements is the actual ________ of the firm.
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A. Net Present Value

B. Cash Flow

C. None of the given options

D. Net Working Capital

185. Which of the following set of ratios is used to assess a businesss ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time?
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A. Liquidity Ratios

B. Profitability Ratios

C. Market Value Ratios

D. Leverage Ratios

186. Which of the following is known as the group of assets such as stocks and bonds held by an investor ?
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A. None of the given options

B. Capital Structure

C. Portfolio

D. Stock Bundle

187. In mutually exclusive projects, project which is selected for comparison with others must have____________?
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A. All of above

B. Lower net present value

C. Zero net present value

D. Higher net present value
188. Which of the following refers to the difference between the sale price and cost of inventory?
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A. Markdown

B. Net worth

C. Net loss

D. Markup
189. Which of the following ratios are particularly interesting to short-term creditors?
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A. Profitability Ratios

B. Long-term Solvency Ratios

C. Market Value Ratios

D. Liquidity Ratios
190. If a firm uses cash to purchase inventory, its quick ratio will?
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A. Remain unaffected

B. Become zero

C. Increase

D. Decrease
191. A markets which deals with long-term corporate stocks are classified as
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A. Liquid markets

B. Capital markets

C. Short-term markets

D. Money markets

192. An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be__________?
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A. 3.5 years

B. 4.5 years

C. 4 years

D. 5 years

193. Which of the following equation is known as Cash Flow (CF) identity?
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A. CF to Stockholders = CF to Creditors + CF from Assets

B. CF from Assets = CF to Creditors + CF to Stockholder

C. CF from Assets = CF to Creditors CF to Stockholder

D. CF from Assets = CF to Stockholders CF to Creditors

194. Document in a corporation which consists of amount of stock, name and addresses of directors is classified as_____________?
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A. Liability plan

B. Corporation paperwork

C. Charter

D. Stock planning

195. In capital budgeting, term of bond which has great sensitivity to interest rates is______________?
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A. Short-term bonds

B. Internal term bonds

C. Long-term bonds

D. External term bonds

196. Balance Sheet is based upon which of the following formula?
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A. Assets + Stockholders equity = Liabilities

B. Assets + Liabilities = Stockholders equity

C. Assets = Liabilities + Stockholders equity

D. Assets = Liabilities Stockholders equity

197. In capital budgeting, positive net present value results in_________________?
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A. Zero economic value added

B. Positive economic value added

C. Negative economic value added

D. Percent economic value added

198. Between the two identical bonds having different maturity periods, the price of the ______ bond will change less than that of ______ bond.
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A. lower-coupon; higher-coupon

B. short-term; long-term

C. None of the given options

D. long-term; short-term

199. Rate of return (in percentages) consists of___________?
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A. Return yield + stable yield

B. Capital gain yield interest yield

C. Return yield + unstable yield

D. Par value + market value

200. If coupon rate is more than going rate of interest, then bond will be sold________?
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A. More than its par value

B. At par value

C. Seasoned par value

D. Below its par value