finance MCQs – Page 14

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 Review each marked answer and report any item that may be outdated or unclear.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
261. Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________?
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A. Common stock value is used

B. Component cost is used

C. Cost of capital is used

D. Asset valuation is used

262. A technique uses in comparative analysis of financial statement is_________?
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A. Preference analysis

B. Common size analysis

C. Graphical analysis

D. Returning analysis

263. An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating__________?
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A. Investment period

B. Forecasted period

C. Payback period

D. Original period

264. Tendency of moving together of two variables is classified as_____________?
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A. Variables tendency

B. Move tendency

C. Double tendency

D. Correlation
265. Payment of security if it is made at end of each period such as beginning of year is classified as______________?
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A. Annuity due

B. Payment fixed series

C. Ordinary annuity

D. Deferred annuity

266. The total assets divided by common equity is a formula uses for calculating _________?
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A. graphical multiplier

B. turnover multiplier

C. stock multiplier

D. equity multiplier
267. An equation in which total assets are multiplied to profit margin is classified as _________?
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A. preference equation

B. common equation

C. turnover equation

D. du DuPont equation
268. Total amount of depreciation charged on long term assets is classified as______________?
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A. Accumulated appreciation

B. Depleted depreciation

C. Accumulated appreciation schedule

D. Accumulated depreciation
269. Purchase cost of assets over its useful life is classified as_________?
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A. Depreciation

B. Appreciated liabilities

C. Appreciation

D. Appreciated assets

270. Financial securities that can be converted into cash at closing to their book value price are classified as_______________?
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A. Short-term investments

B. Long-term investments

C. Inventories

D. Cash equivalents
271. In capital budgeting, a technique which is based upon discounted cash flow is classified as ___________?
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A. net future value method

B. net capital budgeting method

C. net equity budgeting method

D. net present value method
272. Betas tend to move towards 1.0 with passage of time are classified as__________?
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A. Varied betas

B. Historical betas

C. Standard betas

D. Adjusted betas
273. Low price for earnings ratio is result of________________?
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A. High riskier firms

B. Low riskier firms

C. Low dividends paid

D. High marginal rate

274. An income available for shareholders after deducting expenses and taxes from revenues is classified as______________?
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A. Net earnings

B. Net expenses

C. Net income

D. Net revenues

275. According to capital asset pricing model assumptions, investors will borrow unlimited amount of capital at any given___________?
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A. Identical and fixed returns

B. Fixed rate of interest

C. Risk free rate of interest

D. Risk free expected return

276. The graph which is plotted for projected net present value and capital rates is called ___________?
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A. net future value profile

B. net gain profile

C. net present value profile

D. net loss profile

277. Rate of return which is asked by investors is classified as_____________________?
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A. Weighted average cost of capital

B. Weighted cost of capital

C. Mean cost of capital

D. Average cost of capital

278. In financial planning, most high option price will lead to__________?
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A. Longer option period

B. Smaller option period

C. Higher price

D. Lesser price

279. The companies that help to set benchmarks are classified as ___________?
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A. competitive companies

B. return companies

C. benchmark companies

D. analytical companies

280. Correct measure of risk of stock is called_____________?
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A. Beta

B. Alpha

C. Market relevance

D. Variance