finance MCQs – Page 22

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 Review each marked answer and report any item that may be outdated or unclear.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
421. An uncovered cost at the 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. forecasted period

B. original period

C. investment period

D. payback period
422. The cash flow which starts negative then positive then again positive cash flow is classified as ___________?
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A. non-normal costs

B. normal cash flow

C. normal costs

D. non-normal cash flow
423. Accounts payable, accruals and notes payable are listed on balance sheet as________?
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A. Non-current liabilities

B. Accumulated liabilities

C. Current liabilities

D. Accrued liabilities

424. The price per share is $30 and earnings per share is $3.5 then price for earnings ratio would be ___________?
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A. 0.11

B. 8.57 times

C. 0.0857

D. 0.11 times

425. Other factors held constant, the greater project liquidity is because of ___________?
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A. shorter payback period

B. greater payback period

C. greater project return

D. less project return

426. In calculation of net cash flow, depreciation and amortization are treated as________?
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A. Non-cash charges

B. Current liabilities

C. Income expenses

D. Non-cash revenues

427. An equity multiplier is multiplied to return on assets to calculate __________?
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A. return on assets

B. return on turnover

C. return on multiplier

D. return on stock

428. In capital budgeting, an internal rate of return of the project is classified as its __________?
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A. negative rate of return

B. positive rate of return

C. external rate of return

D. internal rate of return
429. Values recorded as determined in marketplace are considered as_______________?
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A. Book values

B. Market values

C. Appreciated values

D. Depreciated values

430. Payment if it is divided with interest rate will be formula of__________?
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A. Due perpetuity

B. Present value of perpetuity

C. Future value of perpetuity

D. Deferred perpetuity

431. In calculation of internal rate of return, an assumption states that received cash flow from the project must __________?
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A. not be earned

B. be earned

C. be reinvested

D. not be reinvested

432. In capital budgeting, an internal rate of return of project is classified as its__________?
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A. Negative rate of return

B. Positive rate of return

C. External rate of return

D. Internal rate of return
433. When the stock market is rising it is called__________?
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A. Hawkish

B. Booming

C. Upward tendency

D. Bullish
434. A stock which is hybrid and works as a cross between debt and common stock is considered as_______________?
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A. Preferred stock

B. Common liabilities

C. Debt liabilities

D. Hybrid stock

435. Corporations that buy financial instruments with money accepted from savers are classified as_________________?
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A. Insurance funds

B. Debit funds

C. Credit funds

D. Mutual funds
436. A regulatory body which licenses brokers and oversees traders is classified as__________?
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A. International association of network dealers

B. International firm of auction system

C. National association of securities dealers

D. National firm of equity dealers

437. A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as____________?
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A. Amortized loan

B. Repaid payments

C. Appreciated loan

D. Depreciated loan

438. A high portfolio return is subtracted from low portfolio return to calculate_________?
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A. R portfolio

B. HML portfolio

C. Subtracted portfolio

439. A portfolio consists of all stocks in a market is classified as____________?
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A. Correlated portfolio

B. Market portfolio

C. Diversified portfolio

D. Return portfolio

440. Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as____________?
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A. Stock risk

B. Market risk

C. Diversifiable risk

D. Portfolio risk