finance MCQs – Page 24

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 Review each marked answer and report any item that may be outdated or unclear.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
462. The price per share divided by earnings per share is the formula for calculating ___________?
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A. earnings price ratio

B. pricing ratio

C. price earnings ratio

D. earnings ratio

463. If two independent projects having hurdle rate then both projects should ___________?
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A. be accepted

B. not be accepted

C. have capital acceptance

D. have return rate acceptance

465. Non cash revenues and non cash charges if it subtracted from net income is equal to___________?
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A. Financing cash flow

B. Retained cash flow

C. Free cash flow

D. Net cash flow
466. The price earnings ratio and price by cash flow ratio are classified as __________?
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A. equity ratios

B. marginal ratios

C. market value ratios

D. return ratios

467. A technique that is used in comparative analysis of financial statement is __________?
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A. returning analysis

B. graphical analysis

C. common size analysis

D. preference analysis

468. Intangible assets such as copyrights, trademarks and patents are applicable for____________?
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A. Perishable assets

B. Stock amortization

C. Depreciation

D. Amortization
469. In capital budgeting, the positive net present value results in _________?
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A. zero economic value added

B. negative economic value added

C. positive economic value added

D. percent economic value added

470. Method of inventory recording gives lower cost of goods sold in income statement is classified as______________?
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A. Last in first out

B. First out receivable

C. First in first out

D. Last out receivable

471. Stockholders that do not get benefits even if companys earnings grow are classified as_____________?
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A. Common stockholders

B. Hybrid stockholders

C. Debt holders

D. Preferred stockholders
472. Beta coefficient is used to measure market risk which is an index of__________?
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A. Market risk volatility

B. Coefficient risk volatility

C. Stock market volatility

D. Portfolio market portfolio

473. Stocks in market portfolio are graphically represented with_____________?
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A. Straight line

B. Dashed line

C. Risk line

D. Market line

477. In calculation of net cash flow, deferred tax payments are classified as______________?
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A. Current liabilities

B. Non-cash revenues

C. Income expense

D. Non-cash charges