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Here is the MCQs guide for the topic of Finance. you will find various types of questions along with there answers in this
Q. Which of the following measure reveals how much profit a company generates with the money shareholders have invested?
A.
Profit Margin
B.
Return on Assets
C.
Return on Equity
D.
Debt-Equity Ratio


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Q. The most important item that can be extracted from financial statements is the actual ________ of the firm.
A.
Net Working Capital
B.
Cash Flow
C.
Net Present Value
D.
None


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Q. Which of the following statement is considered as the accountant’s snapshot of firm’s accounting value as of a particular date?
A.
Income Statement
B.
Balance Sheet
C.
Cash Flow Statement
D.
None


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Q. When the market’s required rate of return for a particular bond is much less than its coupon rate, the bond is selling at:
A.
Premium
B.
Discount
C.
Par
D.
Cannot be determined without more information


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Q. Standard Corporation sold fully depreciated equipment for Rs.5,000. This transaction will be reported on the cash flow statement as a(n):
A.
Operating activity
B.
Investing activity
C.
Financing activity
D.
None


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Q. If a firm uses cash to purchase inventory, its quick ratio will?
A.
Increase
B.
Decrease
C.
Remain unaffected
D.
Become zero


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Q. Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates?
A.
Fluctuations Risk
B.
Interest Rate Risk
C.
Real-Time Risk
D.
Inflation Risk


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Q. How many years will it take to pay off a Rs. 11,000 loan with a Rs. 1,241.08 annual payment and a 5% interest rate?
A.
6 years
B.
12 years
C.
24 years
D.
48 years


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Q. Business Finance addresses which of the following?
A.
Capital budgeting
B.
Capital structure
C.
Working capital management
D.
All


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Q. A company having a current ratio of 1 will have ________ net working capital.
A.
Positive
B.
Negative
C.
zero
D.
None


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