Finance Mcqs
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Which of the following is measured by profit margin?
A. Operating efficiency B. Asset use efficiency C. Financial policy D. Dividend policy
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Which of the following strategy belongs to restrictive policy regarding size of investments in current assets?
A. To maintain a high ratio of current assets to sales B. To maintain a low ratio of current assets to sales C. To less short-term debt and more long-term debt D. To more short-term debt and less long-term debt
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Which of the following statement is CORRECT regarding compound interest?
A. It is the most basic form of calculating interest. B. It earns profit not only on principal but also on interest. C. It is calculated by multiplying principal by rate multiplied by time. D. It does not take into…
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Which of the following equation is known as Cash Flow (CF) identity?
A. CF from Assets = CF to Creditors – CF to Stockholder B. CF from Assets = CF to Stockholders – CF to Creditors C. CF to Stockholders = CF to Creditors + CF from Assets D. CF from Assets…
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The Board of Directors sets company-wide policy and advices the CEO and other senior executies, who manage the company’s:
A. Managerial activities B. Year-to-Year activities C. Day-to-Day activities D. Financial activities
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The system by which companies are managed and controlled is known as:
A. Management System B. Strategic System C. Corporate Governance D. Internal System
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The market price of a firm’s stock represents the focal judgment of all market participants as to the value of the:
A. Particular market B. Particular firm C. Particular creditor D. Particular debtor
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All the constituencies with a stake in the fortunes of the company are termed as:
A. Stakeholders B. Directors C. Chief executives D. Subordinates
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Having some overall goal in mind, financial management is concerned with:
A. Acquisition of assets B. Financing of assets C. Management of assets D. All of them
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A major facet of financial management involves providing the financing necessary to support:
A. Liabilities B. Debts C. Loans D. Assets
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Which of the following relationships holds TRUE if a bond sells at a discount?
A. Bond Price < Par Value and YTM > coupon rate B. Bond Price > Par Value and YTM > coupon rate C. Bond Price > Par Value and YTM < coupon rate D. Bond Price < Par Value and…
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Financial policy is evaluated by which of the following?
A. Profit Margin B. Total Assets Turnover C. Debt-equity ratio D. None of the given options
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A company having a current ratio of 1 will have __________ net working capital.
A. Positive B. Negative C. zero D. None of the given options
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___________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.
A. Financial management B. Profit maximization C. Agency theory D. Social responsibility
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Profit maximization is the maximizing a firm’s Earning:
A. Before Tax B. After Tax C. Both A and B D. None of Them
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A portion of profits, which a company retains itself for further expansion, is known as:
3A. Dividends B. Retained Earnings C. Capital Gain D. None of the given options
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The DuPont Identity tells us that Return on Equity is affected by:
A. The DuPont Identity tells us that Return on Equity is affected by: B. asset use efficiency (as measured by total assets turnover) C. financial Leverage (as measured by equity multiplier) D. all of the given options (a, b and…
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Which of the following costs are reported on the income statement as the cost of goods sold?
A. Product cost B. Period cost C. Both product cost and period cost D. Neither product cost nor period cost
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Finance is vital for which of the following business activity (activities)?
A. Marketing Research B. Product Pricing C. Design of marketing and distribution channels D. All of the given options
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Corporate governance encompasses the relationship among a company’s:
A. Shareholders and board of director B. Board of directors and senior management C. Shareholders and senior management D. Shareholders, board of directors and senior management
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The investment decision is the most important of the firm’s three major decisions, when it comes to:
A. Value creation B. Value addition C. Value proposition D. Value deletion
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Maximizing Shareholder wealth:
A. Relieves the firms responsibility towards society B. Does not relieve the firm’s responsibility towards society C. Partially relives the firm’s responsibility towards society D. None of Them
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The difference between current assets and current liabilities is known as____________?
A. Surplus Asset B. Short-term Ratio C. Working Capital D. Current Ratio
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Which of the following is known as the group of assets such as stocks and bonds held by an investor ?
A) Stock Bundle B) Portfolio C) Capital Structure D) None of the given options
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When real rate is high, all the interest rates tend to be ___________?
A) Higher B) Lower C) Constant D) None of the given options
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Product costs include which of the following?
A. Selling expenses B. General expenses C. Manufacturing overhead D. Administrative expenses
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A series of constant cash flows that occur at the end of each period for some fixed number of periods is ____________ .
A. an ordinary annuity B. annuity due C. multiple cash flows D. perpetuity
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Stakeholders include:
A. Stakeholders B. Creditors and customs C. Employees and suppliers D. All of Them
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Quick Ratio is also known as_______________?
A. Current Ratio B. Acid-test Ratio C. Cash Ratio D. Solvency Ratio
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