Finance Mcqs Practice Test

Question 1

Land, buildings, and factory fixed equipment are classified as____________?

Accepted Answer

A. Tangible asset

Question 2

Non cash revenues and non cash charges if it subtracted from net income is equal to___________?

Accepted Answer

C. Net cash flow

Question 3

Method of inventory recording gives lower cost of goods sold in income statement is classified as______________?

Accepted Answer

D. First in first out

Question 4

In calculation of net cash flow, deferred tax payments are classified as______________?

Accepted Answer

B. Non-cash charges

Question 5

Rate of return that an investment provides its investor is classified as__________?

Accepted Answer

B. Internal rate of return

Question 6

An information uses by investors for expecting future earnings is all recorded in__________?

Accepted Answer

B. Annual report

Question 7

Securities with less predictable prices and have longer maturity time is considered as_______________?

Accepted Answer

D. Short-term investments

Question 8

Purchase cost of assets over its useful life is classified as_________?

Accepted Answer

B. Depreciation

Question 9

In balance sheet, sum of retained earnings and common stock are considered as_____________?

Accepted Answer

D. Common equity

Question 10

Process of calculating future value of money from present value is classified as____________?

Accepted Answer

A. Compounding

Question 11

An income available for shareholders after deducting expenses and taxes from revenues is classified as______________?

Accepted Answer

A. Net income

Question 12

Number of shares outstanding if it is divided by net income for using to calculate___________?

Accepted Answer

A. Earning per share

Question 13

Stockholders that do not get benefits even if company’s earnings grow are classified as_____________?

Accepted Answer

A. Preferred stockholders

Question 14

In calculation of net cash flow, depreciation and amortization are treated as________?

Accepted Answer

D. Non-cash charges

Question 15

An annual estimated cost of assets uses up every year is included__________?

Accepted Answer

A. Depreciation and amortization

Question 16

In time value of money, nominal rate is_______________?

Accepted Answer

A. Not shown on timeline

Question 17

Proceeds of company shares of sold stock is recorded in___________?

Accepted Answer

B. Common stock account

Question 18

Standard deviation is 18% and coefficient of variation is 1.5% an expected rate of return will be_____________?

Accepted Answer

B. 12%

Question 19

In an individual stock, relevant risk is classified as___________?

Accepted Answer

B. Beta coefficient

Question 20

Weighted average of probabilities is classified as____________?

Accepted Answer

B. Expected rate of return