Finance Mcqs Practice Test

Question 1

Net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be________?

Accepted Answer

B. 11.40%

Question 2

A technique uses in comparative analysis of financial statement is____________?

Accepted Answer

C. Common size analysis

Question 3

The Capital Asset Pricing Model calculate expected:

Accepted Answer

B. Risk and Return

Question 4

Full Form of BCCI ?

Accepted Answer

C. Bank of Credit and Commerce International

Question 5

Rule of 72 as a short cut method is explained by the formula:

Accepted Answer

A. 72 divided by the annual interest rate

Question 6

If we were studying a sample of 100 students and their examination performance and if the standard deviation of the list of results was say 14, then we could calculated the standard error by ___________?

Accepted Answer

D. We cannot calculate standard error on account of inadequacy of information

Question 7

If a company revaluates its fixed assets, the current ratio of the company will:

Accepted Answer

B. Remain unaffected

Question 8

An Asset is __________?

Accepted Answer

B. Use of funds

Question 9

The effect of purchasing power or inflation on present value is important because _________?

Accepted Answer

B. It reduces the real value of cash flows received in the future

Question 10

The formula to calculate the present value of a single cash flow is given by:

Accepted Answer

A. CF1 / (1+r)n

Question 11

Choose from the following a symptom which is not relating to “Over Trading”?

Accepted Answer

B. Low inventory turnover ratio

Question 12

The Yield to Maturity of a bond is the same as_____________?

Accepted Answer

B. The bonds internal rate of return

Question 13

Who of the following make a broader use of accounting information?

Accepted Answer

B. Financial Analysts

Question 14

Which of the following refers to the difference between the sale price and cost of inventory?

Accepted Answer

C. Markup

Question 15

In case of international business which of the given factor(s) must be considered?

Accepted Answer

D. All of the given options

Question 16

If you have Rs. 850 and you plan to save it for 4 years with an interest rate of 10%, what will be the future value of your savings?

Accepted Answer

B. Rs. 1,244

Question 17

Which of the following measure reveals how much profit a company generates with the money shareholders have invested?

Accepted Answer

C. Return on Equity

Question 18

A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?

Accepted Answer

C. Rs. 800,000

Question 19

Which of the following statement is TRUE regarding debt?

Accepted Answer

B. Unpaid debt can result in bankruptcy or financial failure.

Question 20

If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually?

Accepted Answer

D. Rs. 6,802