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Business & Finance MCQs

Prepare for competitive exams with our comprehensive Business & Finance MCQs, designed for students of commerce and candidates appearing in recruitment tests. These multiple-choice questions cover financial management, accounting, auditing, business law, corporate governance, investment analysis, banking, cost of capital, stock markets, marketing, human resource management, and business communication. Highly beneficial for aspirants of PPSC, FPSC, CSS, NTS, SPSC, BPSC, KPSC, ETEA, AJKPSC, as well as banking sector exams, commerce lecturer tests, and business-related university assessments (B.Com, M.Com, MBA, ACCA, CA).

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1 Finance MCQs

The annual estimated cost of assets that are used up each year is called:

  • Depreciation and amortization
  • Net sales
  • Net profit
  • Net income
0 Comments
Correct Answer: A. Depreciation and amortization

Explanation:

The correct option is this Depreciation and Amortization.


In Finance MCQs, depreciation and amortization ... Read More Details

2 Finance MCQs

In calculating net cash flow, depreciation and amortization are treated as:

  • Current liabilities
  • Income expenses
  • Non-cash revenues
  • Non-cash charges
0 Comments
Correct Answer: D. Non-cash charges

Explanation:

The correct option is this Non-cash charges.


In Finance MCQs, understanding non-cash charges is ... Read More Details

3 Finance MCQs

The process of determining the future value of a sum of money from its present value is called:

  • Compounding
  • Discounting
  • Money value
  • Stock value
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Correct Answer: A. Compounding

Explanation:

The correct option is this Compounding.


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4 Finance MCQs

On a balance sheet, the sum of retained earnings and common stock is classified as:

  • Preferred equity
  • Due equity
  • Common perpetuity
  • Common equity
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Correct Answer: D. Common equity

Explanation:

The correct option is this Common equity.


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5 Finance MCQs

The portion of an asset’s purchase cost that is systematically allocated over its useful life is called:

  • Appreciation
  • Depreciation
  • Appreciated assets
  • Appreciated liabilities
0 Comments
Correct Answer: B. Depreciation

Explanation:

The correct option is this Depreciation.


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6 Finance MCQs

Securities that have less predictable prices and longer maturity periods are classified as:

  • Cash equivalents
  • Long-term investments
  • Inventories
  • Short-term investments
0 Comments
Correct Answer: B. Long-term investments

Explanation:

The correct option is this Long-term investments.


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7 Finance MCQs

The information that investors use to estimate a company’s future earnings is found in:

  • Five-year report
  • Annual report
  • Stock report
  • Exchange report
0 Comments
Correct Answer: B. Annual report

Explanation:

The correct option is this Financial institutions.


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8 Finance MCQs

The rate of return that an investment generates for its investor is called:

  • Investment return rate
  • Internal rate of return (IRR)
  • International rate of return
  • Intrinsic rate of return
0 Comments
Correct Answer: B. Internal rate of return (IRR)

Explanation:

The correct option is this Internal rate of return (IRR).


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9 Finance MCQs

In calculating net cash flow, deferred tax payments are treated as:

  • Non-cash revenues
  • Non-cash charges
  • Current liabilities
  • Income expense
0 Comments
Correct Answer: B. Non-cash charges

Explanation:

The correct option is this Non-cash charges.


In Finance MCQs, understanding non-cash charges is ... Read More Details

10 Finance MCQs

Assets such as land, buildings, and factory equipment are classified as:

  • Tangible assets
  • Non-tangible assets
  • Financial assets
  • Financial liabilities
0 Comments
Correct Answer: A. Tangible assets

Explanation:

The correct option is this Tangible assets.


In Finance MCQs, understanding tangible assets is ... Read More Details

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