info@jobexams.pk
Job Exams Hero

Finance MCQs

Boost your knowledge of business and financial concepts with our comprehensive Finance MCQs, designed for students, job seekers, and professionals preparing for competitive exams. These multiple-choice questions cover financial management, accounting principles, investment analysis, corporate finance, working capital, ratio analysis, cost of capital, stock markets, risk management, capital budgeting, and time value of money. Highly valuable for candidates appearing in PPSC, FPSC, CSS, NTS, SPSC, BPSC, KPSC, ETEA, AJKPSC, as well as banking exams, finance officer posts, and commerce-related university tests (B.Com, M.Com, MBA, ACCA).

Browse Categories
Quick Results 0 found

Question Coming Soon!

"" isn't in our database yet, but we're adding new questions daily.

1 Finance MCQs

The Modified Internal Rate of Return (MIRR) exceeds the cost of capital if the Net Present Value (NPV) is ____________?

  • Positive
  • Negative
  • Zero
  • One
0 Comments
Correct Answer: A. Positive

Explanation:

The Modified Internal Rate of Return (MIRR) is a metric that assumes reinvestment ... Read More Details

2 Finance MCQs

The payback period in which expected cash flows are discounted using the project’s cost of capital is called ____________?

  • Discounted payback period
  • Discounted rate of return
  • Discounted cash flows
  • Discounted cash flows
0 Comments
Correct Answer: A. Discounted payback period

Explanation:

The discounted payback period calculates how long it takes to recover ... Read More Details

3 Finance MCQs

In alternative investments, a constant cash flow stream equal to the initial cash flow stream is calculated using ____________?

  • Greater annual annuity method
  • Equivalent annual annuity
  • Lesser annual annuity method
  • Zero annual annuity method
0 Comments
Correct Answer: B. Equivalent annual annuity

Explanation:

The Equivalent Annual Annuity (EAA) method converts the Net Present Value (NPV) of ... Read More Details

4 Finance MCQs

In capital budgeting, a negative Net Present Value (NPV) results in ____________?

  • Zero economic value added
  • Percent economic value added
  • Negative economic value added
  • Positive economic value added
0 Comments
Correct Answer: C. Negative economic value added

Explanation:

In capital budgeting, a negative NPV means the project’s present value of cash inflows is ... Read More Details

5 Finance MCQs

The number of years forecasted to recover the original investment is called ____________?

  • Payback period
  • Forecasted period
  • Original period
  • Investment period
0 Comments
Correct Answer: A. Payback period

Explanation:

The payback period is the time it takes for a project ... Read More Details

6 Finance MCQs

A discount rate where the present value of terminal value equals the project cost present value is called ____________?

  • Negative internal rate of return
  • Modified internal rate of return
  • Existed internal rate of return
  • Relative rate of return
0 Comments
Correct Answer: B. Modified internal rate of return

Explanation:

The Modified Internal Rate of Return (MIRR) is the discount rate that makes ... Read More Details

7 Finance MCQs

An uncovered cost at the start of the year is $300, full cash flow during recovery year is $650, and prior years to full recovery is 4. The payback period is ____________?

  • 3.46 years
  • 2.46 years
  • 5.46 years
  • 4.46 years
0 Comments
Correct Answer: D. 4.46 years

Explanation:

The formula for Payback Period is:


Payback Period=Prior Years to Recovery+Uncovered Cost at Start of YearCash Flow During Recovery Year\text{Payback Period} = \text{Prior Years ... Read More Details

8 Finance MCQs

The present value of future cash flows is $2,000, and the initial cost is $1,100. The Profitability Index (PI) is ____________?

  • 0.55
  • 1.82
  • 0.55
  • 0.0182
0 Comments
Correct Answer: B. 1.82

Explanation:

The formula for Profitability Index (PI) is:


PI=Present Value of Future Cash FlowsInitial InvestmentPI = \dfrac{\text{Present Value ... Read More Details

9 Finance MCQs

The Profitability Index (PI) in capital budgeting is used to ____________?

  • Negative projects
  • Relative projects
  • Evaluate projects
  • Earned projects
0 Comments
Correct Answer: D. Earned projects

Explanation:

The Profitability Index (PI) is a capital budgeting technique used to evaluate and compare investment ... Read More Details

10 Finance MCQs

In calculating the Internal Rate of Return (IRR), it is assumed that the project’s cash flows must ____________?

  • Be reinvested
  • Not be reinvested
  • Be earned
  • Not be earned
0 Comments
Correct Answer: A. Be reinvested

Explanation:

When calculating IRR, it is assumed that the project’s cash flows are reinvested at the ... Read More Details

Question Categories
General Knowledge Category MCQ'S
Computer Category MCQ'S
Chemistry Category MCQ'S
Pak Departmental Laws & Rules MCQs