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1 Finance MCQs

An annuity with an unlimited or extended life is called:

  • Extended life
  • Perpetuity
  • Deferred perpetuity
  • Due perpetuity
0 Comments
Correct Answer: B. Perpetuity

Explanation:

The correct option is this Perpetuity.


In Finance MCQs, a perpetuity is defined as ... Read More Details

2 Finance MCQs

If the future value of an investment is calculated twice per year, this method is known as:

  • Semiannual discounting
  • Annual discounting
  • Annual compounding
  • Semiannual compounding
0 Comments
Correct Answer: D. Semiannual compounding

Explanation:

The correct option is this Semiannual compounding.


In Finance MCQs, semiannual compounding is an ... Read More Details

3 Finance MCQs

In the cash flow statement, what is the effect of purchasing short-term securities or fixed assets?

  • Increased cash
  • Decreased cash
  • Increased liabilities
  • Increased equity
0 Comments
Correct Answer: B. Decreased cash

Explanation:

The correct option is this Decreased cash.


In Finance MCQs, understanding how different business ... Read More Details

4 Finance MCQs

The total depreciation charged on a long-term asset over its useful life is referred to as:

  • Accumulated depreciation
  • Depleted depreciation
  • Accumulated appreciation
  • Accumulated appreciation schedule
0 Comments
Correct Answer: A. Accumulated depreciation

Explanation:

The correct option is this Accumulated depreciation.


In Finance MCQs, accumulated depreciation is a ... Read More Details

5 Finance MCQs

When payments are made at the beginning of each period, such as at the beginning of the year, the series of payments is called?

  • Annuity due
  • Fixed payment series
  • Ordinary annuity
  • Deferred annuity
0 Comments
Correct Answer: A. Annuity due

Explanation:

The correct option is this Annuity due.


In Finance MCQs, understanding the concept of ... Read More Details

6 Finance MCQs

Values recorded based on market price are called what?

  • Market values
  • Book values
  • Appreciated values
  • Depreciated values
0 Comments
Correct Answer: A. Market values

Explanation:

The correct option is this Market values.


In Finance MCQs, understanding the difference between ... Read More Details

7 Finance MCQs

In bankruptcy, stock that ranks above common stock but below debt is called what?

  • Debt liabilities
  • Preferred stock
  • Hybrid stock
  • Common liabilities
0 Comments
Correct Answer: B. Preferred stock

Explanation:

The correct option is this Preferred stock.


In Finance MCQs, understanding capital structure and ... Read More Details

8 Finance MCQs

Accounts payable, accruals, and notes payable appear on the balance sheet under which category?

  • Accrued liabilities
  • Current liabilities
  • Accumulated liabilities
  • Non-current liabilities
0 Comments
Correct Answer: B. Current liabilities

Explanation:

The correct option is this Current liabilities.


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9 Finance MCQs

If net income is $2,250 and non-cash charges are $1,150, what is the net cash flow?

  • $1,100
  • $3,400
  • $2,200
  • $3,500
0 Comments
Correct Answer: D. $3,500

Explanation:

The correct option is this $3,500.


In Finance MCQs, understanding the concept of net ... Read More Details

10 Finance MCQs

In a market portfolio, stocks are represented graphically by which of the following?

  • Dashed line
  • Straight line
  • Market line
  • Risk line
0 Comments
Correct Answer: C. Market line

Explanation:

The correct option is this Market line.


In Finance MCQs, understanding how risk and ... Read More Details