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1 Finance MCQs

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

  • Rs. 300,000
  • Rs. 500,000
  • Rs. 800,000
  • Rs. 1,100,000
0 Comments
Correct Answer: C. Rs. 800,000

Explanation:

The correct option is this Rs. 800,000.


In Finance MCQs, calculating a ... Read More Details

2 Finance MCQs

Which of the following financial measures shows how much profit a company generates with the money invested by its shareholders?

  • Profit Margin
  • Return on Assets
  • Return on Equity
  • Debt-Equity Ratio
0 Comments
Correct Answer: C. Return on Equity

Explanation:

The correct option is this Return on Equity (ROE).


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3 Finance MCQs

If you have Rs. 850 and plan to save it for 4 years at 10% annual interest, what will be the future value of your investment?

  • Rs. 1,000
  • Rs. 1,244
  • Rs. 1,331
  • Rs. 1,464
0 Comments
Correct Answer: D. Rs. 1,464

Explanation:

The correct option is this Rs. 1,464.


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4 Finance MCQs

In international business, which of the following factors must be considered when making financial and operational decisions?

  • Role of foreign exchange
  • Balance of payments
  • Attitude of Governments
  • All of the given options
0 Comments
Correct Answer: D. All of the given options

Explanation:

The correct option is this All of the given options.


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5 Finance MCQs

Who among the following uses accounting information most broadly for decision-making and financial analysis?

  • Accountants
  • Financial Analysts
  • Auditors
  • Marketers
0 Comments
Correct Answer: B. Financial Analysts

Explanation:

The correct option is this Financial Analysts.


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6 Finance MCQs

The formula used to calculate the present value (PV) of a single future cash flow is which of the following?

  • CF₁ / (1 + r)ⁿ
  • C₂ / (1 + r)
  • C₀ + C (1 + r)ⁿ
  • None of these
0 Comments
Correct Answer: A. CF₁ / (1 + r)ⁿ

Explanation:

The correct option is this CF₁ / (1 + r)ⁿ.


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7 Finance MCQs

An asset in accounting and finance is classified as which of the following?

  • Sources of funds
  • Use of funds
  • Inflow of funds
  • None of these
0 Comments
Correct Answer: B. Use of funds

Explanation:

The correct option is this Use of funds.


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8 Finance MCQs

If a company revalues its fixed assets, how will the current ratio be affected?

  • Improve if assets are revalued upward
  • Remain unaffected
  • Improve if assets are revalued downward
  • Change only if liabilities remain constant
0 Comments
Correct Answer: B. Remain unaffected

Explanation:

The correct option is this Remain unaffected.


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9 Finance MCQs

The standard error for a sample is calculated as the sample standard deviation (SD) divided by which of the following?

  • √(number of items) ÷ mean
  • SD ÷ number of items
  • SD ÷ square root of the number of items in the sample
  • Cannot calculate due to insufficient info
0 Comments
Correct Answer: C. SD ÷ square root of the number of items in the sample

Explanation:

The correct option is this SD divided by the square root of the ... Read More Details

10 Finance MCQs

The Rule of 72, used as a shortcut method to estimate the doubling time of an investment, is calculated using which formula?

  • 72 divided by the annual interest rate
  • Annual interest rate divided by 72
  • 72 ÷ (annual interest rate × discount factor)
  • None of these
0 Comments
Correct Answer: A. 72 divided by the annual interest rate

Explanation:

The correct option is this 72 divided by the annual interest rate Read More Details

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