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Finance Mcqs

Which of the following terms refers to the use of debt financing?

  • (A)  Operating Leverage
  • (B)  Financial Leverage
  • (C)  Manufacturing Leverage
  • (D)  None of the given options
Submitted By :Ali Uppal


Submitted By :Ali Uppal


Which of the following costs are reported on the income statement as the cost of goods sold?

  • (A)  Product cost
  • (B)  Period cost
  • (C)  Both product cost and period cost
  • (D)  Neither product cost nor period cost
Submitted By :Ali Uppal


Finance is vital for which of the following business activity (activities)?

  • (A)  Marketing Research
  • (B)  Product Pricing
  • (C)  Design of marketing and distribution channels
  • (D)  All of the given options
Submitted By :Ali Uppal


Which of the following refers to the cash flows that result from the firm‟s day-to-day activities of producing and selling?

  • (A)  Operating Cash Flows
  • (B)  Investing Cash Flows
  • (C)  Financing Cash Flows
  • (D)  All of the given options
Submitted By :Ali Uppal


Which of the following is the overall return the firm must earn on its existing assets to maintain the value of the stock?

  • (A)  IRR (Internal Rate of Return)
  • (B)  MIRR (Modified Internal Rate of Return)
  • (C)  WACC (Weighted Average Cost of Capital)
  • (D)  AAR (Average Accounting Return)
Submitted By :Ali Uppal


A series of constant cash flows that occur at the end of each period for some fixed number of periods is ____________ .

  • (A)  an ordinary annuity
  • (B)  annuity due
  • (C)  multiple cash flows
  • (D)  perpetuity
Submitted By :Ali Uppal


The DuPont Identity tells us that Return on Equity is affected by:

  • (A)  The DuPont Identity tells us that Return on Equity is affected by:
  • (B)  asset use efficiency (as measured by total assets turnover)
  • (C)  financial Leverage (as measured by equity multiplier)
  • (D)  all of the given options (a, b and c)
Submitted By :Ali Uppal


A standardized financial statement presenting all items of the statement as a percentage of total is:

  • (A)  a common-size statement
  • (B)  an income statemen
  • (C)  a cash flow statement
  • (D)  a balance sheet
Submitted By :Ali Uppal


Which of the following is the process of planning and managing a firm‟s long-term investments?

  • (A)  Capital Structuring
  • (B)  Capital Rationing
  • (C)  Capital Budgeting
  • (D)  Working Capital Management
Submitted By :Ali Uppal