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Finance Mcqs

The principal amount of a bond at issue is called____________?

  • (A)  Par value
  • (B)  Coupon value
  • (C)  Present value of an annuity
  • (D)  Present value of a lump sum
Submitted By :Ali Uppal


The difference between current assets and current liabilities is known as____________?

  • (A)  Surplus Asset
  • (B)  Short-term Ratio
  • (C)  Working Capital
  • (D)  Current Ratio
Submitted By :Ali Uppal


Which of the following equation is known as Cash Flow (CF) identity?

  • (A)  CF from Assets = CF to Creditors – CF to Stockholder
  • (B)  CF from Assets = CF to Stockholders – CF to Creditors
  • (C)  CF to Stockholders = CF to Creditors + CF from Assets
  • (D)  CF from Assets = CF to Creditors + CF to Stockholder
Submitted By :Ali Uppal


A company having a current ratio of 1 will have __________ net working capital.

  • (A)  Positive
  • (B)  Negative
  • (C)  zero
  • (D)  None of the given options
Submitted By :Ali Uppal


Submitted By :Ali Uppal


Which of the following is known as the group of assets such as stocks and bonds held by an investor ?

  • (A)  Stock Bundle
  • (B)  Portfolio
  • (C)  Capital Structure
  • (D)  . None of the given options
Submitted By :Ali Uppal


Quick Ratio is also known as_________?

  • (A)  Current Ratio
  • (B)  Acid-test Ratio
  • (C)  Cash Ratio
  • (D)  None of the given options
Submitted By :Ali Uppal


Balance Sheet is based upon which of the following formula?

  • (A)  Assets = Liabilities – Stockholder’s equity
  • (B)  Assets + Liabilities = Stockholder’s equity
  • (C)  Assets + Stockholder’s equity = Liabilities
  • (D)  Assets = Liabilities + Stockholder’s equity
Submitted By :Ali Uppal


Which of the following ratios are intended to address the firm’s financial leverage?

  • (A)  Liquidity Ratios
  • (B)  Long-term Solvency Ratios
  • (C)  Asset Management Ratios
  • (D)  Profitability Ratios
Submitted By :Ali Uppal


Which of the following form of business organization is least regulated?

  • (A)  Sole-proprietorship
  • (B)  General Partnership
  • (C)  Limited Partnership
  • (D)  Corporation
Submitted By :Ali Uppal