Basic Finance MCQs

A techniques uses to identify financial statements trends are included:

A. Common size analysis
B. Percent change analysis
C. Returning ratios analysis
D. Both A and B

Price per ratio is divided by cash flow per share ratio which is used for calculating:

A. Dividend to stock ratio
B. Sales to growth ratio
C. Cash flow to price ratio
D. Price to cash flow ratio

A technique uses in comparative analysis of financial statement is:

A. Graphical analysis
B. Preference analysis
C. Common size analysis
D. Returning analysis

The Capital Asset Pricing Model calculate expected:

A. Risk
B. Risk and Return
C. Return
D. None of the above

If a company revaluates its fixed assets, the current ratio of the company will:

A. Improve if assets are revalued upward
B. Remain unaffected
C. Improve if assets are revalued downwards
D. Undergo change only

An Asset is:

A. Sources of funds
B. Use of funds
C. Inflow of funds
D. None of these

The formula to calculate the present value of a single cash flow is given by:

A. CF1 / (1+r)n
B. C2 / (1+r)
C. C0 + C (1+r)n
D. None of these

Choose from the following a symptom which is not relating to “Over Trading”:

A. Cash shortage
B. Low inventory turnover ratio
C. Low current ratio
D. High inventory turnover ratio

The Yield to Maturity of a bond is the same as:

A. The present value of the bond
B. The bonds internal rate of return
C. The future value of the bond
D. None of these

Who of the following make a broader use of accounting information:

A. Accountants
B. Financial Analysts
C. Auditors
D. Marketers

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