Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?
A: 12%
B: 25%
C: 40%
D: 60%
40%
Which of the following ratios is NOT from the set of Asset Management Ratios?
A: Inventory Turnover Ratio
B: Receivable Turnover
C: Capital Intensity Ratio
D: Return on Assets
Capital Intensity Ratio
Which of the following statement about bond ratings is TRUE?
A: Bond ratings are typically paid for by a companys bondholders.
B: Bond ratings are based solely on information acquired from sources other than the bond issuer.
C: Bond ratings represent an independent assessment of the credit-worthiness of bonds.
D: None of the given options
Bond ratings represent an independent assessment of the credit-worthiness of bonds.
If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually?
A: Rs. 5,400
B: Rs. 5,900
C: Rs. 6,600
D: Rs. 6,802
Rs. 6,802
Which of the following is measured by retention ratio?
A: Operating efficiency
B: Asset use efficiency
C: Financial policy
D: Dividend policy
Dividend policy
How many years will it take to pay off a Rs. 11,000 loan with a Rs. 1,241.08 annual payment and a 5% interest rate?
A: 6 years
B: 12 years
C: 24 years
D: 48 years
12 years
Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates?
A: Fluctuations Risk
B: Interest Rate Risk
C: Real-Time Risk
D: Inflation Risk
Interest Rate Risk
Which of the following set of ratios relates the market price of the firms common stock to selected financial statement items?
A: Liquidity Ratios
B: Leverage Ratios
C: Profitability Ratios
D: Market Value Ratios
Market Value Ratios
If a firm uses cash to purchase inventory, its quick ratio will?
A: Increase
B: Decrease
C: Remain unaffected
D: Become zero
Decrease
Standard Corporation sold fully depreciated equipment for Rs.5,000. This transaction will be reported on the cash flow statement as a(n):
A: Operating activity
B: Investing activity
C: Financing activity
D: None of the given options
Investing activity