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 item provides the important function of shielding part of income from taxes?
A: Inventory
B: Supplies
C: Machinery
D: Depreciation
Depreciation
When the markets required rate of return for a particular bond is much less than its coupon rate, the bond is selling at:
A: Premium
B: Discount
C: Par
D: Cannot be determined without more information
Premium
The process of determining the present value of a payment or a stream of payments that is to be received in the future is known as:
A: Discounting
B: Compounding
C: Factorization
D: None of the given options
Discounting
You need Rs. 10,000 to buy a new television. If you have Rs. 6,000 to invest at 5 percent compounded annually, how long will you have to wait to buy the television?
A: 8.42 years
B: 10.51 years
C: 15.75 years
D: 18.78 years
10.51 years
In which of the following type of annuity, cash flows occur at the beginning of each period?
A: Ordinary annuity
B: Annuity due
C: Perpetuity
D: None of the given options
Annuity due
Which of the given area is NOT addressed by Business Finance?
A: Financing
B: Investing
C: Managing day today expenses
D: None of the given options
None of the given options