Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
Mr. Y and Mr. Z are planning to share their capital to run a business. They are going to employ which of the following type of business?
A: Sole-proprietorship
B: Partnership
C: Corporation
D: None of the given options
Partnership
You just won a prize, you can either receive Rs. 1000 today or Rs. 1,050 in one year. Which option do you prefer and why if you can earn 5 percent on your money?
A: Rs. 1,000 because it has the higher future value
B: Rs. 1,000 because you receive it sooner
C: Rs. 1,050 because it is more money
D: Either because both options are of equal value
Either because both options are of equal value
Which of the following ratios are particularly interesting to shortterm creditors?
A: Liquidity Ratios
B: Long-term Solvency Ratios
C: Profitability Ratios
D: Market Value Ratios
Liquidity Ratios
In which form of Business, owners have limited liability?
A: sole proprietorship
B: partnership
C: joint stock company
D: none of the above
joint stock company
Balance Sheet is based upon which of the following formula?
A: Assets = Liabilities “ Stockholders equity
B: Assets + Liabilities = Stockholders equity
C: Assets + Stockholders equity = Liabilities
D: Assets = Liabilities + Stockholders equity
Assets = Liabilities + Stockholder’s equity
Quick Ratio is also known as_________?
A: Current Ratio
B: Acid-test Ratio
C: Cash Ratio
D: None of the given options
Acid-test Ratio
Which of the following is a special case of annuity, where the stream of cash flows continues forever?
A: Ordinary Annuity
B: Special Annuity
C: Annuity Due
D: Perpetuity
Perpetuity
Profitability index (PI) rule is to take an investment, if the index exceeds___________?
A: -1
C: 1
D: 2
1
Which of the following is the cheapest source of financing available to a firm?
A: Bank loan
B: Commercial papers
C: Trade credit
D: None of the given options.
Trade credit
_______________refers to the extent to which fixed-income securities (debt and preferred stock) are used in a firms capital structure?
A: Financial risk
B: Portfolio risk
C: Operating risk
D: Market risk
Financial risk