Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
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 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
_______________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
The use of Personal borrowing to alter the degree of financial leverage is called__________?
A: Homemade leverage
B: Financial leverage
C: Operating leverage
D: None of the given option
Homemade leverage
_________ refers to the most valuable alternative that is given up if a particular investment is undertaken?
A: Sunk cost
B: Opportunity cost
C: Financing cost
D: All of the given options
Opportunity cost