Finance Mcqs

The principal amount of a bond at issue is called____________?

(A) Par value

(B) Coupon value

(C) Present value of an annuity

(D) Present value of a lump sum

Submitted By: Ali Uppal


The difference between current assets and current liabilities is known as____________?

(A) Surplus Asset

(B) Short-term Ratio

(C) Working Capital

(D) Current Ratio

Submitted By: Ali Uppal


Which of the following equation is known as Cash Flow (CF) identity?

(A) CF from Assets = CF to Creditors – CF to Stockholder

(B) CF from Assets = CF to Stockholders – CF to Creditors

(C) CF to Stockholders = CF to Creditors + CF from Assets

(D) CF from Assets = CF to Creditors + CF to Stockholder

Submitted By: Ali Uppal


A company having a current ratio of 1 will have __________ net working capital.

(A) Positive

(B) Negative

(C) zero

(D) None of the given options

Submitted By: Ali Uppal


Submitted By: Ali Uppal


Which of the following is known as the group of assets such as stocks and bonds held by an investor ?

(A) Stock Bundle

(B) Portfolio

(C) Capital Structure

(D) . None of the given options

Submitted By: Ali Uppal


Quick Ratio is also known as_________?

(A) Current Ratio

(B) Acid-test Ratio

(C) Cash Ratio

(D) None of the given options

Submitted By: Ali Uppal


Balance Sheet is based upon which of the following formula?

(A) Assets = Liabilities – Stockholder’s equity

(B) Assets + Liabilities = Stockholder’s equity

(C) Assets + Stockholder’s equity = Liabilities

(D) Assets = Liabilities + Stockholder’s equity

Submitted By: Ali Uppal


Which of the following ratios are intended to address the firm’s financial leverage?

(A) Liquidity Ratios

(B) Long-term Solvency Ratios

(C) Asset Management Ratios

(D) Profitability Ratios

Submitted By: Ali Uppal


Which of the following form of business organization is least regulated?

(A) Sole-proprietorship

(B) General Partnership

(C) Limited Partnership

(D) Corporation

Submitted By: Ali Uppal