Finance Mcqs

A. Risk
B. Risk and Return
C. Return
D. None of the above

Rule of 72 as a short cut method is explained by the formula:

A. 72 divided by the annual interest rate
B. Annual interest rate dividend by 72
C. 72 divided by (annual interest rate multiplied by discount factor)
D. None of these

If we were studying a sample of 100 students and their examination performance and if the standard deviation of the list of results was say 14, then we could calculated the standard error by ___________?

A. Dividing the square root of the number of items in the sample by the mean
B. Dividing standard deviation by number of items in the sample
C. Dividing the standard deviation by the square root of the number of items in the sample
D. We cannot calculate standard error on account of inadequacy of information

If a company revaluates its fixed assets, the current ratio of the company will:

A. Improve if assets are revalued upward
B. Remain unaffected
C. Improve if assets are revalued downwards
D. Undergo change only if liabilities are remaining constant

An Asset is __________?

A. Sources of funds
B. Use of funds
C. Inflow of funds
D. None of these

The effect of purchasing power or inflation on present value is important because _________?

A. It increases the real value of cash flows received in the future
B. It reduces the real value of cash flows received in the future
C. It has no effect on real value of cash flow received in the future
D. None of these

The formula to calculate the present value of a single cash flow is given by:

A. CF1 / (1+r)n
B. C2 / (1+r)
C. C0 + C (1+r)n
D. None of these

Choose from the following a symptom which is not relating to “Over Trading”?

A. Cash shortage
B. Low inventory turnover ratio
C. Low current ratio
D. High inventory turnover ratiO

The Yield to Maturity of a bond is the same as_____________?

A. The present value of the bond
B. The bonds internal rate of return
C. The future value of the bond
D. None of these