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

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

A. Surplus Asset
B. Short-term Ratio
C. Working Capital
D. Current Ratio

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

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

Which of the following set of ratios is used to assess a business’s ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time?A. Liquidity Ratios
B. Leverage Ratios
C. Profitability Ratios
D. Market Value Ratios

Which of the following is measured by profit margin?

A. Operating efficiency
B. Asset use efficiency
C. Financial policy
D. Dividend policy

Profit margin ratio is calculated to determine how efficiently the business is generating cash from operations (below taxes and interest).

A portion of profits, which a company retains itself for further expansion, is known as:

A. Dividends
B. Retained Earnings
C. Capital Gain
D. None of the given options

Quick Ratio is also known as_______________?

A. Current Ratio
B. Acid-test Ratio
C. Cash Ratio
D. Solvency Ratio

Which of the following ratios are particularly interesting to short-term creditors?

A. Liquidity Ratios
B. Long-term Solvency Ratios
C. Profitability Ratios
D. Market Value Ratios

In which type of market, new securities are traded?

A. Primary market
B. Secondary market
C. Tertiary market
D. None of the given options