MCQOPTIONS
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MCQOPTIONS
This section includes 90 Mcqs, each offering curated multiple-choice questions to sharpen your Financial Management/Financial Markets knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
The future value of interest if it is calculated two times a year can be a classified as |
| A. | semiannual discounting |
| B. | annual discounting |
| C. | annual compounding |
| D. | semiannual compounding |
| Answer» E. | |
| 52. |
The right side of the balance sheet states the |
| A. | appreciated earnings |
| B. | liabilities |
| C. | assets |
| D. | stocks earnings |
| Answer» D. stocks earnings | |
| 53. |
The discounted cash flow analysis is also classified as |
| A. | time value of stock |
| B. | time value of money |
| C. | time value of bonds |
| D. | time value of treasury bonds |
| Answer» C. time value of bonds | |
| 54. |
The collection of net income, amortization and depreciation is divided by common shares outstanding to calculate |
| A. | cash flow of financing activities |
| B. | cash flow per share |
| C. | cash flow of investment |
| D. | cash flow of operations |
| Answer» C. cash flow of investment | |
| 55. |
The financial securities that can be converted into cash at closing to their book value price are classified as |
| A. | inventories |
| B. | short-term investments |
| C. | cash equivalents |
| D. | long-term investments |
| Answer» D. long-term investments | |
| 56. |
An interest rate which is paid by the money borrower and charged by lender is considered as |
| A. | annual rate |
| B. | periodic rate |
| C. | perpetuity rate of return |
| D. | annuity rate of return |
| Answer» C. perpetuity rate of return | |
| 57. |
The future value of interest if it is calculated once a year is classified as |
| A. | One time compounding |
| B. | annual compounding |
| C. | semiannual compounding |
| D. | monthly compounding |
| Answer» C. semiannual compounding | |
| 58. |
In the calculation of time value of money, the 'PMT' represents |
| A. | present money tracking |
| B. | payment |
| C. | payment money tracking |
| D. | future money payment |
| Answer» C. payment money tracking | |
| 59. |
The intangible assets such as copyrights, trademarks and patents are applicable for |
| A. | depreciation |
| B. | amortization |
| C. | stock amortization |
| D. | perishable assets |
| Answer» C. stock amortization | |
| 60. |
The left side of balance sheet states the |
| A. | appreciated earnings |
| B. | liabilities |
| C. | assets |
| D. | stocks earnings |
| Answer» C. assets | |
| 61. |
The rate of return that an investment provides its investor is classified as |
| A. | investment return rate |
| B. | internal rate of return |
| C. | international rate of return |
| D. | intrinsic rate of return |
| Answer» C. international rate of return | |
| 62. |
The land, buildings, and factory fixed equipment are classified as |
| A. | tangible asset |
| B. | non-tangible assets |
| C. | financial asset |
| D. | financial liability |
| Answer» B. non-tangible assets | |
| 63. |
In calculation of net cash flow, the deferred tax payments are classified as |
| A. | non-cash revenues |
| B. | non-cash charges |
| C. | current liabilities |
| D. | income expense |
| Answer» C. current liabilities | |
| 64. |
The type of interest rates consist of |
| A. | nominal rates |
| B. | periodic rates |
| C. | effective annual rates |
| D. | all of the above |
| Answer» E. | |
| 65. |
An information uses by the investors for expecting future earnings is all recorded in |
| A. | five years report |
| B. | annual report |
| C. | stock report |
| D. | exchange report |
| Answer» C. stock report | |
| 66. |
The method of inventory recording gives lower cost of goods sold in the income statement is classified as |
| A. | last in first out |
| B. | last out receivable |
| C. | first out receivable |
| D. | first in first out |
| Answer» E. | |
| 67. |
If the common shares outstanding are 50,000,000 and book value per share is $19.92 then the total common equity will be |
| A. | 996000000 |
| B. | 995000000 |
| C. | 992000000 |
| D. | 991000000 |
| Answer» B. 995000000 | |
| 68. |
The security present value is $100 and the future value is $150 after 10 years and value of 'I = interest rate' will be |
| A. | 0.0414 |
| B. | 0.00586 |
| C. | 0.0069 |
| D. | 0.0079 |
| Answer» B. 0.00586 | |
| 69. |
An income available for shareholders after deducting expenses and taxes from revenues is classified as |
| A. | net income |
| B. | net earnings |
| C. | net expenses |
| D. | net revenues |
| Answer» B. net earnings | |
| 70. |
The noncash revenues and noncash charges if it subtracted from net income is equal to |
| A. | free cash flow |
| B. | retained cash flow |
| C. | net cash flow |
| D. | financing cash flow |
| Answer» D. financing cash flow | |
| 71. |
The number of shares outstanding if it is divided by net income for using to calculate |
| A. | earnings per share |
| B. | dividends per share |
| C. | book value of share |
| D. | market value of shares |
| Answer» B. dividends per share | |
| 72. |
The securities with less predictable prices and have longer maturity time is considered as |
| A. | cash equivalents |
| B. | long-term investments |
| C. | inventories |
| D. | short-term investments |
| Answer» E. | |
| 73. |
The type of basic financial statements consist of |
| A. | balance sheet and income statement |
| B. | statement of retained earnings |
| C. | statement of cash flows |
| D. | all of the above |
| Answer» E. | |
| 74. |
The process of calculating future value of money from the present value is classified as |
| A. | compounding |
| B. | discounting |
| C. | money value |
| D. | stock value |
| Answer» B. discounting | |
| 75. |
The purchase cost of assets over its useful life is classified as |
| A. | appreciation |
| B. | depreciation |
| C. | appreciated assets |
| D. | appreciated liabilities |
| Answer» C. appreciated assets | |
| 76. |
In the balance sheet, the sum of retained earnings and common stock are considered as |
| A. | preferred equity |
| B. | due equity |
| C. | common perpetuity |
| D. | common equity |
| Answer» E. | |
| 77. |
The stockholders that do not get benefits even if the company's earnings grow are classified as |
| A. | preferred stockholders |
| B. | common stockholders |
| C. | hybrid stockholders |
| D. | debt holders |
| Answer» B. common stockholders | |
| 78. |
The value of net income is $124,500,000 and the common shares outstanding are 60,000,000 then earnings per share will be |
| A. | 2.75 |
| B. | 0.481 |
| C. | 2.075 |
| D. | 2.8 |
| Answer» D. 2.8 | |
| 79. |
In the time value of money, the nominal rate is |
| A. | not shown on timeline |
| B. | shown on timeline |
| C. | multiplied on timeline |
| D. | divided on timeline |
| Answer» B. shown on timeline | |
| 80. |
The payments if it is made at the end of each period such as an end of the year is classified as |
| A. | ordinary annuity |
| B. | deferred annuity |
| C. | annuity due |
| D. | both a and b |
| Answer» E. | |
| 81. |
In uneven cash flow, the 'IRR' is an abbreviation of an |
| A. | internal rate of return |
| B. | international rate of return |
| C. | intrinsic rate of return |
| D. | investment return rate |
| Answer» B. international rate of return | |
| 82. |
The procedure of finding the present values in time value of money is classified as |
| A. | compounding |
| B. | discounting |
| C. | money value |
| D. | stock value |
| Answer» C. money value | |
| 83. |
The paid dividends to common stockholders $67,600,000 and common shares outstanding = 55,000,000 then the dividend per share will be |
| A. | 1.229 |
| B. | 0.813 |
| C. | 2.12 |
| D. | 2.78 |
| Answer» B. 0.813 | |
| 84. |
A stock which is hybrid and works as a cross between debt and common stock is considered as |
| A. | hybrid stock |
| B. | common liabilities |
| C. | debt liabilities |
| D. | preferred stock |
| Answer» E. | |
| 85. |
A company who issues bonds or stocks in result raised funds which finally |
| A. | increases liabilities |
| B. | increases equity |
| C. | increases cash |
| D. | decreases cash |
| Answer» D. decreases cash | |
| 86. |
An annual estimated costs of assets uses up every year are included |
| A. | depreciation and amortization |
| B. | net sales |
| C. | net profit |
| D. | net income |
| Answer» B. net sales | |
| 87. |
In calculation of net cash flow, the depreciation and amortization are treated as |
| A. | current liabilities |
| B. | income expenses |
| C. | non-cash revenues |
| D. | non-cash charges |
| Answer» E. | |
| 88. |
A company purchases goods but does not pay payments to the suppliers immediately and record them as |
| A. | account payable |
| B. | account receivable |
| C. | current liabilities |
| D. | accumulated liabilities |
| Answer» B. account receivable | |
| 89. |
The statement of cash flows are included |
| A. | operating activities |
| B. | investing activities |
| C. | financing activities |
| D. | all of above |
| Answer» E. | |
| 90. |
The proceeds of the company shares of sold stock is recorded in |
| A. | preferred stock account |
| B. | common stock account |
| C. | due stock account |
| D. | preceded stock account |
| Answer» C. due stock account | |