Finance MCQs

Page No. 7

Total amount of depreciation charged on long term assets is classified as______________?


aAccumulated depreciation


bDepleted depreciation


cAccumulated appreciation


dAccumulated appreciation schedule



In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in______________?


aIncreased cash


bDecreased cash


cIncreased liabilities


dIncreased equity



Future value of interest if it is calculated two times a year can be a classified as__________________?


aSemiannual discounting


bAnnual discounting


cAnnual compounding


dSemiannual compounding



rate which is divided by compounding periods to calculate periodic rate must be___________________?


aAnnuity return


bDeferred annuity return


cNominal rate


dSemiannual discount rate


View Answer Nominal rate

An annuity with an extended life is classified as_____________? Extended life


aExtended life


bPerpetuity


cDeferred perpetuity


dDue perpetuity


View Answer Perpetuity

A stock which is hybrid and works as a cross between debt and common stock is considered as_______________?


aHybrid stock


bCommon liabilities


cDebt liabilities


dPreferred stock


View Answer Preferred stock

A company who issues bonds or stocks in result raised funds which finally____________?


aIncreases liabilities


bIncreases equity


cIncreases cash


dDecreases cash


View Answer Increases cash

Procedure of finding present values in time value of money is classified as____________?


aCompounding


bDiscounting


cMoney value


dStock value


View Answer Discounting

In calculation of time, value of money, ”N ”represents___________?


aNumber of payment periods


bNumber of investment


cNumber of installments


dNumber of premium received



Payment if it is divided with interest rate will be formula of__________?


aFuture value of perpetuity


bPresent value of perpetuity


cDue perpetuity


dDeferred perpetuity



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