Finance MCQs

Page No. 7

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


aAccumulated depreciation

✓


bDepleted depreciation

✖


cAccumulated appreciation

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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

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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

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dNumber of premium received

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


aFuture value of perpetuity

✖


bPresent value of perpetuity

✓


cDue perpetuity

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dDeferred perpetuity

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