Finance MCQs

Page No. 8

In time value of money, periodic rate is_________?


aNot shown on timeline


bShown on timeline


cMultiplied on timeline


dDivided on timeline


View Answer Shown on timeline

Collection of net income, amortization and depreciation is divided by common shares outstanding to calculate______________?


aCash flow of financing activities


bCash flow per share


cCash flow of investment


dCash flow of operations


View Answer Cash flow per share

If payment of security is paid as $100 at end of year for three years, it is an example of______________?


aFixed payment investment


bLump sum amount


cFixed interval investment


dAnnuity


View Answer Annuity

Prices of bonds will be decreased if an interest rates_________?


aRises


bDeclines


cEquals


dNone of above


View Answer Rises

Financial securities that can be converted into cash at closing to their book value price are classified as_______________?


aInventories


bShort-term investments


cCash equivalents


dLong-term investments


View Answer Cash equivalents

Nominal rate which is quoted to consumers on loans is considered as__________?


aAnnual percentage rate


bAnnual rate of return


cLoan rate of return


dLocal rate of return



A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as____________?


aAmortized loan


bDepreciated loan


cAppreciated loan


dRepaid payments


View Answer Amortized loan

Intangible assets such as copyrights, trademarks and patents are applicable for____________?


aDepreciation


bAmortization


cStock amortization


dPerishable assets


View Answer Amortization

An interest rate which is paid by money borrower and charged by lender is considered as_____________?


aAnnual rate


bPeriodic rate


cPerpetuity rate of return


dAnnuity rate of return


View Answer Periodic rate

Land, buildings, and factory fixed equipment are classified as____________?


aTangible asset


bNon-tangible assets


cFinancial asset


dFinancial liability


View Answer Tangible asset

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