Finance MCQs

Page No. 8

In time value of money, periodic rate is_________?


aNot shown on timeline

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bShown on timeline

✓


cMultiplied on timeline

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dDivided on timeline

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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

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bCash flow per share

✓


cCash flow of investment

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dCash flow of operations

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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

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bLump sum amount

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cFixed interval investment

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dAnnuity

✓


View Answer Annuity

Prices of bonds will be decreased if an interest rates_________?


aRises

✓


bDeclines

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cEquals

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dNone of above

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View Answer Rises

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


aInventories

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bShort-term investments

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cCash equivalents

✓


dLong-term investments

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View Answer Cash equivalents

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


aAnnual percentage rate

✓


bAnnual rate of return

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cLoan rate of return

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dLocal rate of return

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


aAmortized loan

✓


bDepreciated loan

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cAppreciated loan

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dRepaid payments

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View Answer Amortized loan

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


aDepreciation

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bAmortization

✓


cStock amortization

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dPerishable assets

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View Answer Amortization

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


aAnnual rate

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bPeriodic rate

✓


cPerpetuity rate of return

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dAnnuity rate of return

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View Answer Periodic rate

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


aTangible asset

✓


bNon-tangible assets

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cFinancial asset

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dFinancial liability

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View Answer Tangible asset

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