Finance Mcqs


Q.  The process of determining the present value of a payment or a stream of payments that is to be received in the future is known as:

a. Discounting
b. Compounding
c. Factorization
d. None of the given options


ANSWER: See Answer
 
Future value is discounted back at the given interest rate to find out the current worth of the amount to be received in future..
MCQs:  Which of the following statement about bond ratings is TRUE?
Category: MBA Questions,   Published by: teswesm
MCQs:  If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually?
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following statement is TRUE regarding debt?
Category: MBA Questions,   Published by: teswesm
MCQs:  A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following measure reveals how much profit a company generates with the money shareholders have invested?
Category: MBA Questions,   Published by: teswesm
MCQs:  If you have Rs. 850 and you plan to save it for 4 years with an interest rate of 10%, what will be the future value of your savings?
Category: MBA Questions,   Published by: teswesm
MCQs:  In case of international business which of the given factor(s) must be considered?
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following refers to the difference between the sale price and cost of inventory?
Category: MBA Questions,   Published by: teswesm
MCQs:  Who of the following make a broader use of accounting information?
Category: MBA Questions,   Published by: teswesm
MCQs:  The Yield to Maturity of a bond is the same as_____________?
Category: MBA Questions,   Published by: teswesm
MCQs:  Choose from the following a symptom which is not relating to “Over Trading”?
Category: MBA Questions,   Published by: teswesm
MCQs:  The formula to calculate the present value of a single cash flow is given by:
Category: MBA Questions,   Published by: teswesm
MCQs:  The effect of purchasing power or inflation on present value is important because _________?
Category: MBA Questions,   Published by: teswesm
MCQs:  An Asset is __________?
Category: MBA Questions,   Published by: teswesm
MCQs:  If a company revaluates its fixed assets, the current ratio of the company will:
Category: MBA Questions,   Published by: teswesm
MCQs:  If we were studying a sample of 100 students and their examination performance and if the standard deviation of the list of results was say 14, then we could calculated the standard error by ___________?
Category: MBA Questions,   Published by: teswesm
MCQs:  Rule of 72 as a short cut method is explained by the formula:
Category: MBA Questions,   Published by: teswesm
MCQs:  The Capital Asset Pricing Model calculate expected:
Category: MBA Questions,   Published by: teswesm
MCQs:  A technique uses in comparative analysis of financial statement is____________?
Category: MBA Questions,   Published by: teswesm
MCQs:  Net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be________?
Category: MBA Questions,   Published by: teswesm