Finance Mcqs - Set 12

1)   Proceeds of company shares of sold stock is recorded in___________?

a. Preferred stock account
b. Common stock account
c. Due stock account
d. Preceded stock account
Answer  Explanation 

ANSWER: Common stock account

Explanation:
No explanation is available for this question!


2)   In time value of money, nominal rate is_______________?

a. Not shown on timeline
b. Shown on timeline
c. Multiplied on timeline
d. Divided on timeline
Answer  Explanation 

ANSWER: Not shown on timeline

Explanation:
No explanation is available for this question!


3)   An annual estimated cost of assets uses up every year is included__________?

a. Depreciation and amortization
b. Net sales
c. Net profit
d. Net income
Answer  Explanation 

ANSWER: Depreciation and amortization

Explanation:
No explanation is available for this question!


4)   In calculation of net cash flow, depreciation and amortization are treated as________?

a. Current liabilities
b. Income expenses
c. Non-cash revenues
d. Non-cash charges
Answer  Explanation 

ANSWER: Non-cash charges

Explanation:
No explanation is available for this question!


5)   Stockholders that do not get benefits even if company’s earnings grow are classified as_____________?

a. Preferred stockholders
b. Common stockholders
c. Hybrid stockholders
d. Debt holders
Answer  Explanation 

ANSWER: Preferred stockholders

Explanation:
No explanation is available for this question!


6)   Number of shares outstanding if it is divided by net income for using to calculate___________?

a. Earning per share
b. Dividends per share
c. Book value of share
d. Market value of shares
Answer  Explanation 

ANSWER: Earning per share

Explanation:
No explanation is available for this question!


7)   An income available for shareholders after deducting expenses and taxes from revenues is classified as______________?

a. Net income
b. Net earnings
c. Net expenses
d. Net revenues
Answer  Explanation 

ANSWER: Net income

Explanation:
No explanation is available for this question!


8)   Process of calculating future value of money from present value is classified as____________?

a. Compounding
b. Discounting
c. Money value
d. Stock value
Answer  Explanation 

ANSWER: Compounding

Explanation:
No explanation is available for this question!


9)   In balance sheet, sum of retained earnings and common stock are considered as_____________?

a. Preferred equity
b. Due equity
c. Common perpetuity
d. Common equity
Answer  Explanation 

ANSWER: Common equity

Explanation:
No explanation is available for this question!


10)   Purchase cost of assets over its useful life is classified as_________?

a. Appreciation
b. Depreciation
c. Appreciated assets
d. Appreciated liabilities
Answer  Explanation 

ANSWER: Depreciation

Explanation:
No explanation is available for this question!


11)   Securities with less predictable prices and have longer maturity time is considered as_______________?

a. Cash equivalents
b. Long-term investments
c. Inventories
d. Short-term investments
Answer  Explanation 

ANSWER: Short-term investments

Explanation:
No explanation is available for this question!


12)   An information uses by investors for expecting future earnings is all recorded in__________?

a. Five years report
b. Annual report
c. Stock report
d. Exchange report
Answer  Explanation 

ANSWER: Annual report

Explanation:
No explanation is available for this question!


13)   Non cash revenues and non cash charges if it subtracted from net income is equal to___________?

a. Free cash flow
b. Retained cash flow
c. Net cash flow
d. Financing cash flow
Answer  Explanation 

ANSWER: Net cash flow

Explanation:
No explanation is available for this question!


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

a. Tangible asset
b. Non-tangible assets
c. Financial asset
d. Financial liability
Answer  Explanation 

ANSWER: Tangible asset

Explanation:
No explanation is available for this question!


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

a. Annual rate
b. Periodic rate
c. Perpetuity rate of return
d. Annuity rate of return
Answer  Explanation 

ANSWER: Periodic rate

Explanation:
No explanation is available for this question!


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

a. Depreciation
b. Amortization
c. Stock amortization
d. Perishable assets
Answer  Explanation 

ANSWER: Amortization

Explanation:
No explanation is available for this question!


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

a. Amortized loan
b. Depreciated loan
c. Appreciated loan
d. Repaid payments
Answer  Explanation 

ANSWER: Amortized loan

Explanation:
No explanation is available for this question!


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

a. Annual percentage rate
b. Annual rate of return
c. Loan rate of return
d. Local rate of return
Answer  Explanation 

ANSWER: Annual percentage rate

Explanation:
No explanation is available for this question!


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

a. Inventories
b. Short-term investments
c. Cash equivalents
d. Long-term investments
Answer  Explanation 

ANSWER: Cash equivalents

Explanation:
No explanation is available for this question!


20)   Prices of bonds will be decreased if an interest rates_________?

a. Rises
b. Declines
c. Equals
d. None of above
Answer  Explanation 

ANSWER: Rises

Explanation:
No explanation is available for this question!


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

a. Fixed payment investment
b. Lump sum amount
c. Fixed interval investment
d. Annuity
Answer  Explanation 

ANSWER: Annuity

Explanation:
No explanation is available for this question!


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

a. Cash flow of financing activities
b. Cash flow per share
c. Cash flow of investment
d. Cash flow of operations
Answer  Explanation 

ANSWER: Cash flow per share

Explanation:
No explanation is available for this question!


23)   In time value of money, periodic rate is_________?

a. Not shown on timeline
b. Shown on timeline
c. Multiplied on timeline
d. Divided on timeline
Answer  Explanation 

ANSWER: Shown on timeline

Explanation:
No explanation is available for this question!


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

a. Future value of perpetuity
b. Present value of perpetuity
c. Due perpetuity
d. Deferred perpetuity
Answer  Explanation 

ANSWER: Present value of perpetuity

Explanation:
No explanation is available for this question!


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

a. Number of payment periods
b. Number of investment
c. Number of installments
d. Number of premium received
Answer  Explanation 

ANSWER: Number of payment periods

Explanation:
No explanation is available for this question!


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

a. Compounding
b. Discounting
c. Money value
d. Stock value
Answer  Explanation 

ANSWER: Discounting

Explanation:
No explanation is available for this question!


27)   Rate of return that an investment provides its investor is classified as__________?

a. Investment return rate
b. Internal rate of return
c. International rate of return
d. Intrinsic rate of return
Answer  Explanation 

ANSWER: Internal rate of return

Explanation:
No explanation is available for this question!


28)   In calculation of net cash flow, deferred tax payments are classified as______________?

a. Non-cash revenues
b. Non-cash charges
c. Current liabilities
d. Income expense
Answer  Explanation 

ANSWER: Non-cash charges

Explanation:
No explanation is available for this question!


29)   Method of inventory recording gives lower cost of goods sold in income statement is classified as______________?

a. Last in first out
b. Last out receivable
c. First out receivable
d. First in first out
Answer  Explanation 

ANSWER: First in first out

Explanation:
No explanation is available for this question!


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

a. Increases liabilities
b. Increases equity
c. Increases cash
d. Decreases cash
Answer  Explanation 

ANSWER: Increases cash

Explanation:
No explanation is available for this question!