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Finance Mcqs

A company having a current ratio of 1 will have ………. net working capital.

A. Positive
B. Negative
C. zero
D. None of the given options

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Which of the following set of ratios is used to assess a business’s ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time?

A. Liquidity Ratios
B. Leverage Ratios
C. Profitability Ratios
D. Market Value Ratios

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Which of the following is measured by profit margin?

A. Operating efficiency
B. Asset use efficiency
C. Financial policy
D. Dividend policy

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A portion of profits, which a company retains itself for further expansion, is known as:

A. Dividends
B. Retained Earnings
C. Capital Gain
D. None of the given options

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Quick Ratio is also known as……………?

A. Current Ratio
B. Acid-test Ratio
C. Cash Ratio
D. Solvency Ratio

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Which of the following ratios are particularly interesting to short-term creditors?

A. Liquidity Ratios
B. Long-term Solvency Ratios
C. Profitability Ratios
D. Market Value Ratios

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In which type of market, new securities are traded?

A. Primary market
B. Secondary market
C. Tertiary market
D. None of the given options

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Which of the following terms refers to the use of debt financing?

A. Operating Leverage
B. Financial Leverage
C. Manufacturing Leverage
D. None of the given options

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Standard Company had net sales of Rs. 750,000 over the past year. During that time, average receivables were Rs. 150,000. Assuming a 365-day year, what was the average collection period?

A. 5 days
B. 36 days
C. 48 days
D. 73 days

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Which of the following costs are reported on the income statement as the cost of goods sold?

A. Product cost
B. Period cost
C. Both product cost and period cost
D. Neither product cost nor period cost

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