Finance & Accounting MCQs

Which of the following is a liquidity ratio?

• Debt-Equity Ratio

• Current Ratio

• Return on Equity

• Net Profit Margin

In capital budgeting, which method considers the time value of money?

• Payback Period

• Accounting Rate of Return

• Net Present Value (NPV)

• Average Return on Investment

Which of the following is NOT a source of long-term finance?

• Equity Shares

• Debentures

• Commercial Paper

• Preference Shares

What does Beta (β) measure in finance?

• Company's net profit ratio

• Volatility of a stock compared to the market

• Firm's dividend policy

• Liquidity position of a company

If a company's EBIT = ₹1,00,000, Interest = ₹20,000, and Preference Dividend = ₹10,000, then the financial leverage is calculated on the basis of:

• EBIT / EBT

• EBT / EBIT

• EPS / DPS

• Debt / Equity

The cost of equity capital is generally calculated using:

• Weighted Average Cost of Capital (WACC)

• Capital Asset Pricing Model (CAPM)

• Payback Period Method

• Net Present Value Method

Which of the following has the first claim on company assets at the time of liquidation?

• Equity Shareholders

• Preference Shareholders

• Debenture Holders

• Government (Tax Authorities)

EPS (Earnings Per Share) is calculated as:

• Net Income / Equity Capital

• Net Income / Number of Equity Shares

• EBIT / Total Assets

• Net Profit / Sales

Preference shareholders enjoy:

• Higher ownership rights than equity shareholders

• Fixed dividend and priority over equity in dividend distribution

• Voting rights in all matters of management

• Guaranteed repayment with interest

Which financial instrument provides fixed interest and has no voting rights?

• Equity Shares

• Preference Shares

• Debentures

• Warrants