WorksheetsStock Market & Financial Statements MCQs
Total questions: 15
Worksheet time: 8mins
A company has a stock price of ₹200 and a book value per share of ₹50. What is its Price-to-Book (P/B) ratio?
2
3
4
5
Which of the following best describes an Initial Public Offering (IPO)?
A company issuing shares for the first time to the public
A company repurchasing its own shares from the market
A company issuing dividends to existing shareholders
A company acquiring another company using shares
If a stock has a Price-to-Earnings (P/E) ratio of 25, it means:
The stock price is 25 times its earnings per share
The company has a 25% profit margin
The company earns ₹25 per share
The stock is overvalued
A company's gross profit is calculated as:
Revenue - Operating Expenses
Revenue - Cost of Goods Sold
Revenue - Net Profit
Net Profit + Taxes
If you invest ₹1,00,000 in a stock that grows at 15% per annum, approximately how much will you have after 3 years with annual compounding?
₹1,45,000
₹1,52,000
₹1,52,087
₹1,60,000
A company reports negative cash flow from investing activities. This generally means:
The company is making losses
The company is investing in assets for growth
The company has high liabilities
The company is issuing more shares
Which of the following expenses is NOT included in operating expenses on the Profit & Loss statement?
Employee Salaries
Rent Expenses
Interest Paid on Loans
Advertising Costs
Which of the following is NOT a function of SEBI (Securities and Exchange Board of India)?
Regulating stock exchanges
Protecting investor interests
Setting monetary policy in India
Monitoring insider trading
If a company has current assets worth ₹5,00,000 and current liabilities worth ₹2,50,000, what is its current ratio?
1.5
2.0
2.5
3.0
Which activity is NOT classified under cash flows from operating activities?
Sale of goods
Payment to suppliers
Depreciation expense
Sale of machinery
The Rule of 72 states that if an investment grows at a rate of 12% per annum, it will approximately double in:
4 years
6 years
8 years
9 years
If a company issues bonus shares in a 1:1 ratio, what happens to the total number of shares held by an investor who owns 100 shares?
Stays the same
Becomes 200 shares
Decreases to 50 shares
No impact on shareholding
On a company's balance sheet, which of the following is classified as a liability?
Inventory
Accounts Receivable
Retained Earnings
Short-Term Loans
A company with a Debt-to-Equity Ratio (D/E) of 3:1 implies that:
It has 3 times more debt than equity
It has 3 times more equity than debt
It has equal debt and equity
It has no debt
Which of the following is an asset on the balance sheet?
Accounts Payable
Bank Loan
Inventory
Equity Capital
