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Accounting, Banking and Finance MCQs
Business Finance
Quiz # 1, MCQs
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1)
Period costs include which of the following?
- A) Selling expense
- B) Raw material
- C) Direct labor
- D) Manufacturing overhead
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2)
Product costs include which of the following?
- A) Selling expenses
- B) General expenses
- C) Manufacturing overhead
- D) Administrative expenses
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3)
Financial policy is evaluated by which of the following?
- A) Profit Margin
- B) Total Assets Turnover
- C) Debt-equity ratio
- D) None of the given options
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4)
Cash flow from assets involves which of the following component(s)?
- A) Operating cash flow
- B) Capital spending
- C) Change in net working capital
- D) All of the given options
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5)
Which of the following refers to the cash flows that result from the firm‟s day-to-day activities of producing and selling?
- A) Operating Cash Flows
- B) Investing Cash Flows
- C) Financing Cash Flows
- D) All of the given options
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6)
Finance is vital for which of the following business activity (activities)?
- A) Marketing Research
- B) Product Pricing
- C) Design of marketing and distribution channels
- D) All of the given options
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7)
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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8)
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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9)
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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10)
In which type of market, new securities are traded?
- A) Primary market
- B) Secondary market
- C) Tertiary market
- D) None of the given options
