Accounting, Banking and Finance MCQs

Business Finance

Quiz # 1, MCQs

NOTE: Attempt all Questions to see the Result at the bottom of this page.

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  1. 1)

    Period costs include which of the following?

    • A) Selling expense
    • B) Raw material
    • C) Direct labor
    • D) Manufacturing overhead

  2. 2)

    Product costs include which of the following?

    • A) Selling expenses
    • B) General expenses
    • C) Manufacturing overhead
    • D) Administrative expenses

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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