MCQOPTIONS
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MCQOPTIONS
This section includes 25 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Accounting and Finance (BAF) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Intrinsic value of a bond is ______________ vlaue of the all future cash flows |
| A. | past |
| B. | present |
| C. | estimated |
| D. | future |
| Answer» C. estimated | |
| 2. |
______ Means the basic criteria for the extension of credit to customers |
| A. | credit standards |
| B. | finnacial position |
| C. | cash standards |
| D. | living standards |
| Answer» B. finnacial position | |
| 3. |
The Presence of Taxes in capital budgeting analysis will cause ___________ |
| A. | the arr to remain same |
| B. | the npv to increase |
| C. | the irr to decrease |
| D. | all of the above |
| Answer» D. all of the above | |
| 4. |
__________ Can be traded thourgh out the trading day at market prices |
| A. | mmmf |
| B. | debt fund |
| C. | etf |
| D. | equity fund |
| Answer» D. equity fund | |
| 5. |
MM model of dividend irrelevance uses arbitrage between- |
| A. | dividend and capital issue |
| B. | dividend and bonus |
| C. | profit and investment |
| D. | none of the above |
| Answer» B. dividend and bonus | |
| 6. |
Accountng rate of return is based on _____________ |
| A. | life of the project |
| B. | average expected profit |
| C. | average cash profit |
| D. | average past profit |
| Answer» C. average cash profit | |
| 7. |
Financial mananger would play the role of __________ in area of finance |
| A. | budget analyst |
| B. | cash analyst |
| C. | cash flow examiners |
| D. | persoanl financial advisors |
| Answer» B. cash analyst | |
| 8. |
_________Policy refers to the procedure follow to collect accounts receivable after the expiry of the credit period |
| A. | risk |
| B. | collection |
| C. | profit |
| D. | manangment |
| Answer» C. profit | |
| 9. |
Face value is the value stated on the face of the bond and is known as- |
| A. | redemption value |
| B. | per value |
| C. | intrinsic value |
| D. | market value |
| Answer» C. intrinsic value | |
| 10. |
Investors subscriptions are accounted as _____________ |
| A. | cash |
| B. | deposits |
| C. | liabilities |
| D. | unit capital |
| Answer» E. | |
| 11. |
Residuals theory argues that dividend is as - |
| A. | passive decision |
| B. | irrelevant decision |
| C. | active decision |
| D. | relevant decision |
| Answer» B. irrelevant decision | |
| 12. |
In case of risky projects the required rate of return would generally be- |
| A. | neutral |
| B. | lower |
| C. | moderate |
| D. | higher |
| Answer» E. | |
| 13. |
Financial manager would not supervise on the following area |
| A. | cost analyst |
| B. | working capital advisor |
| C. | financial accounting and auditing |
| D. | cash flow advisor |
| Answer» D. cash flow advisor | |
| 14. |
All listed and traded securities are valued at _______ |
| A. | book value |
| B. | cost |
| C. | cost+ profit |
| D. | closing market price |
| Answer» E. | |
| 15. |
Evaluation of firms credit policy can be done by computing expected ___________ from it |
| A. | net benefit |
| B. | net loss |
| C. | net profit |
| D. | net cost |
| Answer» B. net loss | |
| 16. |
When the required rate of return is less than the coupon rate the premium on the bond- |
| A. | remains same |
| B. | variable |
| C. | declines |
| D. | increases |
| Answer» D. increases | |
| 17. |
PI of project is the ratio of present value of inflows to- |
| A. | total outflows |
| B. | initial cost |
| C. | pv of outflows |
| D. | total cash inflows |
| Answer» D. total cash inflows | |
| 18. |
Bird in hand - argument is given by |
| A. | residuals theory |
| B. | walter model |
| C. | mm model |
| D. | gordon\s model |
| Answer» E. | |
| 19. |
Objectives of financial planning are |
| A. | determining capital structure |
| B. | framing loan policies |
| C. | determining cash requirement |
| D. | determining finance ratio |
| Answer» B. framing loan policies | |
| 20. |
Relaxed or libral credit implies -credit to customers |
| A. | higher |
| B. | both a and b |
| C. | lower |
| D. | neither a nor b |
| Answer» B. both a and b | |
| 21. |
The bonds with shorter maturity will have ______ duration |
| A. | moderate |
| B. | higher |
| C. | lower |
| D. | average |
| Answer» D. average | |
| 22. |
Acccording to the traditional approach what is the effect of increase in degree of leverage on the valuation of the firm |
| A. | remains unaffected |
| B. | increase first and then decreases |
| C. | decreases |
| D. | increases |
| Answer» C. decreases | |
| 23. |
The maximum expenses that an equity scheme charge to an investor is ____________ |
| A. | 0.025 |
| B. | 0.0225 |
| C. | 0.0175 |
| D. | 0.02 |
| Answer» B. 0.0225 | |
| 24. |
Which of the following variable is not known in IRR? |
| A. | discount rate |
| B. | terminal inflows |
| C. | life of the project |
| D. | intitial cash flows |
| Answer» B. terminal inflows | |
| 25. |
All business need to have which fundamental essential element |
| A. | human resources |
| B. | balance sheet |
| C. | labour team |
| D. | stategy |
| Answer» E. | |