MBA Finance MCQs with answers

MBA Finance MCQs and answers with easy and logical explanations. MBA Finance provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. MBA Business MCQs are important for exams like CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other accounts and management department exam and interviews for various private or public sector.

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* projects which are mutually exclusive but different on scale of production or time of completion than the

External return method

Net present value of method

Net future value method

Internal return method

A company purchases goods but does not pay payments to suppliers immediately and record them as

Account payable

Account receivable

Current liabilities

Accumulated liabilities

A company sells its stock shares for raising more equity capital is classified as

Dealer communication offering

Seasoned equity offering

Electronic equity offering

Electronic order offering

A company that sells products to customer without demanding immediate payment but record it in balance sheet as

Account payable

Account receivable

Account equivalent

Account investment

A companys low earnings power and high interest cost cause financial changes, which have

High return on equity

High return on assets

Low return on assets

Low return on equity

A curve which shows attitude towards risk just way reflected in return trade-off function is classified as

Difference curve

Indifference curve

Efficiency curve

Affectivity curve

A discount rate which is equal to present value of TV to project cost present value is classified as

Negative internal rate of return

Modified internal rate of return

Existed internal rate of return

Relative rate of return

A formula such as net income available to common stockholders divided by common equity is used to calculate

Return on earnings power

Return on investment

Return on common equity

Return on interest

A high portfolio return is subtracted from low portfolio return to calculate

HML portfolio

R portfolio

Subtracted portfolio

ML portfolio

A line which shows relationship between an expected return and risk on efficient portfolio is considered as

Efficient market line

Attributable market line

Capital market line

Security market line

A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as

Amortized loan

Depreciated loan

Appreciated loan

Repaid payments

A market interest rate for specific type of bond is classified as bonds

Required rate of return

Required option

Required rate of redemption

Required rate of earnings

A model which regresses return of stock against return of market is classified as

Regression model

Market model

Error model

Risk free model

A modified internal rate of return is considered as present value of costs and is equal to

P.v of hurdle rate

Fv of hurdle rate

P.v of terminal value

Fv of terminal value

A point where profile of net present value crosses horizontal axis at plotted graph indicates project


Cash flows

Internal rate of return

External rate of return

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