Business Finance MCQ Questions and Solutions with Explanations | Commerce

A. Only 1

B. Only 2

C. Both 1 and 2

D. Neither 1 nor 2

A. (A) is correct, and (R) is the correct explanation of (A)

B. (A) is correct, but (R) is incorrect

C. (R) is correct, but (A) is incorrect

D. Both (A) and (R) are incorrect

A. current assets - current liabilities

B. fixed assets

C. total assets

D. current assets

A. a-4, b-2, c-3, d-1, e-5

B. a-4, b-1, c-5, d-2, e-4

C. a-2, b-3, c-5, d-1, e-4

D. a-5, b-3, c-2, d-4, e-1

A. Rs. 20

B. Rs. 40

C. Rs. 60

D. Rs. 80

A. an example of 'moderate risk-moderate (potential) profitability' assets financing

B. an example of 'low risk-low (potential) profitability' assets financing

C. an example of 'high risk-high (potential) profitability' assets financing

D. an example of the 'hedging approach' for financing

A. finance lease

B. operating lease

C. mixed lease

D. accounting lease

A. a-1, b-3, c-4, d-2

B. a-2, b-3, c-1, d-4

C. a-3, b-4, c-1, d-2

D. a-2, b-3, c-4, d-1

A. The future value of an annuity due to greater than an otherwise identical ordinary annuity

B. A reduction in the discount rate will increase the future value of an otherwise identical cash flow stream

C. Continuous compounding will result in a higher present value relative to an otherwise identical investment compounded monthly at the same nominal rate

D. The FVIFA (i%, N periods) equals the sum of the PVIF (i%, n) for n = 1 to N periods

A. Special Drawing Rights

B. US dollars

C. Chinese renminbi

D. British pound