Free Basic Finance Questions and Answers

Question 1

What determines the greatest number in a series of numbers?

Accepted Answer

MAX(B1:B3)

Answer

MAXIMUM(B1:B3)

Answer

HIGHEST(B1:B3)

Answer

HIGH(B1:B3)

Question 2

The cash method of accounting disregards.

Accepted Answer

payables

Answer

Expenses

Answer

revenue

Answer

cash

Question 3

Regular interest payment to bondholders is termed coupon interest

Accepted Answer

coupon

Answer

face value

Answer

principal

Answer

yield

Question 4

The money an investor receives for assuming a risk is known as return.

Accepted Answer

risk premium

Answer

arbitage

Answer

risk free rate

Answer

option value

Question 5

What is the purpose of financial markets?

Accepted Answer

Allocate savings effeciently

Answer

Control inflation

Answer

Increase the price of common stocks

Answer

lower the yield on bonds

Question 6

Calculations involve dividing the price/ratio by the cash flow/share ratio.

Accepted Answer

Price to cash flow ratio

Answer

Divided to stock ratio

Answer

Cash flow to price ratio

Answer

Sales to growth ration

Question 7

Currently, 2:5 Rs. is the current liability. Net working capital is equal to .

Accepted Answer

Rs.(-)18,000

Answer

Rs.(-)45,000

Answer

Rs.45,000

Answer

Rs.18,000

Question 8

What makes an excel pivot table unique

Accepted Answer

It is a tool for data summarization

Answer

None of these

Answer

It is a table having data but organized horizontally

Answer

It is a table for computing financial pivot values

Question 9

This is what the cost of retained earnings is.

Accepted Answer

Cost of equity

Answer

Cost of term loans

Answer

Cost of Debt

Answer

Cost of bank loan

Question 10

A business will have favorable leverage if its __are greater than its debt expense.

Accepted Answer

Earnings

Answer

Interest

Answer

Equity

Answer

Debt