Finance MCQs
Finance MCQs cover financial management, investment analysis, markets, and corporate finance. Ideal for MBA, CFA, and competitive exams like PPSC, FPSC, NTS, and SBP, they build concepts, analytical skills, speed, and accuracy through real-world scenarios.
Q: The DuPont analysis breaks ROE into
A) Solvency ratios
B) Profitability, efficiency, and leverage
C) Turnover only
D) Asset-only ratios
✅ Correct Answer: B
Explanation: DuPont analysis decomposes return on equity into key performance components.
Q: Asset turnover ratio indicates
A) Operational efficiency
B) Liquidity
C) Solvency
D) Profitability
✅ Correct Answer: A
Explanation: Asset turnover reveals how effectively assets generate revenue.
Q: A company’s book value per share is calculated by
A) Revenue ÷ Liabilities
B) Cash flow ÷ Assets
C) Total equity ÷ Number of shares
D) Market value ÷ Shares
✅ Correct Answer: C
Explanation: Book value per share represents the equity backing each share.
Q: An IPO allows a company to
A) Sell shares to the public
B) Increase employee wages
C) Buy back shares
D) Issue debt instruments
✅ Correct Answer: A
Explanation: Initial Public Offering is the first sale of shares to public investors.
Q: Commercial paper is issued for
A) Short-term financing
B) Employee bonuses
C) Long-term investments
D) Paying taxes
✅ Correct Answer: A
Explanation: Commercial paper is an unsecured, short-term debt instrument used for funding immediate needs.