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: Risk that affects only a specific company is known as
A) Unsystematic risk
B) Systematic risk
C) Economic risk
D) Market risk
Q: A company’s retained earnings are shown under
A) Liabilities
B) Equity
C) Assets
D) Expenses
Q: A progressive tax system means
A) Lower income pays more
B) Tax decreases with income
C) Same tax for all
D) Tax increases with income
Q: When two assets have negative correlation
A) Portfolio risk is minimized
B) Portfolio return is maximized
C) Both assets fail together
D) Risk is irrelevant
Q: The breakeven point occurs where
A) Revenue equals profit
B) Revenue equals total costs
C) Revenue equals fixed costs
D) Revenue equals variable costs
Q: A company's ability to meet long-term obligations is assessed using
A) Profitability ratios
B) Liquidity ratios
C) Solvency ratios
D) Efficiency ratios
Q: A stock split results in
A) Decrease in total shares
B) More shares at lower price
C) Higher dividend per share
D) Increase in value per share
Q: Market capitalization is calculated by
A) Sales × Assets
B) Earnings per share × Total shares
C) Price per share × Total shares
D) Net profit ÷ Total shares
Q: Cash flow from operating activities includes
A) Depreciation
B) Loan proceeds
C) Sale of equipment
D) Interest income
Q: The current ratio is calculated by
A) Net income ÷ Current assets
B) Fixed assets ÷ Current liabilities
C) Current assets ÷ Current liabilities
D) Revenue ÷ Current liabilities