Finance MCQs
Finance MCQs offer a deep dive into the principles and practices of financial management, investment analysis, capital markets, and corporate finance. Whether you're an MBA student, CFA candidate, or a job aspirant targeting finance-related government or banking positions, these questions are tailored to sharpen your financial acumen. Topics include time value of money, capital budgeting, risk and return, financial instruments, working capital management, and portfolio theory. These MCQs are ideal for preparing for tests like PPSC, FPSC, NTS, SBP, and other competitive finance exams. The set includes real-world financial scenarios to help you develop analytical thinking and decision-making skills. Build a strong conceptual base in finance and improve your speed and accuracy through regular practice.
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