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Financial Accounting MCQ

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21st Feb, 2023
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Financial Accounting MCQ Free Pdf
Financial Accounting MCQ Questions
Financial Accounting MCQ With Answers

Financial Accounting MCQ Questions

1. Which one of the following is a financial asset?
2. The cost of capital is ________.
3. Which of the following is not a primary source of long-term debt financing?
4. Which of the following is not a true statement about commercial paper?
5. The four basic sources of long-term funds for a firm are ________.
6. All of the following represent cash outflows to the firm except.
7. Current assets - current liabilities = ________ capital.
8. Which of the following is true of net working capital?
9. Which one of the following best matches the primary goal of financial management?
10. Which of the following is not a component of money management?
11. A fixed asset can also be referred to as a ________ asset.
12. Which one of the following represents a cash outflow from a corporation?
13. Which of the following is a long-term financing option for a firm?
14. Bank capital is equal to ________ minus ________.
15. Which of the following goals is in the best long-term interest of stockholders?
16. Which of the following is not true about capital budgeting?
17. Cash and cash equivalents are divided by ________ to determine the cash ratio.
18. Which of the following is the best definition of a current liability?
19. Which of the following is a component of money management?
20. "Which of the following is a source of cash flows"

Take Financial Accounting MCQ Test & Online Quiz to test your knowledge

We have listed below the best Financial Accounting MCQ Questions, that check your basic knowledge of Financial Accounting. This Financial Accounting MCQ Test contains 20 Multiple Choice Questions. You have to select the right answer to every question to check your final preparation of the Financial Accounting Exam/Interviews. apart from this, you can also download the Financial Accounting MCQ Free PDF from the given link between the Quiz.

Financial Accounting MCQ with Answers

1) Which one of the following is a financial asset?

A. A machine
B.A factory
C.A corporate bond
D.All of the Above

2) The cost of capital is ________.

A. another name for the IRR
B.the cost of debt in a firm that finances with both debt and equity
C.the cost of each financing component multiplied by that component's percent of the total borrowed
D.None of above

3) Which of the following is not a primary source of long-term debt financing?

A. Bonds
B.Leases
C.Notes payable
D.Accounts payable

4) Which of the following is not a true statement about commercial paper?

A. Finance paper is also referred to as direct paper.
B.Dealer paper is sold directly to the lender by a finance company.
C.Finance paper is sold directly to the lender by the finance company.
D.Industrial companies, utility firms, or finance companies too small to sell direct paper sell dealer paper instead.

5) The four basic sources of long-term funds for a firm are ________.

A. long-term debt
B.common stock
C.preferred stock
D.All of the Above

Download Free : Financial Accounting MCQ PDF

6) All of the following represent cash outflows to the firm except.

A. Depreciation.
B.Taxes
C.Interest payments
D.Dividends

7) Current assets - current liabilities = ________ capital.

A. gaining
B.working
C.losing
D.None of above

8) Which of the following is true of net working capital?

A. It is not equal to Gross Working capital
B.It is a measurement of the companies solvency
C.It is directly related to the ability to service other expenses
D.All of the Above

9) Which one of the following best matches the primary goal of financial management?

A. Increasing the firm's liquidity
B.Increasing the market value of firm
C.Increasing the dollar amount of each sale
D.Transforming fixed costs into variable costs

10) Which of the following is not a component of money management?

A. Storing personal financial records
B.Creating personal financial statements
C.Creating a budget are all
D.All of the Above

11) A fixed asset can also be referred to as a ________ asset.

A. liquid
B.current
C.tangible
D.trading account

12) Which one of the following represents a cash outflow from a corporation?

A. new loan proceeds
B.payment of dividends
C.payment of government taxes
D.Both payment of dividends & Government taxes

13) Which of the following is a long-term financing option for a firm?

A. Corporate bonds
B.Liquidity
C.trade credit
D.None of above

14) Bank capital is equal to minus .

A. total liabilities; total assets
B.total assets; total liabilities
C.total assets; total reserves
D.None of above

15) Which of the following goals is in the best long-term interest of stockholders?

A. Risk minimization
B.Profit maximization
C.Maximizing sales revenues
D.Maximizing of the market value of the existing shareholders' common stock

16) Which of the following is not true about capital budgeting?

A. It involves large capital investments.
B.The large capital investments can be reversed at any time.
C.It involves identifying projects that will add to the firm's value.
D.None of above

17) Cash and cash equivalents are divided by ________ to determine the cash ratio.

A. equity
B.fixed assets
C.total current liabilities
D.total long term liabilities

18) Which of the following is the best definition of a current liability?

A. An obligation payable within one year
B.An obligation payable within one year of the balance sheet date.
C.An obligation payable within one year or within the normal operating cycle, whichever is longer.
D.An obligation expected to be satisfied with current assets or by the creation of other current liabilities.