Time Value of Money MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Time Value of Money, a fundamental topic in the field of Financial Management and Financial Markets. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Time Value of Money MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Time Value of Money mcq questions that explore various aspects of Time Value of Money problems. Each MCQ is crafted to challenge your understanding of Time Value of Money principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Financial Management and Financial Markets tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Time Value of Money MCQs are your pathway to success in mastering this essential Financial Management and Financial Markets topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Time Value of Money. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Time Value of Money knowledge to the test? Let's get started with our carefully curated MCQs!

Time Value of Money MCQs | Page 2 of 9

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Q11.
The securities with less predictable prices and have longer maturity time is considered as
Discuss
Answer: (d).short-term investments
Q12.
The number of shares outstanding if it is divided by net income for using to calculate
Discuss
Answer: (a).earnings per share
Q13.
The purchase cost of assets over its useful life is classified as
Discuss
Answer: (b).depreciation
Q14.
The process of calculating future value of money from the present value is classified as
Discuss
Answer: (a).compounding
Discuss
Answer: (d).all of the above
Q16.
If the common shares outstanding are 50,000,000 and book value per share is $19.92 then the total common equity will be
Discuss
Answer: (a).996000000
Q17.
An income available for shareholders after deducting expenses and taxes from revenues is classified as
Discuss
Answer: (a).net income
Q18.
The security present value is $100 and the future value is $150 after 10 years and value of 'I = interest rate' will be
Discuss
Answer: (a).0.0414
Q19.
The noncash revenues and noncash charges if it subtracted from net income is equal to
Discuss
Answer: (c).net cash flow
Q20.
An information uses by the investors for expecting future earnings is all recorded in
Discuss
Answer: (b).annual report
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