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 3 of 9

Q21.
In calculation of net cash flow, the deferred tax payments are classified as
Discuss
Answer: (b).non-cash charges
Q22.
The land, buildings, and factory fixed equipment are classified as
Discuss
Answer: (a).tangible asset
Q23.
The rate of return that an investment provides its investor is classified as
Discuss
Answer: (b).internal rate of return
Q24.
The method of inventory recording gives lower cost of goods sold in the income statement is classified as
Discuss
Answer: (d).first in first out
Q25.
The type of interest rates consist of
Discuss
Answer: (d).all of the above
Q26.
The future value of interest if it is calculated once a year is classified as
Discuss
Answer: (b).annual compounding
Q27.
An interest rate which is paid by the money borrower and charged by lender is considered as
Discuss
Answer: (b).periodic rate
Q28.
In the calculation of time value of money, the 'PMT' represents
Discuss
Answer: (b).payment
Q29.
The left side of balance sheet states the
Discuss
Answer: (b).liabilities
Q30.
The intangible assets such as copyrights, trademarks and patents are applicable for
Discuss
Answer: (b).amortization
Page 3 of 9