Financial Statements Cash Flow and Taxes MCQ (Multiple Choice Questions) PDF - 18

MCQ 86: The purchase cost of assets over its useful life is classified as

1. appreciation
2. depreciation
3. appreciated assets
4. appreciated liabilities

MCQ 87: If the future return on common stock is 14% and the rate on T-bonds is 5% then the current market risk premium will be

1. 0.19
2. 0.09
3. 9
4. 19

MCQ 88: The difference between actual return on stock and the predicted return is considered as

1. probability error
2. actual error
3. prediction error
4. random error

MCQ 89: The process of calculating future value of money from the present value is classified as

1. compounding
2. discounting
3. money value
4. stock value

MCQ 90: The type of basic financial statements consist of

1. balance sheet and income statement
2. statement of retained earnings
3. statement of cash flows
4. all of the above