Microfinance MCQs 2026

Financial statement analysis focus 9: examining revenue recognition policy requires the analyst to

1. A rely solely on headline EPS without reading notes ✓
2. B ignore accounting policy section entirely ✓
3. C assess timing and criteria for recognizing sales under applicable standards ✓
4. D use only social media sentiment ✓

Financial statement analysis focus 14: examining capitalization vs expensing of costs requires the analyst to

1. A rely solely on headline EPS without reading notes ✓
2. B ignore accounting policy section entirely ✓
3. C use only social media sentiment ✓
4. D determine if costs meet criteria for asset recognition ✓

Financial statement analysis focus 40: examining contingent liabilities disclosure requires the analyst to

1. A read notes for possible obligations from past events ✓
2. B rely solely on headline EPS without reading notes ✓
3. C ignore accounting policy section entirely ✓
4. D use only social media sentiment ✓

Financial statement analysis focus 53: examining provision for doubtful debts requires the analyst to

1. A rely solely on headline EPS without reading notes ✓
2. B ignore accounting policy section entirely ✓
3. C use only social media sentiment ✓
4. D judge adequacy of allowance against aging receivables ✓

Financial statement analysis focus 55: examining related party transactions requires the analyst to

1. A rely solely on headline EPS without reading notes ✓
2. B ignore accounting policy section entirely ✓
3. C use only social media sentiment ✓
4. D verify arm-length terms and aggregate exposure in notes ✓

Financial statement analysis focus 60: examining impairment of fixed assets requires the analyst to

1. A rely solely on headline EPS without reading notes ✓
2. B ignore accounting policy section entirely ✓
3. C use only social media sentiment ✓
4. D review triggers and recoverable amount testing assumptions ✓

Income statement shows

1. A assets and liabilities at a date ✓
2. B revenues, expenses, and profit over a period ✓
3. C cash flows only ✓
4. D shareholder registry only ✓

Balance sheet presents

1. A financial position at a specific date ✓
2. B only revenues for the year ✓
3. C only market share data ✓
4. D only employee attendance ✓

Cash flow statement reconciles

1. A only inventory levels ✓
2. B net income to cash from operating, investing, and financing activities ✓
3. C only CEO salary ✓
4. D only advertising clicks ✓

Accrual accounting records revenue when

1. A cash is received only ✓
2. B invoice is destroyed ✓
3. C audit completes only ✓
4. D earned not necessarily when cash received ✓

Depreciation in financial statements

1. A measures market value change daily ✓
2. B equals cash outflow each year ✓
3. C allocates historical cost of tangible assets over useful life ✓
4. D is identical to amortization of goodwill always ✓

EBITDA approximates

1. A net cash flow exactly ✓
2. B operating performance before interest, taxes, depreciation, and amortization ✓
3. C shareholders equity ✓
4. D total liabilities ✓

Footnotes to financial statements provide

1. A only stock price chart ✓
2. B only HR policy manual ✓
3. C accounting policies and contingent liability details ✓
4. D only product photos ✓

Auditor unqualified opinion indicates

1. A financial statements present fairly in all material respects ✓
2. B company is bankrupt ✓
3. C no further review needed ever ✓
4. D zero errors exist in all entries ✓

Vertical analysis of income statement expresses each item as

1. A percentage of total assets ✓
2. B absolute rupees only always ✓
3. C percentage of net sales ✓
4. D percentage of GDP ✓

Horizontal analysis compares

1. A only one day snapshot ✓
2. B financial statement items across multiple periods ✓
3. C only competitor logos ✓
4. D only dividend dates ✓

Financial statement analysis focus 3: examining depreciation schedule change requires the analyst to

1. A rely solely on headline EPS without reading notes ✓
2. B ignore accounting policy section entirely ✓
3. C use only social media sentiment ✓
4. D evaluate useful life and method impact on reported profit ✓

Financial statement analysis focus 26: examining inventory valuation method requires the analyst to

1. A rely solely on headline EPS without reading notes ✓
2. B compare FIFO, weighted average, or NRV lower of cost or market ✓
3. C ignore accounting policy section entirely ✓
4. D use only social media sentiment ✓

Microfinance case 38: group loan Rs 174,500 with 5 members under joint liability. Equal share of total exposure per member is Rs

1. A 174,500 ✓
2. B 34,900 ✓
3. C 0 ✓
4. D 872,500 ✓

Microfinance case 39: group loan Rs 180,500 with 6 members under joint liability. Equal share of total exposure per member is Rs

1. A 180,500 ✓
2. B 0 ✓
3. C 1,083,000 ✓
4. D 30,083 ✓

Microfinance case 40: group loan Rs 186,500 with 7 members under joint liability. Equal share of total exposure per member is Rs

1. A 26,643 ✓
2. B 186,500 ✓
3. C 0 ✓
4. D 1,305,500 ✓

Microfinance case 41: group loan Rs 192,500 with 8 members under joint liability. Equal share of total exposure per member is Rs

1. A 192,500 ✓
2. B 0 ✓
3. C 1,540,000 ✓
4. D 24,063 ✓

Microfinance case 42: group loan Rs 198,500 with 9 members under joint liability. Equal share of total exposure per member is Rs

1. A 198,500 ✓
2. B 22,056 ✓
3. C 0 ✓
4. D 1,786,500 ✓

Microfinance case 43: group loan Rs 187,000 with 4 members under joint liability. Equal share of total exposure per member is Rs

1. A 187,000 ✓
2. B 0 ✓
3. C 748,000 ✓
4. D 46,750 ✓

Microfinance case 44: group loan Rs 193,000 with 5 members under joint liability. Equal share of total exposure per member is Rs

1. A 193,000 ✓
2. B 0 ✓
3. C 38,600 ✓
4. D 965,000 ✓

Microfinance case 37: group loan Rs 168,500 with 4 members under joint liability. Equal share of total exposure per member is Rs

1. A 168,500 ✓
2. B 0 ✓
3. C 674,000 ✓
4. D 42,125 ✓

Microfinance case 21: group loan Rs 125,000 with 6 members under joint liability. Equal share of total exposure per member is Rs

1. A 125,000 ✓
2. B 0 ✓
3. C 20,833 ✓
4. D 750,000 ✓

Microfinance case 22: group loan Rs 113,500 with 7 members under joint liability. Equal share of total exposure per member is Rs

1. A 113,500 ✓
2. B 0 ✓
3. C 794,500 ✓
4. D 16,214 ✓

Microfinance case 23: group loan Rs 119,500 with 8 members under joint liability. Equal share of total exposure per member is Rs

1. A 119,500 ✓
2. B 0 ✓
3. C 14,938 ✓
4. D 956,000 ✓

Microfinance case 24: group loan Rs 125,500 with 9 members under joint liability. Equal share of total exposure per member is Rs

1. A 125,500 ✓
2. B 0 ✓
3. C 13,944 ✓
4. D 1,129,500 ✓

Microfinance case 25: group loan Rs 131,500 with 4 members under joint liability. Equal share of total exposure per member is Rs

1. A 131,500 ✓
2. B 0 ✓
3. C 526,000 ✓
4. D 32,875 ✓

Microfinance case 26: group loan Rs 137,500 with 5 members under joint liability. Equal share of total exposure per member is Rs

1. A 27,500 ✓
2. B 137,500 ✓
3. C 0 ✓
4. D 687,500 ✓

Microfinance case 27: group loan Rs 143,500 with 6 members under joint liability. Equal share of total exposure per member is Rs

1. A 23,917 ✓
2. B 143,500 ✓
3. C 0 ✓
4. D 861,000 ✓

Microfinance case 28: group loan Rs 149,500 with 7 members under joint liability. Equal share of total exposure per member is Rs

1. A 149,500 ✓
2. B 0 ✓
3. C 21,357 ✓
4. D 1,046,500 ✓

Microfinance case 29: group loan Rs 138,000 with 8 members under joint liability. Equal share of total exposure per member is Rs

1. A 138,000 ✓
2. B 17,250 ✓
3. C 0 ✓
4. D 1,104,000 ✓

Microfinance case 30: group loan Rs 144,000 with 9 members under joint liability. Equal share of total exposure per member is Rs

1. A 16,000 ✓
2. B 144,000 ✓
3. C 0 ✓
4. D 1,296,000 ✓

Microfinance case 31: group loan Rs 150,000 with 4 members under joint liability. Equal share of total exposure per member is Rs

1. A 37,500 ✓
2. B 150,000 ✓
3. C 0 ✓
4. D 600,000 ✓

Microfinance case 32: group loan Rs 156,000 with 5 members under joint liability. Equal share of total exposure per member is Rs

1. A 156,000 ✓
2. B 0 ✓
3. C 31,200 ✓
4. D 780,000 ✓

Microfinance case 33: group loan Rs 162,000 with 6 members under joint liability. Equal share of total exposure per member is Rs

1. A 27,000 ✓
2. B 162,000 ✓
3. C 0 ✓
4. D 972,000 ✓

Microfinance case 34: group loan Rs 168,000 with 7 members under joint liability. Equal share of total exposure per member is Rs

1. A 168,000 ✓
2. B 24,000 ✓
3. C 0 ✓
4. D 1,176,000 ✓

Microfinance case 35: group loan Rs 174,000 with 8 members under joint liability. Equal share of total exposure per member is Rs

1. A 174,000 ✓
2. B 0 ✓
3. C 21,750 ✓
4. D 1,392,000 ✓

Microfinance case 36: group loan Rs 162,500 with 9 members under joint liability. Equal share of total exposure per member is Rs

1. A 162,500 ✓
2. B 18,056 ✓
3. C 0 ✓
4. D 1,462,500 ✓

Microfinance provides

1. A only billion-rupee corporate loans ✓
2. B small financial services to low-income clients excluded from formal banking ✓
3. C only foreign portfolio investment ✓
4. D only government treasury auctions ✓

Grameen-style group lending relies on

1. A social collateral and peer monitoring in borrower groups ✓
2. B luxury asset mortgages only ✓
3. C anonymous offshore accounts ✓
4. D government unlimited guarantees ✓

Khushhali Bank in Pakistan focuses on

1. A investment banking for multinationals only ✓
2. B currency printing operations ✓
3. C PSX market making exclusively ✓
4. D microfinance and financial inclusion ✓

Microfinance interest rates are typically

1. A always zero by law ✓
2. B higher than commercial bank rates due to operational costs and risk ✓
3. C negative interest always ✓
4. D identical to SBP policy rate ✓

Financial inclusion means

1. A only wealthy clients served ✓
2. B access to affordable financial products for all economic segments ✓
3. C cash economy elimination overnight ✓
4. D banning all rural credit ✓

NGO-led microfinance differs from regulated MFI in

1. A using only foreign currency ✓
2. B ignoring all repayment ✓
3. C operating without any clients ✓
4. D governance and deposit-taking permissions ✓

Microfinance case 1: group loan Rs 40,000 with 4 members under joint liability. Equal share of total exposure per member is Rs

1. A 40,000 ✓
2. B 10,000 ✓
3. C 0 ✓
4. D 160,000 ✓

Microfinance case 2: group loan Rs 46,000 with 5 members under joint liability. Equal share of total exposure per member is Rs

1. A 9,200 ✓
2. B 46,000 ✓
3. C 0 ✓
4. D 230,000 ✓

Microfinance case 3: group loan Rs 52,000 with 6 members under joint liability. Equal share of total exposure per member is Rs

1. A 52,000 ✓
2. B 8,667 ✓
3. C 0 ✓
4. D 312,000 ✓

Microfinance case 4: group loan Rs 58,000 with 7 members under joint liability. Equal share of total exposure per member is Rs

1. A 58,000 ✓
2. B 0 ✓
3. C 406,000 ✓
4. D 8,286 ✓

Microfinance case 5: group loan Rs 64,000 with 8 members under joint liability. Equal share of total exposure per member is Rs

1. A 64,000 ✓
2. B 0 ✓
3. C 8,000 ✓
4. D 512,000 ✓

Microfinance case 6: group loan Rs 70,000 with 9 members under joint liability. Equal share of total exposure per member is Rs

1. A 70,000 ✓
2. B 0 ✓
3. C 630,000 ✓
4. D 7,778 ✓

Microfinance case 7: group loan Rs 76,000 with 4 members under joint liability. Equal share of total exposure per member is Rs

1. A 76,000 ✓
2. B 19,000 ✓
3. C 0 ✓
4. D 304,000 ✓

Microfinance case 8: group loan Rs 64,500 with 5 members under joint liability. Equal share of total exposure per member is Rs

1. A 12,900 ✓
2. B 64,500 ✓
3. C 0 ✓
4. D 322,500 ✓

Microfinance case 9: group loan Rs 70,500 with 6 members under joint liability. Equal share of total exposure per member is Rs

1. A 11,750 ✓
2. B 70,500 ✓
3. C 0 ✓
4. D 423,000 ✓

Microfinance case 10: group loan Rs 76,500 with 7 members under joint liability. Equal share of total exposure per member is Rs

1. A 76,500 ✓
2. B 0 ✓
3. C 10,929 ✓
4. D 535,500 ✓

Microfinance case 11: group loan Rs 82,500 with 8 members under joint liability. Equal share of total exposure per member is Rs

1. A 82,500 ✓
2. B 0 ✓
3. C 660,000 ✓
4. D 10,313 ✓

Microfinance case 12: group loan Rs 88,500 with 9 members under joint liability. Equal share of total exposure per member is Rs

1. A 9,833 ✓
2. B 88,500 ✓
3. C 0 ✓
4. D 796,500 ✓

Microfinance case 13: group loan Rs 94,500 with 4 members under joint liability. Equal share of total exposure per member is Rs

1. A 94,500 ✓
2. B 0 ✓
3. C 23,625 ✓
4. D 378,000 ✓

Microfinance case 14: group loan Rs 100,500 with 5 members under joint liability. Equal share of total exposure per member is Rs

1. A 20,100 ✓
2. B 100,500 ✓
3. C 0 ✓
4. D 502,500 ✓

Microfinance case 15: group loan Rs 89,000 with 6 members under joint liability. Equal share of total exposure per member is Rs

1. A 89,000 ✓
2. B 0 ✓
3. C 14,833 ✓
4. D 534,000 ✓

Microfinance case 16: group loan Rs 95,000 with 7 members under joint liability. Equal share of total exposure per member is Rs

1. A 95,000 ✓
2. B 13,571 ✓
3. C 0 ✓
4. D 665,000 ✓

Microfinance case 17: group loan Rs 101,000 with 8 members under joint liability. Equal share of total exposure per member is Rs

1. A 12,625 ✓
2. B 101,000 ✓
3. C 0 ✓
4. D 808,000 ✓

Microfinance case 18: group loan Rs 107,000 with 9 members under joint liability. Equal share of total exposure per member is Rs

1. A 107,000 ✓
2. B 11,889 ✓
3. C 0 ✓
4. D 963,000 ✓

Microfinance case 19: group loan Rs 113,000 with 4 members under joint liability. Equal share of total exposure per member is Rs

1. A 113,000 ✓
2. B 0 ✓
3. C 452,000 ✓
4. D 28,250 ✓

Microfinance case 20: group loan Rs 119,000 with 5 members under joint liability. Equal share of total exposure per member is Rs

1. A 119,000 ✓
2. B 0 ✓
3. C 23,800 ✓
4. D 595,000 ✓