Microfinance MCQs 2026

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

1. Arely solely on headline EPS without reading notes✓
2. Bignore accounting policy section entirely✓
3. Cuse only social media sentiment✓
4. Dreview triggers and recoverable amount testing assumptions✓

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

1. Arely solely on headline EPS without reading notes✓
2. Bignore accounting policy section entirely✓
3. Cuse only social media sentiment✓
4. Dverify arm-length terms and aggregate exposure in notes✓

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

1. Arely solely on headline EPS without reading notes✓
2. Bignore accounting policy section entirely✓
3. Cuse only social media sentiment✓
4. Djudge adequacy of allowance against aging receivables✓

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

1. Aread notes for possible obligations from past events✓
2. Brely solely on headline EPS without reading notes✓
3. Cignore accounting policy section entirely✓
4. Duse only social media sentiment✓

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

1. Arely solely on headline EPS without reading notes✓
2. Bcompare FIFO, weighted average, or NRV lower of cost or market✓
3. Cignore accounting policy section entirely✓
4. Duse only social media sentiment✓

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

1. Arely solely on headline EPS without reading notes✓
2. Bignore accounting policy section entirely✓
3. Cuse only social media sentiment✓
4. Ddetermine if costs meet criteria for asset recognition✓

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

1. Arely solely on headline EPS without reading notes✓
2. Bignore accounting policy section entirely✓
3. Cassess timing and criteria for recognizing sales under applicable standards✓
4. Duse only social media sentiment✓

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

1. Arely solely on headline EPS without reading notes✓
2. Bignore accounting policy section entirely✓
3. Cuse only social media sentiment✓
4. Devaluate useful life and method impact on reported profit✓

Horizontal analysis compares

1. Aonly one day snapshot✓
2. Bfinancial statement items across multiple periods✓
3. Conly competitor logos✓
4. Donly dividend dates✓

Vertical analysis of income statement expresses each item as

1. Apercentage of total assets✓
2. Babsolute rupees only always✓
3. Cpercentage of net sales✓
4. Dpercentage of GDP✓

Auditor unqualified opinion indicates

1. Afinancial statements present fairly in all material respects✓
2. Bcompany is bankrupt✓
3. Cno further review needed ever✓
4. Dzero errors exist in all entries✓

Footnotes to financial statements provide

1. Aonly stock price chart✓
2. Bonly HR policy manual✓
3. Caccounting policies and contingent liability details✓
4. Donly product photos✓

EBITDA approximates

1. Anet cash flow exactly✓
2. Boperating performance before interest, taxes, depreciation, and amortization✓
3. Cshareholders equity✓
4. Dtotal liabilities✓

Depreciation in financial statements

1. Ameasures market value change daily✓
2. Bequals cash outflow each year✓
3. Callocates historical cost of tangible assets over useful life✓
4. Dis identical to amortization of goodwill always✓

Accrual accounting records revenue when

1. Acash is received only✓
2. Binvoice is destroyed✓
3. Caudit completes only✓
4. Dearned not necessarily when cash received✓

Cash flow statement reconciles

1. Aonly inventory levels✓
2. Bnet income to cash from operating, investing, and financing activities✓
3. Conly CEO salary✓
4. Donly advertising clicks✓

Balance sheet presents

1. Afinancial position at a specific date✓
2. Bonly revenues for the year✓
3. Conly market share data✓
4. Donly employee attendance✓

Income statement shows

1. Aassets and liabilities at a date✓
2. Brevenues, expenses, and profit over a period✓
3. Ccash flows only✓
4. Dshareholder registry only✓

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

1. A70,000✓
2. B0✓
3. C630,000✓
4. D7,778✓

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

1. A119,000✓
2. B0✓
3. C23,800✓
4. D595,000✓

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

1. A113,000✓
2. B0✓
3. C452,000✓
4. D28,250✓

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

1. A107,000✓
2. B11,889✓
3. C0✓
4. D963,000✓

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

1. A12,625✓
2. B101,000✓
3. C0✓
4. D808,000✓

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

1. A95,000✓
2. B13,571✓
3. C0✓
4. D665,000✓

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

1. A89,000✓
2. B0✓
3. C14,833✓
4. D534,000✓

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

1. A40,000✓
2. B10,000✓
3. C0✓
4. D160,000✓

NGO-led microfinance differs from regulated MFI in

1. Ausing only foreign currency✓
2. Bignoring all repayment✓
3. Coperating without any clients✓
4. Dgovernance and deposit-taking permissions✓

Financial inclusion means

1. Aonly wealthy clients served✓
2. Baccess to affordable financial products for all economic segments✓
3. Ccash economy elimination overnight✓
4. Dbanning all rural credit✓

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

1. A11,750✓
2. B70,500✓
3. C0✓
4. D423,000✓

Microfinance interest rates are typically

1. Aalways zero by law✓
2. Bhigher than commercial bank rates due to operational costs and risk✓
3. Cnegative interest always✓
4. Didentical to SBP policy rate✓

Khushhali Bank in Pakistan focuses on

1. Ainvestment banking for multinationals only✓
2. Bcurrency printing operations✓
3. CPSX market making exclusively✓
4. Dmicrofinance and financial inclusion✓

Grameen-style group lending relies on

1. Asocial collateral and peer monitoring in borrower groups✓
2. Bluxury asset mortgages only✓
3. Canonymous offshore accounts✓
4. Dgovernment unlimited guarantees✓

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

1. A20,100✓
2. B100,500✓
3. C0✓
4. D502,500✓

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

1. A94,500✓
2. B0✓
3. C23,625✓
4. D378,000✓

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

1. A76,000✓
2. B19,000✓
3. C0✓
4. D304,000✓

Microfinance provides

1. Aonly billion-rupee corporate loans✓
2. Bsmall financial services to low-income clients excluded from formal banking✓
3. Conly foreign portfolio investment✓
4. Donly government treasury auctions✓

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

1. A76,500✓
2. B0✓
3. C10,929✓
4. D535,500✓

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

1. A82,500✓
2. B0✓
3. C660,000✓
4. D10,313✓

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

1. A12,900✓
2. B64,500✓
3. C0✓
4. D322,500✓

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

1. A9,833✓
2. B88,500✓
3. C0✓
4. D796,500✓

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

1. A64,000✓
2. B0✓
3. C8,000✓
4. D512,000✓

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

1. A58,000✓
2. B0✓
3. C406,000✓
4. D8,286✓

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

1. A52,000✓
2. B8,667✓
3. C0✓
4. D312,000✓

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

1. A9,200✓
2. B46,000✓
3. C0✓
4. D230,000✓

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

1. A125,500✓
2. B0✓
3. C13,944✓
4. D1,129,500✓

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

1. A119,500✓
2. B0✓
3. C14,938✓
4. D956,000✓

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

1. A113,500✓
2. B0✓
3. C794,500✓
4. D16,214✓

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

1. A125,000✓
2. B0✓
3. C20,833✓
4. D750,000✓

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

1. A193,000✓
2. B0✓
3. C38,600✓
4. D965,000✓

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

1. A138,000✓
2. B17,250✓
3. C0✓
4. D1,104,000✓

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

1. A16,000✓
2. B144,000✓
3. C0✓
4. D1,296,000✓

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

1. A37,500✓
2. B150,000✓
3. C0✓
4. D600,000✓

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

1. A156,000✓
2. B0✓
3. C31,200✓
4. D780,000✓

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

1. A27,000✓
2. B162,000✓
3. C0✓
4. D972,000✓

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

1. A168,000✓
2. B24,000✓
3. C0✓
4. D1,176,000✓

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

1. A174,000✓
2. B0✓
3. C21,750✓
4. D1,392,000✓

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

1. A162,500✓
2. B18,056✓
3. C0✓
4. D1,462,500✓

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

1. A168,500✓
2. B0✓
3. C674,000✓
4. D42,125✓

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

1. A174,500✓
2. B34,900✓
3. C0✓
4. D872,500✓

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

1. A180,500✓
2. B0✓
3. C1,083,000✓
4. D30,083✓

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

1. A26,643✓
2. B186,500✓
3. C0✓
4. D1,305,500✓

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

1. A192,500✓
2. B0✓
3. C1,540,000✓
4. D24,063✓

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

1. A198,500✓
2. B22,056✓
3. C0✓
4. D1,786,500✓

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

1. A149,500✓
2. B0✓
3. C21,357✓
4. D1,046,500✓

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

1. A23,917✓
2. B143,500✓
3. C0✓
4. D861,000✓

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

1. A187,000✓
2. B0✓
3. C748,000✓
4. D46,750✓

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

1. A27,500✓
2. B137,500✓
3. C0✓
4. D687,500✓

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

1. A131,500✓
2. B0✓
3. C526,000✓
4. D32,875✓