This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a commonly used method to collect payments on past due accounts? A) Sending notices. B) Employing a collection agency. C) Taking legal action. D) Determining the applicant's credit worthiness. Show Answer Correct Answer: D) Determining the applicant's credit worthiness. 2. How many percentages should a person save from their monthly income? How many hundredths should a person save from his monthly salary? A) 5%. B) 8%. C) 10%. D) 20%. Show Answer Correct Answer: C) 10%. 3. What best defines a budget? A) A plan people usually don't follow. B) Simply a good thing to have. C) A plan for earning and spending money. D) None of above. Show Answer Correct Answer: C) A plan for earning and spending money. 4. Who is the financial manager of VNM Joint Stock Company? A) Ms. Nguyen Thi Phuong. B) Mr. Le Thanh Liem. C) Ms. Mai Kieu Link. D) Mr. Vinh Tran. Show Answer Correct Answer: B) Mr. Le Thanh Liem. 5. In financial analysis, what does the term "working capital" refer to? A) Total assets minus total liabilities. B) Current assets minus current liabilities. C) Long-term assets. D) Revenue minus expenses. Show Answer Correct Answer: B) Current assets minus current liabilities. 6. Financial institution that gathers savings, paying interest or dividends to savers. A) Rural Banks. B) Commercial Banks. C) Savings Banks. D) Thrift Banks. Show Answer Correct Answer: C) Savings Banks. 7. An investment is indifferent when: A) The NPV to all capital providers is equal to the weighted average cost of capital. B) The NPV to all equity providers is equal to the cost of equity. C) Equity IRR is equal to the cost of equity. D) Equity IRR is equal to the weighted average cost of capital. Show Answer Correct Answer: C) Equity IRR is equal to the cost of equity. 8. ..... is at the heart of corporate finance, because it is concerned with making the best choices about project selection. A) Capital structure budgeting. B) Capital budgeting. C) Capital structure. D) Short-term budgeting. Show Answer Correct Answer: B) Capital budgeting. 9. How to calculate Gross Profit margin? A) Gross Profit / Net. B) Gross Profit / revenue. C) COGS (COGS) / revenue (income). D) Sales / Gross Profit. Show Answer Correct Answer: B) Gross Profit / revenue. 10. What is interest rate? A) A percent that is added to your income. B) A percent that is paid on money in a bank account or money owed. C) A percent that is taken out of your income. D) None of above. Show Answer Correct Answer: B) A percent that is paid on money in a bank account or money owed. 11. Bond backed by the various assets of the corporation is? A) Debenture. B) Mortgage. C) Convertible. D) Registered. Show Answer Correct Answer: B) Mortgage. 12. What does the term 'dividend decision' in financial management refer to? A) Managing the day-to-day expenses of the company. B) Determining which investments to make. C) Deciding on the company's capital structure. D) Deciding how much of the earnings to distribute to shareholders. Show Answer Correct Answer: D) Deciding how much of the earnings to distribute to shareholders. 13. What does internal source mean? A) A source from within the business. B) A source from outside the business. C) A source taken from international funding. D) A source from a specific investor. Show Answer Correct Answer: A) A source from within the business. 14. The trend of harmonization is A) A trend in which international companies try to use International Financial Reporting Standards (IFRS) in public company accounting. B) A trend in which international companies try to use Domestic Financial Reporting Standards (DFRS) in public company accounting. C) A trend in which international companies try to reduce transparency in public company accounting. D) A trend in which international companies try to limit transparency in public company accounting. Show Answer Correct Answer: A) A trend in which international companies try to use International Financial Reporting Standards (IFRS) in public company accounting. 15. The n i approach assumed A) Ke is to be same and constant. B) There are no taxes. C) K0 falls as the degree of leverage is increased. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. There are three types of leverage that a firm may use, except ..... A) Degree of Financial Leverage. B) Degree of Investing Leverage. C) Degree of Combined Leverage. D) Degree of Operating Leverage. Show Answer Correct Answer: B) Degree of Investing Leverage. 17. According to Net Income Approach a firm will have maximum value when the ..... minimum A) WACC. B) Equity. C) Debt. D) Cost of Equity. Show Answer Correct Answer: A) WACC. 18. What is the main responsibility of financial managers? A) Deciding how to invest the firm's funds. B) To review and verify the accuracy of financial records and ensure that companies comply with tax laws. C) Monitor organizations' costs and create reports for budgetary, pricing, and cost analysis purposes. D) Take, care of all financial matters within a company, like keeping and interpreting financial records. Show Answer Correct Answer: A) Deciding how to invest the firm's funds. 19. What does FICA stand for A) Financial Independent Corporation of America. B) Federal Insurance Committee Association. C) Federal Income Collecting Association. D) Federal Income communications act. E) Federal Insurance Contributions Act. Show Answer Correct Answer: E) Federal Insurance Contributions Act. 20. The maximum amount of charges allwoed to an account. A) Annual Percentage Rate (APR). B) Credit limit. C) Variable-rate APR. D) Annual fee. Show Answer Correct Answer: B) Credit limit. 21. Which of these is not a way to cut expenses? A) Lower discretionary expenses. B) Join hustlers university. C) Create a budget. D) Open a savings account. E) Pay of debt. Show Answer Correct Answer: B) Join hustlers university. 22. If an SME's quick ratio is significantly lower than its current ratio, what might be a potential concern? A) Effective receivables management. B) Strong solvency position. C) Efficient inventory management. D) High liquidity risk. Show Answer Correct Answer: D) High liquidity risk. 23. Permanent working capital is funded using A) Commercial Papers. B) Long-term funds. C) Bank Overdraft. D) Working capital loans. Show Answer Correct Answer: B) Long-term funds. 24. What do credit cards NOT offer? A) Cash back. B) Low APR. C) Gas. D) Merchandice (Disney). E) Buy one Get one free. Show Answer Correct Answer: E) Buy one Get one free. 25. The functions of financial management are as follows: A) Planning, budgeting, controlling, auditing & reporting. B) Planning, budgeting, monitoring, reporting. C) Planning, buying, controliing, reporting. D) Planning, budgeting, monitoring, reporting. Show Answer Correct Answer: A) Planning, budgeting, controlling, auditing & reporting. 26. A company selling a bond is ..... money. A) Lending. B) Borrowing. C) Taking. D) Reinvesting. Show Answer Correct Answer: B) Borrowing. 27. The financial statements of a business enterprise include funds flow statement. A) True. B) False. C) I don't know. D) None of above. Show Answer Correct Answer: B) False. 28. A share that you cannot redeem during the lifetime of the business? A) Debenture Share. B) Preference Share. C) Equity Share. D) None of above. Show Answer Correct Answer: C) Equity Share. 29. Which TWO of the following statements are correct?1. Financial accounting is concerned with providing financial information to aid day to day control and decision making.2. Management accounting is concerned with future analysis of costing data to assist with decision making.3. Financial accounting is concerned with providing information about the results of past plans and decisions.4. Financial strategy is concerned with raising finance and allocating resources to achieve corporate objectives. A) 1, 2. B) 2, 3. C) 3, 4. D) 1, 4. Show Answer Correct Answer: D) 1, 4. 30. FW Co is expecting a receipt of $ 10, 000 (in real terms) in 1 year's time.If FW Co expects inflation to increase, and receipts are expected to rise in line with the general rate of inflation, what impact will this have on the present value of that receipt? A) Cannot say. B) Increase. C) Reduce. D) Nil. Show Answer Correct Answer: D) Nil. ← PreviousNext →Related QuizzesManagement QuizzesFinance QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books