This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 12 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. . Long term fund sources are ..... A) Retained earnings. B) Debentures. C) Share capital. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. A schedule of how much consumers are willing and able to buy at a price A) Needs. B) Wants. C) Supply. D) Demand. Show Answer Correct Answer: D) Demand. 3. It is possible that the company has profits but its cash flow is negative. A) False. B) True. Show Answer Correct Answer: B) True. 4. Treasurer performs the functions of which of the following functions: A) Credit management. B) Cash management. C) Procurement of essential funds. D) All of these. Show Answer Correct Answer: D) All of these. 5. Capital budgeting: A) Involves evaluating investment opportunities to determine which projects will generate the highest return on investment. B) Helps businesses make informed financial decisions. C) Both of the above. D) Neither of the above. Show Answer Correct Answer: A) Involves evaluating investment opportunities to determine which projects will generate the highest return on investment. 6. What is NOT a benefit of good credit A) Getting approved for loans. B) Discounts. C) Cash back. D) Airline miles. E) High interest rates on loans. Show Answer Correct Answer: E) High interest rates on loans. 7. Current assets include A) Land. B) Building. C) Inventory. D) Furniture. Show Answer Correct Answer: C) Inventory. 8. Susan packages cotton candy at the fair. If she can package 400 packages in 8 hours, what is her hourly production rate? A) 46. B) 50. C) 52. D) 48. Show Answer Correct Answer: B) 50. 9. All transactions including deposits, checks, debit card purchases, additional fees, and ATM use should be recorded here immediately after completion. A) Reconciling. B) Deposit Slip. C) Checking Account. D) Check Register. Show Answer Correct Answer: D) Check Register. 10. Which of these is not a type of financial bonds A) Corporate. B) Government. C) Bail. D) Municipal. E) Mortgage. Show Answer Correct Answer: C) Bail. 11. Which of the following is NOT a finance function in financial management? A) Sales. B) Financing. C) Dividend. D) Investment. Show Answer Correct Answer: A) Sales. 12. The Debt-to-Equity ratio is an indicator of: A) The company's operational efficiency. B) The company's liquidity. C) The company's financial leverage. D) The company's profitability. Show Answer Correct Answer: C) The company's financial leverage. 13. Which of the following is a duty of a financial manager in a business firm? A) Raising financial resources. B) Developing marketing plans. C) Controlling the stock price. D) Auditing financial records. Show Answer Correct Answer: A) Raising financial resources. 14. Which of the following is an example of a current asset? A) Land. B) Machinery. C) Building. D) Accounts receivable. Show Answer Correct Answer: D) Accounts receivable. 15. What is the formula to calculate the return on investment (ROI)? A) ROI = Net Income / Total Assets. B) ROI = Net Income / Shareholder Equity. C) ROI = Earnings Before Interest and Taxes (EBIT) / Total Assets. D) ROI = Earnings Before Interest and Taxes (EBIT) / Shareholder Equity. Show Answer Correct Answer: A) ROI = Net Income / Total Assets. 16. Which of the followings is NOT the roles of financial manager? A) Forecasting and Planning. B) Deal with financial market. C) Financing decision. D) Advertise the product. Show Answer Correct Answer: D) Advertise the product. 17. Non-spontaneous financing can be divided into: A) Security loan and permanent loan. B) Temporary loan and permanent loan. C) Secured loan and unsecured loan. D) Long-term loan and immediate loan. Show Answer Correct Answer: C) Secured loan and unsecured loan. 18. A soda costs $ 1.75. Tax is 6.25%. Find the amount of tax for the soda. A) .11. B) .10. C) .12. D) .13. Show Answer Correct Answer: A) .11. 19. What is NOT a major disadvantage of a bond? A) Bonds pay out lower returns than stocks. B) Companies can default on your bonds. C) Hold the bond to maturity and get all your principal back. D) Bond yields can fall. Show Answer Correct Answer: C) Hold the bond to maturity and get all your principal back. 20. What are the four key finance functions in financial management? A) Marketing, Sales, Production, Human Resources. B) Investment, Financing, Liquidity, Dividend. C) Investment, Profit, Capital, Liabilities. D) Budgeting, Forecasting, Accounting, Auditing. Show Answer Correct Answer: B) Investment, Financing, Liquidity, Dividend. 21. What is the cost of capital? A) Cost of the company funds. B) Cost of the products or services of the company. C) Cost of capital investment in the company. D) Cumulative calculation of the capital structure. Show Answer Correct Answer: A) Cost of the company funds. 22. Retained earnings falls under ..... A) Investment decision. B) Liquidity decision. C) Financing decision. D) Dividend decision. Show Answer Correct Answer: D) Dividend decision. 23. What are the three primary pro forma financial statements in a financial plan? A) Sales of fixed assets, reduction of working capital, account receivable. B) Cash flow statement, income statement, balance sheet. C) Start-up capital, venture capital, risk capital. D) Debt financing, equity financing, internal funds. Show Answer Correct Answer: B) Cash flow statement, income statement, balance sheet. 24. Debt Ratio can be computed by dividing the? A) Total Liabilities/Total Shareholder's Equity. B) Total Liabilities/Total Assets. C) Total Assets/Total Liabilities. D) Total Liabilities/Average Total Assets. Show Answer Correct Answer: B) Total Liabilities/Total Assets. 25. Fixed cost per unit..... A) Not remains constant. B) Does not change with volume of production. C) Changes according to volume of production. D) Be flexible according to the rate of interest. Show Answer Correct Answer: C) Changes according to volume of production. 26. Taxes are a governmental fee that ..... people to pay in order to live and work in their state and the USA. A) Required. B) Not Required. C) Optional. D) None of above. Show Answer Correct Answer: A) Required. 27. The Fisher Effect tells us that the true nominal rate is actually made up of three components. These three components are ..... A) The nominal rate, the real rate, and the inflation rate. B) The real rate, the inflation rate, and the product of the real rate and the nominal rate. C) The real rate, the inflation rate, and the product of the real rate and inflation. D) The real rate and the product of the real rate and inflation. Show Answer Correct Answer: C) The real rate, the inflation rate, and the product of the real rate and inflation. 28. In the paint industry, various raw materials are mixed in different proportions with petroleum for manufacturing different kinds of paints. One specific raw material is not readily and regularly available to the paint manufacturing companies. Bonler Paints Company is also facing this problem and because of this there is a time lag between placing the order and the actual receipt of the material. But, once it receives the raw materials, it takes less time in converting it into finished goods.Identify the factor affecting the working capital requirements of this industry. A) Availability of Raw Material. B) Production cycle. C) Nature of business. D) All of the above. Show Answer Correct Answer: D) All of the above. 29. X ltd issues Rs. 50, 000 8% debentures at a discount of 5%. The tax rate is 50% the cost of debt capital is ..... A) 4%. B) 4.2%. C) 5%. D) 4.6%. Show Answer Correct Answer: B) 4.2%. 30. High operating leverage indicates a company has A) High fixed cost. B) Low variable cost. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. ← 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