This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 13 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The interest rate that may be charged after a credit card account is opened. A) Variable-rate APR. B) Annual fee. C) Introductory rate. D) Penalty APR. Show Answer Correct Answer: C) Introductory rate. 2. To make a profit, commercial banks ..... on the money that they lend than the interest they pay on savings accounts. A) Pay less interest. B) Charge more interest. C) Pay more interest. D) Charge less interest. Show Answer Correct Answer: B) Charge more interest. 3. Markets in which participants agree today to buy orsell an asset at some future date. A) Spot markets. B) Money markets. C) Capital markets. D) Futures market. Show Answer Correct Answer: D) Futures market. 4. The following shows part of Mr Jason's financial management process.To save for emergency fundTo buy a laptopTo buy a terrace house in 10 years by paying RM60 000 as a down payment.What step in the financial management process did Mr Jason take? A) Evaluating financial status. B) Creating a financial plan. C) Carrying out financial plan. D) Setting financial goals. Show Answer Correct Answer: D) Setting financial goals. 5. You buy a copy of your favorite movie for $ 23.45. You give the clerk $ 25. How much change will you receive? A) $ 1.50. B) $ 1.55. C) $ 1.56. D) .95. Show Answer Correct Answer: B) $ 1.55. 6. Short-term solvency is another term for A) Stability. B) Profitability. C) Marketability. D) Liquidity. Show Answer Correct Answer: D) Liquidity. 7. Objectives of financial management A) Profit maximization. B) Wealth maximization. C) Return maximization. D) All of these. Show Answer Correct Answer: D) All of these. 8. Sign the back of this card in the authorized signature box. A) Deposit Slip. B) Check. C) Debit Card. D) Check Register. Show Answer Correct Answer: C) Debit Card. 9. Securities exchange market and over-the-counter (OTC) market such as NASDAQ, London Stock Exchange and New York Stock Exchange are the example of ..... for Bursa Malaysia issuer. A) Secondary market. B) Common stock. C) Initial public offering. D) Preferred stock. Show Answer Correct Answer: A) Secondary market. 10. The objectives of financial management are the following; Except ..... A) To ensure a regular and adequate supply of funds to the concern. B) To ensure adequate returns to the shareholders which will depend upon the earning capacity, the market price of the share, expectations of the shareholders. C) To ensure safety on investment, i.e, funds should be invested in safe ventures so that an adequate rate of return can be achieved. D) To ensure optimum funds utilization. Once the funds are procured, they should be utilized in the minimum possible way at the high cost. Show Answer Correct Answer: D) To ensure optimum funds utilization. Once the funds are procured, they should be utilized in the minimum possible way at the high cost. 11. Financial planning and budgeting: A) Helps businesses set financial goals, allocate resources, and create budgets to guide their operations. B) Ensures that a company has the resources it needs to achieve its goals. C) Both of the above. D) Neither of the above. Show Answer Correct Answer: A) Helps businesses set financial goals, allocate resources, and create budgets to guide their operations. 12. Q6) What external factor can influence an individual's financial plan in terms of investment decisions? A) Personal hobbies. B) Spending habits. C) Family traditions. D) Legislative changes. Show Answer Correct Answer: D) Legislative changes. 13. Marco, Makenna, and Zach are studying for their financial management exam. They are discussing the concept of net present value (NPV) in investment decisions. Can you explain it to them? A) Net present value is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. B) Net present value is the total amount of a company's equity. C) Net present value is not a concept in financial management. D) Net present value is the total amount of fixed costs that a company has. Show Answer Correct Answer: A) Net present value is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. 14. Certificate of debt issued sold by institution, company or bythe government as a means of borrowing long-term funds A) Capital. B) Capital allocation. C) Stock. D) Bonds. Show Answer Correct Answer: D) Bonds. 15. The Quick Ratio excludes which asset from the calculation? A) Inventory. B) Prepaid Expenses. C) Accounts Receivable. D) Cash. Show Answer Correct Answer: A) Inventory. 16. The net profits decision has to be made by the finance manager. This can be done in two ways:Dividend declaration or Retained profits A) Disposal of surplus. B) Choice of sources of funds. C) Investment of funds. D) Management of cash. Show Answer Correct Answer: A) Disposal of surplus. 17. If actual achievements do not match thestandards, management can do: A) Actual performance can be improved to reach the standards,. B) Strategiescan be revised. C) Performance standards can be lowered. D) All of above. Show Answer Correct Answer: D) All of above. 18. An annuity is a financial product that pays out a ..... stream of payments to an individual, and these financial products are primarily used as an income stream for retirees. A) Large. B) Small. C) Fixed. D) Variable. Show Answer Correct Answer: C) Fixed. 19. What is NOT included in operating expenses is A) General & admin costs. B) Interest costs. C) Sales Costs. D) Marketing Costs. Show Answer Correct Answer: B) Interest costs. 20. ..... is the main form used to file annual income tax return A) 1099-MISC. B) W-2. C) 1009-DIV. D) 1040. E) 1009-INT. Show Answer Correct Answer: D) 1040. 21. This statement presents the result of the firm's operation or performance for a given time A) Statement of Financial Position. B) Income Statement. C) Statement of Changes in Equity. D) Statement of Comprehensive Income. Show Answer Correct Answer: B) Income Statement. 22. Of the following, which is NOT one of the four main areas of finance? A) International finance. B) Corporate finance. C) All are considered main areas of finance. D) . Investments. Show Answer Correct Answer: C) All are considered main areas of finance. 23. If fixed operating cost is high, a firm should prefer A) (a) Debt. B) (b) Equity. C) C) Both (a) and (b). D) (d) None of the above. Show Answer Correct Answer: B) (b) Equity. 24. PT Asia Inc is considering a project that has an initial after-tax outlay or after-tax cost of $ 350, 000. The respective future cash inflows from its five-year project for years 1 through 5 are $ 75, 000 each year. PT Asia Inc expects an additional cash flow of $ 50, 000 in the fifth year. The firm uses the net present value method and has a discount rate of 10%. Will PT Asia Inc accept the project? A) PT Asia Inc rejects the project because it has an NPV less than $ 10. B) PT Asia Inc rejects the project because it has an NPV less than $ 0. C) PT Asia Inc accepts the project because it has an NPV greater than $ 5, 000. D) PT Asia Inc accepts the project because it has an NPV greater than $ 18, 000. Show Answer Correct Answer: B) PT Asia Inc rejects the project because it has an NPV less than $ 0. 25. Receipts from contracts held for dealing and trading purposes A) Operating Activities. B) Financing Activities. C) Investing Activities. D) None of above. Show Answer Correct Answer: A) Operating Activities. 26. Its function is to provide quantitative information primarily, financial in nature about economic entities that is intended to be useful in economic decisions. A) Finance. B) Financial Management. C) Accounting Principles. D) Accounting. Show Answer Correct Answer: D) Accounting. 27. The cost of equity share or debt is known as ..... A) The specific cost of capital. B) The related cost of capital. C) The burden on the shareholder. D) None of the above. Show Answer Correct Answer: A) The specific cost of capital. 28. Sue works a 53 hour work week (40 is a regular week), and makes $ 17.50 per hour-what is her gross pay with her overtime? A) $ 700.00. B) $ 1, 041.25. C) $ 341.25. D) $ 1, 200.25. Show Answer Correct Answer: B) $ 1, 041.25. 29. .... is a motive of holding cash? A) Transaction motive. B) Precaution motive. C) Capital investment. D) None of above. Show Answer Correct Answer: B) Precaution motive. 30. ..... is the time span between acquisition of goods and realisation of sale proceeds. A) Payback period. B) Operating cycle. C) Account receivable period. D) Working Capital. Show Answer Correct Answer: B) Operating cycle. ← 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