This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 14 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. To buy securities, i.e., share or debentures, it is compulsory to open A) C) Fixed Deposit Account. B) D) Recurring Account. C) (b) Demat Account. D) (a) Current Account. Show Answer Correct Answer: C) (b) Demat Account. 2. What is the primary goal of finance? A) To minimize risks. B) To maximize liquidity. C) To maximize profit. D) None of above. Show Answer Correct Answer: C) To maximize profit. 3. Refers to a place where potential buyers and sellers get together totrade goods and services, as well as the transactions between them. A) Finance. B) Market. C) Allocation. D) Bonds. Show Answer Correct Answer: B) Market. 4. Cash flow from assets is derived from ..... A) Cash flow from creditors and cash flow from investing activities. B) Cash flow from operating activities and cash flow from financing activities. C) Cash flow from operating activities and cash flow from investing activities. D) Cash flow from financing activities and cash flow from investing activities. Show Answer Correct Answer: C) Cash flow from operating activities and cash flow from investing activities. 5. What are the advantages of property investment? A) Property does not require financial planning. B) Property is easy to resell. C) Property values tend to be stable. D) The property does not require special maintenance. Show Answer Correct Answer: C) Property values tend to be stable. 6. Income Statement is a financial report that summarizes: A) Company business results. B) 3rd party loan proceeds. C) Proceeds from the issuance of shares. D) Answers a, b and c are all correct. Show Answer Correct Answer: A) Company business results. 7. When do we set aside the money for the 10% savings? A) Before engaging the expenses. B) After engaging the expenses. Show Answer Correct Answer: A) Before engaging the expenses. 8. Farm Fresh Bhd has an 8 percent return on total assets of RM 300, 000 and a net profit margin of 5 percent. What are its sales? A) RM 3, 750, 000. B) RM 480, 000. C) RM 1, 500, 000. D) RM 300, 000. Show Answer Correct Answer: B) RM 480, 000. 9. The meaning of capital structure relates to the percentage of ..... sources. A) Short-term. B) Current. C) Medium term. D) Long-term. Show Answer Correct Answer: D) Long-term. 10. Which of the following statements best represents what finance is about? A) How political, social, and economic forces affect corporations. B) Maximizing profits. C) The study of how people and businesses make investment decisions and how to finance those decisions. D) Reducing risk. Show Answer Correct Answer: C) The study of how people and businesses make investment decisions and how to finance those decisions. 11. ..... is the main deriving force of business A) Working capital. B) Profit. C) Fixed capital. D) Employees. Show Answer Correct Answer: A) Working capital. 12. Which of the following is NOT a financial intermediary? A) Stock exchange. B) Government agencies. C) Banks. D) Mutual funds. Show Answer Correct Answer: B) Government agencies. 13. Profits are down so the controller decides to change the corporation's accounting policy relating to inventory costing. The change will allow the corporation to report higher income and higher assets, although the physical inventory has not changed. Which of the following statements is MOST correct? A) The stock price is likely to be unaffected because the stock market is efficient. B) If the stock price increases, the stock market is efficient. C) The stock price is likely to decrease because reported inventory is higher. D) The stock price is likely to increase because income is higher. Show Answer Correct Answer: A) The stock price is likely to be unaffected because the stock market is efficient. 14. The rate of interest payable on a bond is also caled: A) Effective rate of interest. B) Yield to maturity. C) Internal rate of return. D) Coupon rate. Show Answer Correct Answer: D) Coupon rate. 15. The following are among the responsibilities of VP for Administration, EXCEPT: A) Coordinating functions of finance and marketing departments. B) Providing assistance in payroll preparation, payment of vendors, and collection of receivables. C) Identifying adequate and cheap raw material suppliers. D) Assisting other departments in hiring employees. Show Answer Correct Answer: C) Identifying adequate and cheap raw material suppliers. 16. How many Americans are waiting for their grandma/grandpa to kick the bucket to inherit their money? A) 1 in 15. B) 1 in 2. C) 1 in 3. D) 1 in 5. E) 1 in 100. Show Answer Correct Answer: C) 1 in 3. 17. Life insurance helps cover ..... costs when a person dies. A) Funeral costs. B) Housing costs. Show Answer Correct Answer: A) Funeral costs. 18. RoA and RoE are measures of ..... A) Current asset activity. B) Solvency. C) Liquidity. D) Profitability. Show Answer Correct Answer: D) Profitability. 19. Higher debt-equity ratio results in: A) Higher degree of operating risk. B) Higher Earning Per Share. C) Lower financial risk. D) Higher degree of financial risk. Show Answer Correct Answer: D) Higher degree of financial risk. 20. The key participants in financial transactions are individuals, businesses, and government. Individuals are net ..... of funds, and businesses are net ..... of funds. A) Users;suppliers. B) Suppliers; users. C) Purchasers; sellers. D) Users; providers. Show Answer Correct Answer: B) Suppliers; users. 21. Mr. X takes a loan of rs 50000 from bank the rate of interest is 10% per annum. The first installment will be paid at the end of the year 5.Determine the amount of equal annual installment if mr. X wishes to repay the amount in 5 installments A) Rs 19500. B) Rs. 19400. C) Rs 19310. D) Nome of the above. Show Answer Correct Answer: C) Rs 19310. 22. This measure the capacity to earn sufficient return on sales, total assets and owner's investment. A) Profitability. B) Debt Utilization. C) Liquidity. D) Asset Utilization. Show Answer Correct Answer: A) Profitability. 23. Belle worked a 40 hour work week and makes $ 17.50 an hour, what was her gross pay for the week? A) $ 700.00. B) $ 710.00. C) $ 705.oo. D) $ 650.00. Show Answer Correct Answer: A) $ 700.00. 24. Brandy Sdn Bhd purchased new fixed assets worth RM10, 000. This statement shows that Brandy Sdn Bhd utilizes A) Uses of fund. B) Sources of fund. Show Answer Correct Answer: A) Uses of fund. 25. ..... is a measure of the volatility-or systematic risk-of a security or portfolio compared to the market as a whole. A) Return. B) Alpha. C) Beta. D) Risk. Show Answer Correct Answer: C) Beta. 26. Name the major determinant of a dividend decision A) Stability of earnings. B) Earnings. C) Cash flow position. D) Growth opportunities. Show Answer Correct Answer: B) Earnings. 27. Paying the minimum on credit card bills is a good money management practice. A) Fact. B) Fiction. Show Answer Correct Answer: B) Fiction. 28. From the below-mentioned items which are financial assets? A) Machines. B) Stocks. C) B &C. D) Bonds. Show Answer Correct Answer: D) Bonds. 29. Which financial decision help a businessman in opening a new branch of its business. A) Financing decision. B) Dividend decision. C) Investment decision. D) None of the above. Show Answer Correct Answer: C) Investment decision. 30. Given below are two statements labeled as Assertion (A) and reason (R) ASSERTION (A):Investments may be in two types of assets-physical assets and financial assets. REASON(R):Savings, if put into bank accounts, post offices lead to the formation of financial assets. Select the most appropriate answer from the options given below. A) Both A and R are true and R is the correct explanation. B) Both A and R are true but R is not the correct explanation. C) A is true R is false. D) Both A and R are false. Show Answer Correct Answer: A) Both A and R are true and R is the correct explanation. ← 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