This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 15 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The total amount of money earned during the pay period before deductions. A) Gross Pay. B) Take Home Pay. C) Net Pay. D) Working Pay. Show Answer Correct Answer: A) Gross Pay. 2. Which of the following is the correct example of asset and liability? Yang manakah merupakan contoh aset dan liabiliti yang betul? A) Asset:Loans Liability:Credit card debts. B) Asset:Unit Trust / Amanah Saham Liability:Installment balance / Installment balance. C) Asset:Tax / cukai Liability:Real estate / hartanah. D) Asset:Saving / SimpananLiability:Property / harta. Show Answer Correct Answer: B) Asset:Unit Trust / Amanah Saham Liability:Installment balance / Installment balance. 3. Which one of these is liquid? A) Loans. B) Stocks. C) Currencies. D) A mutual fund. E) Bank accounts. Show Answer Correct Answer: E) Bank accounts. 4. 'people act in their own financial interest' pernyataan tersebut merupakan prinsip keuangan self interest behavior. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 5. Choose the correct way to review and revise the progress of a financial plan. A) Financial management does not need regular review. B) Review effects of financial management on regular basis. C) Ask older people. D) Budget made must be followed despite the changing in income and needs. Show Answer Correct Answer: B) Review effects of financial management on regular basis. 6. The capital budgeting decision model that utilizes all the discounted cash flow of a project is the ..... model, which is one of the single most important models in finance. A) Net present value (NPV). B) Discounted payback period. C) Internal rate of return (IRR). D) Profitability index (PI). Show Answer Correct Answer: A) Net present value (NPV). 7. This considered as the oldest, most common, and simplest form of business organization. A) Sole Ownership. B) Sole Proprietorship. C) Partnership. D) Corporation. Show Answer Correct Answer: B) Sole Proprietorship. 8. Which of the following is/are correct? A) Short term financial goals can be achieved less than 6 months. B) Short term financial goals can be achieved less than a year. C) Long term financial goals usually take more than 3 years. D) Long term financial goals usually more than 10 years. Show Answer Correct Answer: B) Short term financial goals can be achieved less than a year. 9. Capital structure means the portion of current assets and current liabilities. A) True. B) False. Show Answer Correct Answer: B) False. 10. What are the only two ways to finance a firm? A) By selling assets or taking on a bank loan. B) By the owner's funds or funds from relatives. C) By government grants or tax subsidies. D) By raising equity or taking on debt. Show Answer Correct Answer: D) By raising equity or taking on debt. 11. In February 2020, Mr Daniel received a total income of RM4 500. His monthly fixed expenses and variable expenses are RM2 880 and RMx respectively. There is a negative cash flow of RM620. Calculate the value of x? Pada bulan Februari 2020, gaji Daniel ialah RM 4 500. Belanja tetap dan belanja beruabahnya ialah RM 2 880 dan RM X. Terdapat aliran tunai yang negatif sebanyak RM620. Sila cari nilai bagi RM X. A) 2 240. B) 3 500. C) 1 000. D) 3 880. Show Answer Correct Answer: A) 2 240. 12. These loans are sanctioned for a period of more than 5 years A) Short term loans. B) Medium term loans. C) Long term loans . D) None of above. Show Answer Correct Answer: C) Long term loans . 13. This government agency enforces tax laws. A) PBS. B) DEA. C) IRS. D) OSHA. Show Answer Correct Answer: C) IRS. 14. Used of fixed interest security in the capital structure is called A) Operating leverage. B) Financial leverage. C) Combined leverage. D) All of the above. Show Answer Correct Answer: B) Financial leverage. 15. FINANCING DECISIONS RELATE TO THE A) DIVIDEND DECISIONS. B) RESERVE BUILDING. C) ACQUISITION OF CAPITAL. D) ASSETS PROCUREMENT. Show Answer Correct Answer: C) ACQUISITION OF CAPITAL. 16. The biggest accounting firms are known as the "Big Four." these include, PricewaterhouseCoopers, Deloitte Touche Tomatsu, Ernst & Young, and KPMG. A) False. B) True. Show Answer Correct Answer: B) True. 17. Tom works a 35 hour work week and makes $ 13.50 per hour, what is his gross pay? A) $ 474.50. B) $ 472.50. C) $ 400.00. D) $ 470.00. Show Answer Correct Answer: B) $ 472.50. 18. A company has 10% perpetual debt of Rs. 1, 00, 000. The tax rate is 35%. Which one of the following is the after-tax cost of capital assuming that the debt is issued at 10% premium? A) 10%. B) 5.91%. C) 6.5%. D) 7.22%. Show Answer Correct Answer: B) 5.91%. 19. Ratio to assess the company's ability to fulfill all financial obligations in the short term. What is this ratio called? A) Financial ratio. B) Activity ratio. C) Liquidity ratio. D) Leverage ratio. Show Answer Correct Answer: C) Liquidity ratio. 20. Guest-the one who offers the hospitality products/services A) True. B) False. Show Answer Correct Answer: B) False. 21. Fixed assets investment decision is called ..... A) Management of working capital. B) Capital budgeting. C) Financing decision. D) None of these. Show Answer Correct Answer: B) Capital budgeting. 22. Net Operating Income Approach proposes that higher the debt higher the ..... to shareholders A) Cost. B) Firm Value. C) Risk. D) Returns. Show Answer Correct Answer: C) Risk. 23. What does the S in SMART stand for? A) Spontaneous. B) Specific. C) Simple. D) Social. Show Answer Correct Answer: B) Specific. 24. Which among the following is not true about an operating lease1. Short term lease2. Irrevocable3. Lessee bears the cost of maintenance and insurance 4. Revocable A) Only 4. B) 1 & 4. C) 2 & 4. D) 2 & 3. Show Answer Correct Answer: D) 2 & 3. 25. Unearned income includes all except ..... A) Dividends. B) Annuities. C) Tips. D) Interest. E) Pensions. Show Answer Correct Answer: C) Tips. 26. Pam needs to take money out of her account from an ATM what card will she use? A) Sam's Card. B) Credit Card. C) Macy's Card. D) Debit Card. Show Answer Correct Answer: D) Debit Card. 27. Another name for long term investment decision is ..... A) Dividend decision. B) Financing decision. C) Capital budgeting decision. D) Working capital decision. Show Answer Correct Answer: C) Capital budgeting decision. 28. IF THE SALES ARE RS 50, 00, 000 AND VARIABLE COSTS ARE 30, 00, 000 A) CONTRIBUTION RS 80, 00, 000. B) CONTRIBUTION RS 150, 00, 000. C) CONTRIBUTION RS 15, 00, 000. D) NONE OF THE ABOVE. Show Answer Correct Answer: D) NONE OF THE ABOVE. 29. Which instrument of money market is also called zero coupon bond? A) (a) Call money. B) (b) Commercial Paper. C) C) Certificate of Deposit. D) (d) Treasury Bill. Show Answer Correct Answer: D) (d) Treasury Bill. 30. Goodwin Transport paid $ 85 in dividends and $ 110 in interest expense during a given year. During that same year, the firm issued $ 40 in new equity shares, issued new debt of $ 65, and repaid $ 23 of old debt. What is the cash flow to creditors for that year? A) $ 68. B) $ 152. Show Answer Correct Answer: A) $ 68. ← 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