This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 17 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The traditional department store of financeserving a variety of savers and borrowers. A) Commercial banks. B) Investment banks. C) Financial services corporation. D) None of above. Show Answer Correct Answer: A) Commercial banks. 2. Mr. Wong earned RM3000 as a graphic designer in a company. He also works as a feelancer in his free time and earned an extra income of RM300 for the last month. In the same month, Mr. Wong's total expenses was RM 1400. Calculate Mr. Wong's cash flow and status of his cash flow A) RM 1900, Negative Cash Flow. B) RM 1600, Negative Cash Flow. C) RM 1600, Positive Cash Flow. D) RM 1900, Positive Cash Flow. Show Answer Correct Answer: D) RM 1900, Positive Cash Flow. 3. Which item is not funded by your tax dollars? A) Department of Transportation (road crew). B) Public Library. C) Fast Food Restaurant. D) Local Fire Department. Show Answer Correct Answer: C) Fast Food Restaurant. 4. Forms of integrity values include: A) Enthusiastic, happy and earnest in working to be the best. B) Honestly behave positively and comply with company rules and social norms. C) Committed, dedicated and continues to develop oneself to provide more value to work. D) Trust each other and work together to realize a shared vision. Show Answer Correct Answer: B) Honestly behave positively and comply with company rules and social norms. 5. The real rate is 2.50% and inflation is 3.25%. What is the approximate nominal rate? A) 5.15%. B) 5.25%. C) 5.75%. D) 3.25%. Show Answer Correct Answer: C) 5.75%. 6. ..... is concerned with optimal procurement as well as usage of finance. A) Financial planning. B) Financial management. C) Financial calculation. D) Financial loss. Show Answer Correct Answer: B) Financial management. 7. Which of the following statements regarding horizontal analysis is false? A) Horizontal analysis can include more than two years of financial data. B) Horizontal analysis is facilitated by computing peso and percentage changes in financial statement analysis. C) Horizontal analysis analyzes ratio differences occurring between companies. D) Horizontal analysis can include the statement of cash flows. Show Answer Correct Answer: C) Horizontal analysis analyzes ratio differences occurring between companies. 8. What is installment credit? A) When you repay a loan over a set period of time with smaller payments to add up to a big payment. B) When you have to pay off the balance in full 30 days after you make the purchase. Show Answer Correct Answer: A) When you repay a loan over a set period of time with smaller payments to add up to a big payment. 9. What is not one of the three types of expenses A) Car payment. B) House payment. C) Hidden. D) Cosmetic payments. E) Utility payment. Show Answer Correct Answer: A) Car payment. 10. The arbitrary process is the behavioral foundation for the ..... A) XX approach. B) Gorder approach. C) MM approach. D) Miller approach. Show Answer Correct Answer: C) MM approach. 11. How is it possible for a firm to be profitable and still go bankrupt? A) The firm has positive net income but has failed to generate cash from operations. B) Earnings have increased more rapidly than sales. C) Sales have not improved even though credit policies have been eased. D) Net income has been adjusted for inflation. Show Answer Correct Answer: A) The firm has positive net income but has failed to generate cash from operations. 12. What is the primary concern of the financing function in financial management? A) Determining which investments to make. B) Managing a company's cash flow. C) Raising capital and managing debt. D) Distributing profits to shareholders. Show Answer Correct Answer: C) Raising capital and managing debt. 13. It is important to remember that the fundamental identity of accounting is the debit and credit recording activity where debits ..... equal credits. A) D. Sometimes. B) A. Always. C) C Never. D) B. Rarely. Show Answer Correct Answer: B) A. Always. 14. In financial management, which financial goal focuses on the long-term wealth of the shareholders? A) Market Share Maximization. B) Revenue Maximization. C) Wealth Maximization. D) Profit Maximization. Show Answer Correct Answer: C) Wealth Maximization. 15. James worked 28 hours this week and is paid $ 9.50 per hour. What is his gross pay for the week? A) $ 265.00. B) $ 270.00. C) $ 622.00. D) $ 266.00. Show Answer Correct Answer: D) $ 266.00. 16. What financial decision focuses on determining the portion of earnings to be distributed to shareholders as dividends and what portion to retain for reinvestment? A) Liquidity Decision. B) Dividend Decision. C) Financing Decision. D) Investment Decision. Show Answer Correct Answer: B) Dividend Decision. 17. And acquisition is the same thing as A) A takeover. B) An amalgamation. C) A merger. D) None of above. Show Answer Correct Answer: A) A takeover. 18. Wages are paid by the ..... A) Week. B) Minute. C) Day. D) Month. E) Hour. Show Answer Correct Answer: E) Hour. 19. ..... is the total amount of money owed to a business A) Accounts payable. B) Accounts receivable. C) Equity. D) Fixed assets. Show Answer Correct Answer: B) Accounts receivable. 20. Q3) Financial structure refers to ..... A) Short-term resources. B) All the financial resources. C) Long-term resources. D) All of these. Show Answer Correct Answer: B) All the financial resources. 21. "Shareholder wealth" in a firm is represented by ..... A) The amount of salary paid to its employees. B) The market price per share of the firm's common stock. C) The number of people employed in the firm. D) The book value of the firm's assets less the book value of its liabilities. Show Answer Correct Answer: B) The market price per share of the firm's common stock. 22. Which of the following is not usually considered a need? A) Food. B) Shelter (Somewhere to live). C) A Pair of Jordan 12's. D) None of above. Show Answer Correct Answer: C) A Pair of Jordan 12's. 23. The planning done for next one to two years is: A) Long term planning. B) Strategic planning. C) Short term planning. D) None. Show Answer Correct Answer: C) Short term planning. 24. Which of the following are all WANTS A) Food, Clothing, Housing. B) Food, Video Games, Housing. C) Iphone 11, Video Games, Concert tickets. D) None of above. Show Answer Correct Answer: C) Iphone 11, Video Games, Concert tickets. 25. When shareholders appoint financial managers to run firms and make investment decisions, this is called: A) Agency cost. B) Financing decision. C) Limited liability. D) Separation of ownership and control. Show Answer Correct Answer: D) Separation of ownership and control. 26. A firm should consider vertical integration when A) The competitive situation is highly volatile. B) Customer needs are evolving. C) The forms suppliers willingly cooporate with the firm. D) The form suppliers of raw materials are often unable to maintain quality standards. Show Answer Correct Answer: C) The forms suppliers willingly cooporate with the firm. 27. A financial manager's primary activities include making investment and financing decisions. A) True. B) False. Show Answer Correct Answer: A) True. 28. What time period does an income statement usually cover? A) 1-2 years. B) 3-6 months or less. C) 1 week. D) 5 years. Show Answer Correct Answer: B) 3-6 months or less. 29. What are the 6 questions to ask when applying for credit. A) What is the minimum payment required each month, Is there a grace period, Are there other fees associated with the credit, such as minimum finance charges, Is there a penalty for early payment, you don't need to ask questions-you just need to fill out the application. B) What is the annual fee, What is the annual percentage rate, When are payments due, What is the minimum payment required each month, Is there a grace period, Are there other fees associated with the credit, such as minimum finance charges. Show Answer Correct Answer: B) What is the annual fee, What is the annual percentage rate, When are payments due, What is the minimum payment required each month, Is there a grace period, Are there other fees associated with the credit, such as minimum finance charges. 30. For businesses that have operated for several years, the main source of budget information is A) The businesses' financial records. B) The Internet. C) The Small Business Administration. D) Business magazines and newspapers. Show Answer Correct Answer: A) The businesses' financial records. ← 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