This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 18 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Lf the credit sales of the firm are Rs. 6, 000, 000 and the average debtors are Rs. 1, 500, 000; then the receivables turnover is ..... Times. A) 3 times. B) 2 times. C) 5 times. D) 4 times. Show Answer Correct Answer: D) 4 times. 2. Practical application of time value of money A) Preparation of loan repayment schedule. B) Sinking fund creation. C) Valuation problems. D) All the above. Show Answer Correct Answer: D) All the above. 3. If cash discount is offered to customers, then sales would increase. A) True. B) False. C) May be. D) None. Show Answer Correct Answer: A) True. 4. Sixty percent of Perdana' annual sales of RM900, 000 is on credit. If its year-end receivables turnover is 4.5, the average collection period and the year-end receivables are, respectively ..... (Assume a 365-day year). A) 81 days and RM120, 000. B) 73 days and RM120, 000. C) 73 days and RM108, 000. D) 81 days and RM108, 000. Show Answer Correct Answer: A) 81 days and RM120, 000. 5. What is related to debt A) (b) Lower cost higher risk. B) (a) Higher cost higher risk. C) (d) Low cost low risk. D) C) High cost low risk. Show Answer Correct Answer: A) (b) Lower cost higher risk. 6. It is known as the ability of a company to obtain the greatest profit and performance in its operations. A) Value added. B) Monetary Politics. C) Basic financial objective. D) Profit maximization. Show Answer Correct Answer: D) Profit maximization. 7. Transfer payments are..... payments A) One way. B) Two way. C) Back and forth. D) Not. E) Invisible. Show Answer Correct Answer: A) One way. 8. Revenue is described as money ..... A) Leaving an business's account. B) Coming into business. C) Owed by the business to suppliers. D) None of the above. Show Answer Correct Answer: B) Coming into business. 9. Money is used as a ..... because it's the intermediary in the exchange process. A) Payment. B) Store of value. C) Medium of exchange. D) Standard of value. Show Answer Correct Answer: C) Medium of exchange. 10. Financial ratios for the statement of financial position and the income statement are done. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 11. Maximisation of Shareholders Wealth is reflected in A) Sales Maximization. B) Number of Shareholders. C) Market Price of Equity Shares. D) None of the above. Show Answer Correct Answer: C) Market Price of Equity Shares. 12. What is the primary purpose of a cash flow statement? A) To provide relevant information about a company's cash receipts and cash payments during an accounting period. B) To generate positive future net cash flows. C) To meet its obligations and pay dividends. D) For external financing. Show Answer Correct Answer: A) To provide relevant information about a company's cash receipts and cash payments during an accounting period. 13. Eric buys a copy of his favorite video game for $ 25.70. You give the clerk $ 30. How much change will you receive? A) $ 4.20. B) $ 4.30. C) $ 4.40. D) None of above. Show Answer Correct Answer: B) $ 4.30. 14. The cost of raising money by selling securities, is the meaning of ..... A) Flotation Cost. B) Fixed Cost. C) Sunk Cost. D) Variable Cost. Show Answer Correct Answer: A) Flotation Cost. 15. In regard to the agency problem, ..... are the principal owners of a corporation. A) Shareholders. B) Managers. C) Employees. D) Suppliers. Show Answer Correct Answer: A) Shareholders. 16. Financial leverage helps one to estimate ..... A) Business Risk. B) Financial Risk. C) Production Risk. D) Business and financial risk. Show Answer Correct Answer: B) Financial Risk. 17. ..... percent of US taxes are collected by the federal government A) 2%. B) 67%. C) 20%. D) 4%. E) 15%. Show Answer Correct Answer: B) 67%. 18. Ali is going to finish his study soon. He wants to start working to let his parents live a comfortable life. Which of the following is a specific goal for his aim using the SMART approach? A) Earn a lot of money to buy a big house for his parents. B) Set up his own business so that he can have a million in 5 years. C) Find a job with a salary of RM2 500 each month so that he can give RM1 000 to his parents as a monthly allowance. D) Find a job with a salary above RM3 000 every month. Then, invest the money in an equity fund that yields a high return. The interest earned from the investment will be used for his parents' retirement. Show Answer Correct Answer: C) Find a job with a salary of RM2 500 each month so that he can give RM1 000 to his parents as a monthly allowance. 19. ..... is the area of finance concerned with activities such as borrowing funds to finance projects such as plant expansions or new product launches. A) International finance. B) Investments. C) Working capital management. D) Corporate finance. Show Answer Correct Answer: D) Corporate finance. 20. What is a credit referring to a checking account? A) Subtraction or a minus to the account. B) What is on your credit report. C) Deposit or an addition to the account. D) When you enter your pin number. Show Answer Correct Answer: C) Deposit or an addition to the account. 21. A ..... is a monthly plan that helps you use your money correctly in order to pay all your bills and still have money left over for savings or emergencies. A) Income. B) Economics. C) Savings. D) Budget. Show Answer Correct Answer: D) Budget. 22. A yearly fee that may be charged for having a credit card. A) Balance transfer. B) Credit limit. C) Annual fee. D) Late-payment fee. Show Answer Correct Answer: C) Annual fee. 23. Covers your business in the event you have to limit or shut down because of disaster or catastrophic event. The insurance compensates a business for financial losses. A) Vehicle insurance. B) Business interruption insurance. C) Product liability insurance. D) Home-based businesses. Show Answer Correct Answer: B) Business interruption insurance. 24. There exist a ..... relationship between the Bond Price and Interest rate A) Direct relationship. B) No. C) Inverse Relationship. D) Positive relationship. Show Answer Correct Answer: C) Inverse Relationship. 25. The pay that is earned before deductions is taken out an employee's pay is called: A) Gross Pay. B) Take Home Check. C) Overtime. D) Net Pay. Show Answer Correct Answer: A) Gross Pay. 26. Deciding how to spend your money before you actually spend it. A) Budget. B) Cash. C) Balance. D) Account. Show Answer Correct Answer: A) Budget. 27. Financial controller is responsible A) Cash management. B) Credit management. C) Securities management. D) None of these. Show Answer Correct Answer: D) None of these. 28. The following accounts are included in the Balance Sheet, except: A) Account Receivable. B) Inventories. C) Depreciation and Amortisation. D) Patent & Godwill. Show Answer Correct Answer: C) Depreciation and Amortisation. 29. The service industry is defined as "a series of interactions between participants, processes and physical elements" . A) True. B) False. Show Answer Correct Answer: A) True. 30. Trading on equity takes place when: A) ROI is more than the rate of interest on debt. B) ROI is less than the ROE. C) ROI is more than the ROE. D) ROI is less than rate of interest on debt. Show Answer Correct Answer: A) ROI is more than the rate of interest on debt. ← 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