Financial Management Quiz 2 (30 MCQs)

Quiz Instructions

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1. Which of the following is a long-term financial goal?
2. This is one part of the Definition of Financial Reports, except:
3. What type of loan requires both principal and interest payments as you go by making equal payments each period?
4. Putting Money Away for Later *
5. Which of the following is an advantage of preference shares?
6. In the share market, the market value of any share is decided by:
7. Which is greater, the present value of a $ 1, 000 five-year ordinary annuity discounted at 10%, or the present value of a $ 1, 000 five-year annuity due discounted at 10%?
8. Doing this means my money is gone for good. I won't get it back.
9. ROI is 9.65% and prevailing interest rate is 11%. The company is planning to raise funds through issue of debentures. The company ..... issue debentures.
10. A manufacturing company has credit sales of $ 10 million. It has a gross profit margin of 65%. Payable days is 25 days (assume 365 days per year), Receivables days is 42 days and the operating cycle is 80 days. What is the level of inventory?
11. Net Operating Income Approach believes that the ..... is irrelevant and does not affect the value of the firm
12. Convert 35% to a decimal
13. The purpose of capital budgeting is
14. Which analysis depicts the relationship between two figures
15. Are the following statements true or false? True False 1. Maximising market share is an example of a financial objective. 2. Shareholder wealth maximisation is the primary financial objective for a company listed on a stock exchange. 3. Financial objectives should be quantitative so that their achievement can be measured.
16. The long-run objective of financial management is to:
17. The major advantage of a regular partnership or a corporation as a form of business organisation is the fact that both offer their owners limited liability, whereas proprietorship do not.
18. A ball costs $ 5. Tax is 6%. Find the amount of tax for the ball.
19. Which of the following statements is/are correct?1. Securitisation is the conversion of illiquid assets into marketable securities2. The reverse yield gap refers to equity yields being higher than debt yields3. Disintermediation arises where borrowers deal directly with lending individuals
20. The customers can withdraw money easily and quickly 24 hours a day.
21. ..... decision are irreversible.
22. Select the steps involved in financial planning
23. All fixed assets and part of the permanent will be financed by long-term financing. The statement is best described for .....
24. The excess of the present value of benefits over the present value of costs of a course of
25. More value is preferred than .....
26. Source of Finance Through Less cost is
27. You just rented a new apartment and you pay $ 950.00 every month, this is a
28. What is the ideal maximum limit for our monthly debt installments compared to our income?
29. Leasing of machinery can be categorized as
30. When Share prices are going up, it indicates