This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 20 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A legal document that functions like cash. A) Check. B) Debit Card. C) Credit Card. D) ATM. Show Answer Correct Answer: A) Check. 2. Compute the EPS based on the given data below:Shares Outstanding-100, 000Year-end Net income-750, 000 A) 7.50 per share. B) 5 per share. C) 6 per share. D) 7 per share. Show Answer Correct Answer: A) 7.50 per share. 3. In weighted average cost of capital, rising in interest rate leads to- A) Increase the capital structure. B) Decrease in cost of debt. C) Decrease the capital structure. D) Increase in cost of debt. Show Answer Correct Answer: D) Increase in cost of debt. 4. What is a fundamental concept in financial management? A) Investment. B) Growth. C) Frugality. D) Debt. Show Answer Correct Answer: B) Growth. 5. Which is not a part of investment decision?a. Working capital managementb. Cash managementc. Credit managementd. Capital budgeting A) C. B) D. C) B & c. D) A & b. Show Answer Correct Answer: C) B & c. 6. Keeping your money in a bank prevents you from ..... or ..... A) Saving it, depositing it, or withdrawing it. B) Losing it, spending it, or having it stolen easily. C) Giving it away, putting in a jar, or going on a trip around the world. D) None of above. Show Answer Correct Answer: B) Losing it, spending it, or having it stolen easily. 7. How much is Puan Sofia's monthly saving if she wanted to pay the down payment for a RM650 000 house in six years? A) RM1000.78. B) RM900.00. C) RM1111.78. D) RM902.78. Show Answer Correct Answer: D) RM902.78. 8. The principal participants in in the financial markets are A) Dealers, brokers, regulators. B) Businesses, banks, government. C) Borrowers, savers, financial institutions. D) Borrowers, savers, financial institutions. Show Answer Correct Answer: C) Borrowers, savers, financial institutions. 9. Financial leverage measures ..... A) Sensitivity of EBIT with respect of % change with respect to output. B) % variation in the level of production. C) Sensitivity of EPS with respect to % change in level of EBIT. D) No change with EBIT and EPS. Show Answer Correct Answer: C) Sensitivity of EPS with respect to % change in level of EBIT. 10. What is the most widely used liquidity ratio? A) Current ratio. B) Quick ratio. C) Inventory turnover. D) Debt ratio. Show Answer Correct Answer: A) Current ratio. 11. ..... are bank loans, credit card debts, and other financial obligations. And also outstanding payments such as unsettled rent, utility bills, credit card bills, and others. A) Liabilities. B) Assets. Show Answer Correct Answer: A) Liabilities. 12. Stock Market condition is a factor related to A) Investment Decision. B) Dividend Decision. C) Financial Planning. D) Financing Decision. Show Answer Correct Answer: D) Financing Decision. 13. Cindy wants to buy a refrigerator that costs RM2300 in 5 months. Calculate the amount of money she needs to save each month. A) RM460. B) RM420. C) RM480. D) RM360. Show Answer Correct Answer: A) RM460. 14. Cost of retained earnings is A) Explicit cost. B) Marginal cost. C) Historical cost. D) Opportunity cost of capital. Show Answer Correct Answer: D) Opportunity cost of capital. 15. International Financial Management is A) Management of the financial activities of an organization in a debt-ridden situation. B) Management of the financial activities of an organization in a domestic situation. C) Management of the financial activities of an organization in critical situations. D) Management of the financial activities of an organization in an international situation. Show Answer Correct Answer: D) Management of the financial activities of an organization in an international situation. 16. Markets in which corporations raise new capital. Thecorporation selling the newly created stock receives the proceeds from the salein a primary market transaction. A) Capital markets. B) Futures markets. C) Primary markets. D) Spot markets. Show Answer Correct Answer: C) Primary markets. 17. The proposal is subject to technical viability, social and financial viability during the A) Project screening. B) Project selection. C) Project evaluation. D) Review. Show Answer Correct Answer: A) Project screening. 18. Profit loss (income statement) mengukur ..... A) All answers are correct. B) Asset and liability. C) Cash. D) Profitability. Show Answer Correct Answer: B) Asset and liability. 19. Family Mart collect RM2, 000 from SS Company who is the customer. The statement shows that Family Mart utilizes A) Uses of fund. B) Sources of fund. Show Answer Correct Answer: B) Sources of fund. 20. Which one of these is NOT an asset? A) Non-Liquid. B) Stocks. C) Liquid. D) Liabilities. E) Investments. Show Answer Correct Answer: D) Liabilities. 21. True or False:Income is money you earn A) True. B) False. Show Answer Correct Answer: A) True. 22. For the purpose of reducing completion and increasing market share two companies with the same product combined this statement is about A) Horizontal merger. B) Vertical merger. C) None of a and b. D) A and b. Show Answer Correct Answer: A) Horizontal merger. 23. If an employee earns "$ 8.50" per hour, what is their "Overtime Rate" ? A) $ 10.25. B) $ 12.75. C) $ 8.50. D) $ 12.50. Show Answer Correct Answer: B) $ 12.75. 24. ..... is NOT a main category of financial management. A) Working capital management. B) Accounts payable management. C) Capital structure. D) Capital budgeting. Show Answer Correct Answer: B) Accounts payable management. 25. Which of the following is the correct order of financial management process? I) Carrying out financial planII) Setting goalsIII) Reviewing and revising the progressIV) Evaluating financial statusV) Creating financial plan A) IV, II, V, I, III. B) IV, I, II, V, III. C) II, IV, V, I, III. D) II, V, IV, III, I. Show Answer Correct Answer: C) II, IV, V, I, III. 26. Which is not a money tip? A) Create a budget. B) Spend every dollar of your paycheck on wants. C) Save some money each paycheck. D) Limit credit card usage. E) Track expenses. Show Answer Correct Answer: B) Spend every dollar of your paycheck on wants. 27. A balance sheet contains which of the following three accounts: A) Revenue, expenses, owner's equity. B) Expenses, assets, revenue. C) Assets, revenues, liabilities. D) Assets, liabilities, owner's equity. Show Answer Correct Answer: D) Assets, liabilities, owner's equity. 28. Costs that change at the same rate as the firm's sales, is the meaning of ..... A) Flotation Cost. B) Variable Cost. C) Fixed Cost. D) Sunk Cost. Show Answer Correct Answer: B) Variable Cost. 29. Depreciation is a source of cash inflow because A) It is a taxable expense. B) It supplies cash for future asset purchases. C) It is a tax-deductible cash expense. D) It is a tax-deductible noncash expense. Show Answer Correct Answer: D) It is a tax-deductible noncash expense. 30. Merger and acquisition between an Indian and foreign company requires approval from the A) Government of India. B) Reserve Bank of India. C) Government of India and reserve Bank of India both. D) None of above. Show Answer Correct Answer: C) Government of India and reserve Bank of India both. ← 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