This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 24 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the present value annuity due factor of $ 1 at a discount rate of 15% for 15 years? A) 8.5143. B) $ 6.7245. C) $ 5.8474. D) 7.1324. Show Answer Correct Answer: B) $ 6.7245. 2. Which of the following is/are correct? Which of the following statements is true? A) Fixed expenses-dividends / Fixed expenses-dividends. B) Variable expense-rent / Expenditure changes-rent. C) Active income-Allowances / Pendapatan aktif-elaun. D) Passive income-allowances / Passive income-allowances. Show Answer Correct Answer: C) Active income-Allowances / Pendapatan aktif-elaun. 3. . A firm will have favourable leverage if it A) Equity. B) Interest. C) Debt. D) Earnings. Show Answer Correct Answer: D) Earnings. 4. Property that a borrower forfeits to the bank providing the loan if he or she defaults on the loan. A) Secured Loan. B) Unsecured Loan. C) Home. D) Collateral. Show Answer Correct Answer: D) Collateral. 5. Delilah, Nabiel, and Johnny are studying for their financial management exam. They come across a question:'What are the three main financial statements used in business?' A) Income statement, balance sheet, and cash flow statement. B) Budget report, expense sheet, and investment summary. C) Tax report, liability statement, and inventory report. D) Profit statement, equity statement, and revenue statement. Show Answer Correct Answer: A) Income statement, balance sheet, and cash flow statement. 6. The current price at which an Assest or services can be brought or sold A) Present value. B) Price structure. C) Marketing. D) Market price. Show Answer Correct Answer: D) Market price. 7. A fee paid by a borrower to the lender for the use of borrowed money, typically calculated as a percentage of the original loan amount. A) Principal. B) Interest. C) Rate. D) None of above. Show Answer Correct Answer: B) Interest. 8. Capital intensive business organisations require A) Huge working capital. B) Huge fixed capital. C) No fixed capitalno working capital. D) None of above. Show Answer Correct Answer: B) Huge fixed capital. 9. Retirement plans funded by corporations orgovernment agencies for their workers and administered primarily by thetrust departments of commercial banks or by life insurance companies. A) Pension funds. B) Mutual funds. C) Credit union. D) Life insurance companies. Show Answer Correct Answer: A) Pension funds. 10. Which of the following are financial intermediaries?(1) Venture capital organisation(2) Pension fund(3) Merchant bank A) 2 only. B) 1 and 3 only. C) 2 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: D) 1, 2 and 3. 11. Financial claims to all assets A) Property. B) Equity. C) Capital. D) Owner's equity. Show Answer Correct Answer: B) Equity. 12. The furniture store offers you no-money-down on a new set of living room furniture. Further, you may pay for the furniture in three equal annual end-of-the-year payments of $ 1, 000 each with the first payment to be made one year from today. If the discount rate is 6%, what is the present value of the furniture payments? A) $ 2, 833.39. B) $ 2, 673.01. C) $ 3, 183.60. D) $ 2, 678.01. Show Answer Correct Answer: B) $ 2, 673.01. 13. When people buy property and agree to pay for it later, they are buying on ..... A) Credit. B) Debit. Show Answer Correct Answer: A) Credit. 14. A sole proprietorship is a business owned by one person or more and operated for their profit. A) False. B) True. Show Answer Correct Answer: A) False. 15. There are 3 scopes of financial management, namely: A) Funding decisions, budgeting decisions, investment decisions. B) Investment decisions, allocation decisions, asset management decisions. C) Funding decisions, investment decisions and management decisions. D) Funding decisions, asset allocation decisions, budgeting decisions. Show Answer Correct Answer: C) Funding decisions, investment decisions and management decisions. 16. Which of the following are the main functions of finance? A) Investation decision. B) Partnership Decisions. C) Management Decisions. D) Listing Decision. Show Answer Correct Answer: A) Investation decision. 17. For the year 200B, Twilight Company's income statement shows operating expenses of P204, 800. The following information is also available:Prepaid expenses, January 1, 200B-P12, 000Accrued expenses payable, January 1, 200B-33, 600Prepaid expenses, December 31, 200B-16, 800Accrued expenses payable, December 31, 200B 28, 000How much was the cash paid for operating expenses? A) 194, 400. B) 204, 800. C) 193, 600. D) 215, 200. Show Answer Correct Answer: D) 215, 200. 18. What are the essential ingredients of sound working capital management? A) Efficient cash, inventory and receivables management. B) Efficient capital contribution and debtors management. C) Efficient creditors and debtors management. D) None of these. Show Answer Correct Answer: A) Efficient cash, inventory and receivables management. 19. Wealth maximisation as the goal of the firm implies enhancing the wealth of The Board of Directors. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 20. What is meant by the term "financial" based on the material presented? A) Covers investments only. B) All matters relating to financial management to achieve financial goals. C) Covers only risk management. D) Vision to achieve financial goals. Show Answer Correct Answer: B) All matters relating to financial management to achieve financial goals. 21. The following are the 3Ts so that savings can be guaranteed by LPS, except: A) Recorded on the Bank's books. B) Interest rate < LPS guarantee interest. C) Regularly pay installments. D) Do not perform actions that are detrimental to the bank. Show Answer Correct Answer: C) Regularly pay installments. 22. Ethical behavior A) Is the fifth basic principles of finance. B) Cannot be a concern to managers who are expected to maximize shareholder value. C) In the corporate world means not breaking any laws. D) Is essential in business because unethical behavior destroys trust and business relationships. Show Answer Correct Answer: D) Is essential in business because unethical behavior destroys trust and business relationships. 23. Q2) All constituencies with a stake in the fortunes of the company are known as ..... A) Stakeholders. B) Creditors. C) Shareholders. D) Customers. Show Answer Correct Answer: A) Stakeholders. 24. The following are popular form of capital structure except one: A) Equity and capital shares only. B) Equity and debentures only. C) Equity shares, preference shares and debentures. D) Equity shares only. Show Answer Correct Answer: A) Equity and capital shares only. 25. The agency problem takes place between A) Shareholders and creditors. B) Managers and employees. C) Employees and customers. D) Shareholders and managers. Show Answer Correct Answer: D) Shareholders and managers. 26. A company's internal source of equity capital can be generated from retained earnings.What does a retained earning mean? A) It's a sum of money paid regularly by a company to its shareholders out of its profits. B) It's an asset account on the balance sheet that represents money due to a company in the short-term. C) It's the amount of net income left over for the business after it has paid out dividends to its shareholders. D) None of above. Show Answer Correct Answer: C) It's the amount of net income left over for the business after it has paid out dividends to its shareholders. 27. A company is evaluating an investment project with the following forecast cash flows:Time 0 1 2 3 4Cash flow ($ m) (6.5) 2.4 3.1 2.1 1.8Using discount rates of 15% and 20%, what is the internal rate of return of the investment project? (to one decimal place) A) 17.7%. B) 17.8%. C) 17.6%. D) None. Show Answer Correct Answer: B) 17.8%. 28. Capital that comes from the creditor, a debt for the company concerned is called ..... A) Own capital. B) Company capital. C) Venture capital. D) Foreign capital. Show Answer Correct Answer: D) Foreign capital. 29. Profitability and liquidity are two main objectives of ..... ? A) Cash management. B) Inventory management. C) Receivable management. D) All of these. Show Answer Correct Answer: A) Cash management. 30. Open-end credit is A) Revolving credit. B) One time only credit. Show Answer Correct Answer: A) Revolving credit. ← 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