This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Suppose that general motors has made an offer to acquire general Mills ignoring potential trust problems this mergers would be classified as a A) Conglomerate merger. B) Horizontal merger. C) Monopolistic merger. D) Vertical merger. Show Answer Correct Answer: A) Conglomerate merger. 2. The costs of operating a business A) Budget. B) Expenses. C) Accounts. D) Inventory. Show Answer Correct Answer: B) Expenses. 3. This is the money paid to the company's shareholders once profit earned A) CapEx. B) Dividend. C) Retained earning. D) Interest. Show Answer Correct Answer: B) Dividend. 4. What does the T in SMART stand for? A) Testable. B) Thorough. C) Terrific. D) Timely. Show Answer Correct Answer: D) Timely. 5. The size of assets, the profitability and competitiveness are affected by one of the financial decisions. Name the decision A) Financing decision. B) Working capital decision. C) Dividend decision. D) Capital budgeting. Show Answer Correct Answer: D) Capital budgeting. 6. ..... is money supplied by investors, banks, or owners of a business. A) Capital. B) Property. C) Equity. D) Income statement. Show Answer Correct Answer: A) Capital. 7. Original and additional investments of the owner. A) Drawings. B) Revenues. C) Capital. D) Expenses. Show Answer Correct Answer: C) Capital. 8. A firm starts its year with positive net working capital. During the year, the firm acquires more short-term debt than it does short-term assets. This means that: A) The ending net working capital must be negative. B) Accounts payable and inventory increased during the year. C) The ending net working capital can be positive, negative, or equal to zero. D) None of above. Show Answer Correct Answer: C) The ending net working capital can be positive, negative, or equal to zero. 9. Where do you put your signature on a check you just wrote? A) None of them. B) Bottom left corner on the line. C) Top right corner on the line. D) Bottom right corner on the line. Show Answer Correct Answer: D) Bottom right corner on the line. 10. How will you earn more money over time for your financial future? A) Simple interest. B) Compound interest. C) Simple yield. D) Compound yield. E) Asset allocation. Show Answer Correct Answer: A) Simple interest. 11. Name the concept which increases the return on equity shares with a change in the capital structure of a company. A) Capital budgeting. B) Dividend decision. C) Capital structure. D) Trading on equity. Show Answer Correct Answer: D) Trading on equity. 12. What is ignored in profit maximisation? A) Time value. B) Earnings. C) Risk. D) Dividend. Show Answer Correct Answer: A) Time value. 13. A government body uses measures based upon the 'three Es' to measure value for money generated by a publicly funded hospital. Which of the following relates to efficiency? A) Cost per successfully treated patient. B) Percentage change in doctors' salaries compared with previous year. C) Proportion of patients readmitted after unsuccessful treatment. D) Cost per operation. Show Answer Correct Answer: A) Cost per successfully treated patient. 14. ..... is the process of determining the present value of a payment or a stream of payments that is to be received in the future A) Compounding. B) Discounting. C) Perpetuity. D) Annuity. Show Answer Correct Answer: B) Discounting. 15. It includes overseeing the funding for building grounds, employee salaries, student programs, supplies, and technology. A) Human Resource Management. B) Production Management. C) Financial Management. D) None of above. Show Answer Correct Answer: C) Financial Management. 16. Financial ratio analysis that is often used in companies is: A) Liquidity ratio, leverage ratio, cash ratio. B) Activity ratio, liquidity ratio, profitability ratiio. C) Turn over ratio, cash ratio, Debt of equity ratio. D) Activity ratio, rentability ratio, turn over ratio. Show Answer Correct Answer: B) Activity ratio, liquidity ratio, profitability ratiio. 17. Financial Decisions involve: A) Investment, financing and dividend decision. B) Investment, financing and sales decision. C) Financing, dividend and cash decision. D) None of these. Show Answer Correct Answer: A) Investment, financing and dividend decision. 18. Commercial papers A) Long term debt. B) Short term debt. Show Answer Correct Answer: B) Short term debt. 19. Net working capital is equal to A) Total assets minus total liabilities. B) Current assets minus current liabilities. C) Total operating capital minus net income. D) Current assets minus total liabilities. Show Answer Correct Answer: B) Current assets minus current liabilities. 20. Which of these would require the highest credit A) Approval for a credit card. B) Paying your internet bill on credit. C) Getting a mortgage. D) Dining out on credit. E) Going to the movies on credit. Show Answer Correct Answer: C) Getting a mortgage. 21. What is the process of budgeting? A) Forecasting the future. B) Allocating financial resources. C) Analyzing financial data. D) Creating financial reports. Show Answer Correct Answer: B) Allocating financial resources. 22. Traditional Approach is a(n) ..... approach in between both NI and NOI approach A) Intermediate. B) Integrating. C) Improvised. D) Improved. Show Answer Correct Answer: A) Intermediate. 23. Which of following does not a type of direct foreign investment? A) International trade. B) Acquisition of existing operators. C) Franchising. D) Joint ventures. Show Answer Correct Answer: A) International trade. 24. The ..... form shows how much money you made and how much you paid in taxes from the previous year. A) D-400. B) W-2. C) W-4. D) None of above. Show Answer Correct Answer: B) W-2. 25. Higher Inventory to be maintained when more working capital is required. A) True. B) False. Show Answer Correct Answer: A) True. 26. Asyraf have fixed expenses RM 1000 and variable expenses RM 300, so total there are RM 1300 total cash inflows A) False. B) True. Show Answer Correct Answer: A) False. 27. Sales, expenses, and profits or losses for a specific period are reported in a company's income statement. A) True. B) False. Show Answer Correct Answer: A) True. 28. The data collected should be: A) Old. B) Unreliable. C) Accurate. D) None. Show Answer Correct Answer: C) Accurate. 29. If existing share holders can share the control then they may go for debt. A) True. B) False. Show Answer Correct Answer: B) False. 30. What is the formula for Merchandise Inventory Turnover Ratio? A) Average Merchandise Inventory/Cost of Goods Sold. B) Cost of Goods Sold/Merchandise Inventory. C) Merchandise Inventory/Cost of Goods Sold. D) Cost of Goods Sold/Average Merchandise Inventory. Show Answer Correct Answer: D) Cost of Goods Sold/Average Merchandise Inventory. ← PreviousNext →Related QuizzesManagement QuizzesFinance QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8Financial Management Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books