This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 30 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Reason for time value of money A) Inflation. B) Reinvestment purpose. C) Uncertainity. D) All the above. Show Answer Correct Answer: D) All the above. 2. What is financial planning? A) How you can spend your money the fastest way possible. B) Managing money so that you can meet short and long term financial goals. C) A fancy term for budgeting. D) None of above. Show Answer Correct Answer: B) Managing money so that you can meet short and long term financial goals. 3. CAPM stands for. A) Capital amount printing model. B) Capital asset pricing model. C) Capital amount pricing model. D) Capital asset printing model. Show Answer Correct Answer: C) Capital amount pricing model. 4. Which among the following figures is not relevant while calculating the cost of the redeemable preference shares? A) Earnings per share. B) Flotation cost. C) Discount. D) None of the above. Show Answer Correct Answer: A) Earnings per share. 5. Your ..... is the amount of money in your account at any time or the amount of money you still owe on a purchase that you make monthly payments on like a car/house. A) Budget. B) Balance. C) Salary. D) Net Income. Show Answer Correct Answer: B) Balance. 6. Which of the following best describes Murabaha as a source of finance within the Islamic banking model? A) A form of trade credit or loan. B) The equivalent of lease finance. C) A special kind of partnership where one partner gives money to another for investing it in a commercial enterprise. D) A relationship between two or more parties, who contribute capital to a business, and divide the net profit and loss pro-rata. Show Answer Correct Answer: A) A form of trade credit or loan. 7. What percentage is attandence? A) 0.8. B) 0.5. C) 0.15. D) 0.25. E) 0.3. Show Answer Correct Answer: B) 0.5. 8. Ensuring that the fund to be invested will create value to a business or an individual in the form of profit. A) Evaluating Investments. B) Finance. C) Financial Institution. D) Financial Management. Show Answer Correct Answer: A) Evaluating Investments. 9. What is the primary purpose of a capital budget? A) Planning long-term investments. B) Managing day-to-day expenses. C) Controlling operational costs. D) Estimating monthly revenue. Show Answer Correct Answer: A) Planning long-term investments. 10. The definition of financial management is wrong as follows: A) All activities and financial activities within the company to manage the money obtained from sales. B) All activities / activities related to how to obtain working capital funding, allocate funds & manage assets to achieve the company's main goals. C) How to manage finances in a company for the company's benefit. D) How to manage household finances. Show Answer Correct Answer: B) All activities / activities related to how to obtain working capital funding, allocate funds & manage assets to achieve the company's main goals. 11. Basic objective of Financial Management is ..... A) Maximization of profit. B) Maximization of share holder's wealth. C) Ensuring Financial discipline in the firm. D) All of these. Show Answer Correct Answer: B) Maximization of share holder's wealth. 12. In relation to the financial management of a company, which of the following provides the best definition of a firm's primary financial objective? A) To maximise the level of annual dividends. B) To maximise the wealth of its ordinary shareholder. C) To achieve long-term growth in earnings. D) To maximise the level of annual profit. Show Answer Correct Answer: B) To maximise the wealth of its ordinary shareholder. 13. Which of the following best describes the term asset? A) Amounts a business owes. B) An item of value owned by a business. C) Amounts owned to the business by an external party. D) Something that a business owns that lasts more than 1 year. Show Answer Correct Answer: B) An item of value owned by a business. 14. John lives in North Carolina, is single, and earns more than $ 5, 500 per year. He should use the ..... form to file your state income taxes. A) D-400. B) 1040EZ. C) W-4. D) None of above. Show Answer Correct Answer: A) D-400. 15. In managing the day-to-day needs of the business, it is always recommended that a financial manager do the following A) To pay their bills as late as possible and get liquid funds from receivables as quickly as possible. B) To pay their bills as quickly as possible and get liquid funds from receivables as late as possible. Show Answer Correct Answer: A) To pay their bills as late as possible and get liquid funds from receivables as quickly as possible. 16. A person buys 100 shares @ Rs.100 per share of XYZ company. After some time the market price of shares becomes Rs.120 per share. How much wealth shall hehave in the company. A) Rs.12, 000. B) Rs.10000. C) Rs.8000. D) Rs.10120. Show Answer Correct Answer: A) Rs.12, 000. 17. Mm approach is known as theory of relevance when it is assumed that there is A) Absence of taxes. B) Presence of taxes. C) Investors act rationally. D) All of the above. Show Answer Correct Answer: B) Presence of taxes. 18. Working capital refers to excess of current assets over current liabilities. A) True. B) False. Show Answer Correct Answer: A) True. 19. Which of the following is not included in the capital structure? A) Preferred stock,. B) Current assets. C) Retained earnings. D) Long term debt. Show Answer Correct Answer: B) Current assets. 20. Which Concept explains this statement the best?"How much money do the owners' receive based on the net profit of the company." A) Return on Owners Equity. B) Net profit margin. C) Return on total capital. D) None of above. Show Answer Correct Answer: A) Return on Owners Equity. 21. Rate of return on capital is exceptionally high in A) Fixed capital. B) Over capitalisation. C) Under capitalisation. D) Working capital. Show Answer Correct Answer: C) Under capitalisation. 22. The followings are the statements that best described for cash budget, except A) The cash forecast of the firm by planning inflows and outflows. B) Depreciation is excluded from the statement. C) Used to estimate short term cash requirements. D) Positive cashflow indicate the firm has surplus cash. Show Answer Correct Answer: D) Positive cashflow indicate the firm has surplus cash. 23. Q8) In the organization structure of the finance department, who typically reports to the Chief Financial Officer (CFO)? A) Operations managers. B) Marketing managers. C) Sales managers. D) Treasury managers. Show Answer Correct Answer: D) Treasury managers. 24. Increase in accounts receivable A) Operating Activities. B) Investing Activites. C) Financing Activities. D) None of above. Show Answer Correct Answer: A) Operating Activities. 25. If you miss you a class what happens A) You get a zero. B) Professor Dinter will find you. C) You die. D) You fail the year. E) Your get disowned by your parents. Show Answer Correct Answer: B) Professor Dinter will find you. 26. Host-the one who pays to utilize/consume the products/services. A) True. B) False. Show Answer Correct Answer: B) False. 27. Finance function comprises A) Expenditure of funds only. B) Procurement & effective use of funds. C) Procurement of finance only. D) Safe custody of funds only. Show Answer Correct Answer: B) Procurement & effective use of funds. 28. What is the main function of the money market? A) Channeling savings into loans or investments. B) Dealing with long-term securities. C) Dealing with short-term securities. D) Facilitating the flow of funds among investors. Show Answer Correct Answer: B) Dealing with long-term securities. 29. Individuals or companies that make a profit investing in startup companies A) Venture Capitalist. B) Silent Partner. C) Entrepreneurs. D) Bill Gates. Show Answer Correct Answer: A) Venture Capitalist. 30. What is the primary goal of financial managers? A) Maximizing profits. B) Minimizing debt. C) Maintaining liquidity. D) Increasing cash flow. Show Answer Correct Answer: A) Maximizing profits. ← 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