This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 32 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 32 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Redeemable preference shares can be redeemed out of A) The proceeds of a fresh issue of shares. B) The sale proceeds of investment. C) Securities premium reserve. D) The proceeds of issue of debentures. Show Answer Correct Answer: A) The proceeds of a fresh issue of shares. 2. Having ALOT of money means you are important A) True. B) False. Show Answer Correct Answer: B) False. 3. In his traditional role the finance manager is responsible for ..... A) Efficient management of capital. B) Acquiring capital assets of the organization. C) Arrangement of financial resources. D) Proper utilisation of funds. Show Answer Correct Answer: C) Arrangement of financial resources. 4. What will happen to your credit rating if you don't pay your loan? A) Poor. B) Good. C) Outstanding. D) Needs improvement. Show Answer Correct Answer: A) Poor. 5. The main advantage of ARR A) Profit. B) Easy comparisons. C) Money. D) Ignores timing of cash inflow. Show Answer Correct Answer: B) Easy comparisons. 6. Which TWO of the following statements are correct? 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 4. Three E's are used as a performance measure to assess value of money in not for profit organisations. The three E's stand for economy, efficiency and environment A) 2 & 4. B) 1 & 3. C) 2 & 3. D) 1 & 4. Show Answer Correct Answer: C) 2 & 3. 7. Offering protection coverages to its existing clients (life and non-life) A) Locker sevices. B) Bancassurance. C) Credit card. D) Automated teller machine. Show Answer Correct Answer: B) Bancassurance. 8. In assessing the company's health level, we classify it into 3 categories, namely Healthy, Unhealthy and Unhealthy. The company code in the 'Very Healthy' category is: A) "BBB". B) " BB". C) " AA". D) "AAA". Show Answer Correct Answer: D) "AAA". 9. Multiple compounding period means A) Interest compounded more than once in a year. B) Interest is calculated for a number of years. C) Interest compounded anually. D) None of above. Show Answer Correct Answer: A) Interest compounded more than once in a year. 10. Which is not an example of an unexpected event? A) Breaking your arm. B) Car accident. C) Fire. D) Trip to DIsney World. Show Answer Correct Answer: D) Trip to DIsney World. 11. To open a federal or a state bank in the United States, the owners have to meet special requirements including applying for a "charter" from the federal or state government. A) True. B) False. Show Answer Correct Answer: A) True. 12. Which of the following is not a function of a finance manager? A) Investments. B) Appointment of financial personnel. C) Investor relations. D) Credit & collections. Show Answer Correct Answer: B) Appointment of financial personnel. 13. What will be the present value of Rs.40, 00, 000 receivable at the end of 3 years at an interest rate 7% A) 3004000. B) 3040000. C) 3004100. D) None. Show Answer Correct Answer: A) 3004000. 14. All of these make a good first impression except A) Showing excitement. B) Helping your coworkers. C) Keeping a good personal appearance. D) Seeking advice and improvement. E) Doing the minimum amount of work. Show Answer Correct Answer: E) Doing the minimum amount of work. 15. Which of the following is NOT on a checkbook register? A) Payment dates. B) Payee names. C) Bank account balance. D) Check numbers. E) Payment amounts. Show Answer Correct Answer: C) Bank account balance. 16. Process of moving cash flows to a later time period, is the meaning of ..... A) Future Value. B) Discounting. C) Compounding. D) Present Value. Show Answer Correct Answer: C) Compounding. 17. The R in SMART Goal stands for A) Respectful. B) Reasonable. C) Relevant. D) None of above. Show Answer Correct Answer: C) Relevant. 18. What is the only payment method that does not charge interest or fees? A) Currency (cash). B) Credit Card. C) Debit Card. D) None of above. Show Answer Correct Answer: A) Currency (cash). 19. What type of skills is financial management training designed to help cultivate? A) Financial planning and analysis. B) Cost analysis and budgeting. C) Risk management and forecasting. D) Marketing and customer service. Show Answer Correct Answer: A) Financial planning and analysis. 20. Based on the function of working assets in active capital companies is devided in to ..... A) Working capital and fixed capital. B) Current assets and fixed assets. C) Working capital and current assets. D) Fixed capital and fixed assets. Show Answer Correct Answer: A) Working capital and fixed capital. 21. PBP is calculated when the incomes or return are equal by the formula A) Original outlay/ uncovered amount of project. B) Year before full recovery+(Uncovered amt/ cash flow during the year). C) Original cost/ annual return of the project. D) None of above. Show Answer Correct Answer: C) Original cost/ annual return of the project. 22. The following are parts of the pyramid for managing finances, except: A) Emergency Fund. B) Debt Management. C) Income. D) Protection. Show Answer Correct Answer: C) Income. 23. One of the three fundamental financial statements and is key to both financial modeling and accounting. A) Assets. B) Balance Sheet. C) Equity. D) Management. Show Answer Correct Answer: B) Balance Sheet. 24. How do you know when abusive lending is taking place? A) When the lender is pressuring you to take a loan. B) When you have done your "due diligence" and the loan office does not badger you to sign for the loan. Show Answer Correct Answer: A) When the lender is pressuring you to take a loan. 25. ..... and ..... carry a fixed rate of interest and are to be paid off irrespective of the firm's revenues A) Debentures, Bonds. B) Dividends, Bonds. C) Debentures, Dividends. D) Dividends, Treasury notes. Show Answer Correct Answer: A) Debentures, Bonds. 26. Should be added with the hiring of your first employee to cover medical expenses as well as disability and death benefits. Even if employees perform low-risk work, such as in an office, claims could result from slip-and-fall injuries or repetitive motion injuries such as carpal tunnel syndrome A) Property insurance. B) Workers' compensation insurance. C) Professional liability insurance. D) None of above. Show Answer Correct Answer: B) Workers' compensation insurance. 27. An estimate of a business's financial outlook for each of the next five years. A) Budget. B) Owner's equity. C) Financial plan. D) Financial forecast. Show Answer Correct Answer: D) Financial forecast. 28. Which technique in financial management enable us to take procurement/sourcing decisions? A) Capital Budgeting. B) Working Capital Management. C) Ratio Analysis. D) Capital Structure. Show Answer Correct Answer: D) Capital Structure. 29. Sara worked an 8 hour shift and makes.12 per doll, she makes 80 dolls per hour, what was her gross pay for that day? A) $ 76.80. B) $ 60.00. C) $ 75.80. D) $ 80.76. Show Answer Correct Answer: A) $ 76.80. 30. The investment involve decision making on daily basis. This sentence refer to ..... A) Working capital investment. B) Capital investment. Show Answer Correct Answer: A) Working capital investment. ← 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