This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 36 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 36 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. That part of management which is connected with the financial activities iscalled ..... management. A) Personnel. B) Financial. C) Production. D) All the above. Show Answer Correct Answer: B) Financial. 2. The size of assets, the profitability and competitiveness are affected by which decision in financial management A) Working Capital Decision. B) Financing Decision. C) Investment Decision. D) Dividend Decision. Show Answer Correct Answer: C) Investment Decision. 3. An increase in firm's collection period means A) The firm's current ratio is increasing. B) The firm's receivables turnover ratio is increasing. C) The firm's collection expenses have fallen. D) The firm has become less efficient in the collection of its receivables. Show Answer Correct Answer: D) The firm has become less efficient in the collection of its receivables. 4. What agency is responsible for collecting federal income taxes for the US government? A) Internal Revenue Service (IRS). B) NC Department of Revenue. C) NC Department of Agriculture. D) None of above. Show Answer Correct Answer: A) Internal Revenue Service (IRS). 5. If the company's current ratio is 5. If the company paid $ 100 of accounts payable using its cash. The new current ratio will A) Be the same. B) Decrease. C) Increase. D) Can not be determined. Show Answer Correct Answer: C) Increase. 6. How much is Puan Soffia's monthly saving if she wanted to pay the down payment for a RM650, 000 house in six years? A) RM900.00. B) RM1111.78. C) RM1000.78. D) RM902.78. Show Answer Correct Answer: D) RM902.78. 7. Financial institutions and markets A) Are the organized financial intermediaries and the forums that promote the cycle of money. B) Compose the set of financial activities that support the operations of a business. C) Are the activities centered on the purchase and sale of financial assets. D) Are concerned only with the addition of a multinational element to all finance activities. Show Answer Correct Answer: A) Are the organized financial intermediaries and the forums that promote the cycle of money. 8. A Current asset is cash or any asset that will be exchanged for cash or used within one year. A) True. B) False. Show Answer Correct Answer: A) True. 9. Short term funds include: A) Hybrid financing, debt financing, long term finance. B) Trade credit, debt financing, equity financing. C) Debt financing, equity financing, hybrid financing. D) Trade credit, secured term loan and unsecured term loan. Show Answer Correct Answer: D) Trade credit, secured term loan and unsecured term loan. 10. Which of the following is not one of the three decisions to be taken by a finance manager? A) Pricing decision. B) Financing Decision. C) Investment Decision. D) Dividend Decision. Show Answer Correct Answer: A) Pricing decision. 11. The time value of money concept means money paid out or received in the future is not equivalent to money paid or received today. A) True. B) False. Show Answer Correct Answer: A) True. 12. What is the purpose of a "master budget" in financial management? A) Monitoring day-to-day expenses. B) Estimating overall company profitability. C) Controlling long-term investments. D) Analyzing short-term market trends. Show Answer Correct Answer: B) Estimating overall company profitability. 13. Which of the following is/ are example(s) of financial goal(s)? A) Start an emergency fund. B) Pay off credit card. C) Save for children's education. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. Derivatives markets involve financial instruments with values derived from underlying assets or indices. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 15. The process of planning, evaluating, selecting, and managing the financing of long-term operating projects of the company is termed ..... A) Capital budgeting. B) Accounts receivable management. C) Working capital management. D) Capital structure. Show Answer Correct Answer: A) Capital budgeting. 16. In what area of a typical family budget do people spend most of their money? A) Utilities. B) Housing. C) Food. D) Transportation. Show Answer Correct Answer: B) Housing. 17. Investment decision is also known as capital structure decision. A) FALSE . B) TRUE. Show Answer Correct Answer: A) FALSE . 18. What does CEO mean? A) Chief Education Officer. B) Committee of Essential Operations. C) Chief Executive Officer. D) Central Executive Office. Show Answer Correct Answer: C) Chief Executive Officer. 19. Which of the following statements about Generally Accepted Accounting Principles (GAAP) is NOT true? A) GAAP is a set of rule-based accounting standards established by the Financial Accounting Standards Board (FASB). B) GAAP sets out the standards, conventions, and rules that accountants must follow when preparing audited financial statements. C) GAAP is complex, providing more than 150 "pronouncements" as to how to account for different types of transactions. D) All of the statements above are true. Show Answer Correct Answer: D) All of the statements above are true. 20. The bank issued card that deducts money directly from the checking account is A) Credit card. B) Savings account. C) Debit card. D) Money market. Show Answer Correct Answer: C) Debit card. 21. Earning Per Share equals to: A) Earning after tax / no. of debentures. B) Earning after tax / no. of Preference shares. C) Earning after tax / no. of Equity shares. D) None of the above. Show Answer Correct Answer: C) Earning after tax / no. of Equity shares. 22. What does VAT (Value Added Tax) represent in business transactions? A) A tax on employee salaries. B) A tax on company profits. C) A tax on the value added at each stage of production. D) A tax on imported goods. Show Answer Correct Answer: C) A tax on the value added at each stage of production. 23. Debt causes a dilution of control A) False. B) True. Show Answer Correct Answer: A) False. 24. Is an organization which underwrites securities for companies advises in various activities A) Merchant. B) Leasing. C) Mutual funds. D) None of above. Show Answer Correct Answer: A) Merchant. 25. If Maddy's gross pay is $ 500 this pay period and the Social Security tax is 6.2%, how much Social Security tax will be deducted from Maddy's paycheck? A) $ 31.00. B) $ 52.15. C) $ 6.50. D) None of above. Show Answer Correct Answer: A) $ 31.00. 26. One of the scopes of financial management, namely: A) Decision to save at the bank. B) Investation decision. C) Production decisions. D) Income decision. Show Answer Correct Answer: B) Investation decision. 27. Who might provide expert advice on tax planning and financial strategies to a business? A) Operations Manager. B) Human Resources Manager. C) Financial Analyst. D) Management Consultant. Show Answer Correct Answer: C) Financial Analyst. 28. A detailed plan for a business' financial needs A) Budget. B) Inventory. C) Accounts. D) Expenses. Show Answer Correct Answer: A) Budget. 29. Current Ratio is computed as: A) Total Current Assets. B) Product of Current Assets and Current Liabilities. C) Current Assets/ Current Liabilities. D) Quick Assets and Quick Liabilities. Show Answer Correct Answer: C) Current Assets/ Current Liabilities. 30. Four years ago, Robert's annual salary was $ 52, 500. Today, he earns $ 73, 800. What has been the average annual rate of growth of Robert's salary? A) $ 5, 325 per year. B) 8.89%. C) 10.38%. D) 41.52%. Show Answer Correct Answer: B) 8.89%. ← 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