This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 38 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 38 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What happens to your "total left over savings" in the budgeting homework if your savings is negative? A) A negative sign appears beside balance. B) You did the assignment wrong. C) Your credit score lowers. D) Balance turns red. E) Your monthly income goes up. Show Answer Correct Answer: E) Your monthly income goes up. 2. How many months are in 4 years? A) 36. B) 48. C) 60. D) 24. Show Answer Correct Answer: B) 48. 3. An individual stock required return is equal to risk-free rate plus bearing risk premium is an explanation of A) Capital market line. B) Beta market line. C) Aggregate market line. D) Security market line. Show Answer Correct Answer: D) Security market line. 4. JCW Co is appraising an opportunity to invest in some new machinery that has the following cash flows.Initial investment $ 40, 000Net cash inflows for 5 years in advance $ 12, 000 per annumDecommissioning costs after 5 years $ 15, 000At a cost of capital of 10% what is the net present value of this project (to the nearest $ 100)? A) $ 725. B) $ 700. C) $ 720. D) Nil. Show Answer Correct Answer: B) $ 700. 5. Calculate the cash flow for Mr. RabbaniHitung aliran tunai Encik Rabbani. Active Income /Pendapatan Aktif:RM2, 000Passive Income / Pendapatan Pasif:RM350Fixed Expenses / Belanja tetap:RM 2, 300Variable Expenses / Belanja Berubah:RM 250 Then, determine whether it is Deficit or Surplus.Pastikan ialah lebihan atau kurangan. A) -800 (Deficit). B) 200 (Surplus / Excess). C) -200 (Deficit). D) 500 (Surplus / Excess). Show Answer Correct Answer: C) -200 (Deficit). 6. ..... are criteria a company uses to screen credit applicants in order to determine which of its customers should be offered credit and how much. A) Carrying costs. B) Ordering costs. C) Credit standards. D) Stockout costs. Show Answer Correct Answer: C) Credit standards. 7. A two-year investment of $ 200 is made today at an annual interest rate of 6%. Which of the following statements is true? A) The interest earned in year two is $ 12.00 and year one is $ 12.72. B) The interest earned in year one is $ 12.00 and year two half is $ 12.72. C) The interest earned in year one is $ 12.00 and year two is $ 12.72. D) The future value would be greater if the interest rate were lower. Show Answer Correct Answer: C) The interest earned in year one is $ 12.00 and year two is $ 12.72. 8. NI and n o i approach has been suggested by A) F w Taylor. B) David Durand. C) Marshall edgeworth. D) Fissure. Show Answer Correct Answer: B) David Durand. 9. What is the definition of Financial Management? A) Managing personal savings. B) Managing a company's financial resources and decisions. C) Managing stock market investments. D) Managing real estate assets. E) Public financial management. Show Answer Correct Answer: B) Managing a company's financial resources and decisions. 10. The following are types of financial institutions in Malaysia, except ..... A) Capital Market. B) Investment banks. C) Commercial banks. D) Shadow banking systems. Show Answer Correct Answer: A) Capital Market. 11. Fee paid for borrowing money A) Tax. B) Credit. C) Debit. D) Interest. Show Answer Correct Answer: D) Interest. 12. The summary of the operating, investing and financing activities of the firm is presented in the? A) Statement of Retained Earnings. B) Statement of Cash Flows. C) Statement of Comprehensive Income. D) Statement of Financial Position. Show Answer Correct Answer: B) Statement of Cash Flows. 13. "Decide the appropriate mix of debt and equity" . This statement is true for A) Dividend decision. B) Liquidity decision. C) Financing decision. D) Investment decision. Show Answer Correct Answer: C) Financing decision. 14. Short term sources of funds are those that will mature in at most 12 months and the interest is generally lower as compared to that of long term sources. Hence, this would lead to a lower financing cost. A) False. B) True. Show Answer Correct Answer: B) True. 15. It consists of recognized gains and losses that are not included in the income statement but are found in the equity section A) Income Statement. B) Statement of Changes in Equity. C) Statement of Financial Position. D) Comprehensive Income. Show Answer Correct Answer: D) Comprehensive Income. 16. 'Fundamental concept in investing, it combines variety of assets to reduce risk' pernyataan tersebut merupakan prinsip keuangan 'diversifikasi'. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 17. What is the purpose of financial planning? A) Tracking spending habits. B) Managing budgets over time. C) Developing strategies to increase wealth. D) Calculating taxes owed. Show Answer Correct Answer: C) Developing strategies to increase wealth. 18. When you pay off the principal and all of the interest at one time at the maturity date of the loan, we call this type of loan a/an ..... A) Compound loan. B) Interest-only loan. C) Amortized loan. D) Discount loan. Show Answer Correct Answer: D) Discount loan. 19. There is no operating leverage if there is no ..... A) Profit. B) Variable Cost. C) Sales. D) Fixed Cost. Show Answer Correct Answer: D) Fixed Cost. 20. Information from PT Maju is known as follows:Cost of Goods Sold:$ 500Sales:$ 3, 000Depreciation:$ 700Interest:$ 200How much is PT Maju's Earning Before Taxes? A) $ 3.000. B) $ 1.500. C) $ 200. D) $ 1.600. Show Answer Correct Answer: D) $ 1.600. 21. What is a common financial ratio used to assess liquidity? A) Return on Investment (ROI). B) Current Ratio. C) Debt-to-Equity Ratio. D) Price-Earnings Ratio . Show Answer Correct Answer: B) Current Ratio. 22. If there is a negative cash flow, we should reduce A) Fixed expenses. B) Variable expenses. C) Passive income. D) Active income. Show Answer Correct Answer: A) Fixed expenses. 23. What is the difference between a shareholder and a debtholder? A) Shareholders are the owners of a company whereas debtholders own debt issued by a company. B) Shareholders are not different from debtholders as both hold stakes in a company. C) Shareholders provide money when starting a company whereas debtholders supply funds during its course of business. D) Shareholders have less rights than debtholders who have the actual control over a company. Show Answer Correct Answer: A) Shareholders are the owners of a company whereas debtholders own debt issued by a company. 24. The objective of wealth maximization takes into account A) Amount of returns expected. B) Timing of anticipated returns. C) Risk associated with uncertainty of returns. D) All of the above. Show Answer Correct Answer: D) All of the above. 25. What financial reports are commonly prepared by financial managers? A) Sales reports and customer satisfaction surveys. B) Income statement and cash flow statement. C) Marketing plan and advertising budget. D) Report production planning and inventory. Show Answer Correct Answer: B) Income statement and cash flow statement. 26. Financial management is essential for businesses because it: A) Enables efficient allocation of resources and strategic decision-making. B) Enhances financial performance and profitability. C) Helps attract investors and secure external funding. D) Assists in managing financial risks and uncertainties. E) All of the above. Show Answer Correct Answer: E) All of the above. 27. Debt and equity differ in cost and risk. A) False. B) True. Show Answer Correct Answer: B) True. 28. Financial planning means ..... of financial activities. A) Later-determining. B) Not determining. C) Determining. D) Pre-determining. Show Answer Correct Answer: D) Pre-determining. 29. The financial activities which are performed regularly are known as: A) Non-recurring finance functions. B) Recurring finance functions. C) Both of these. D) None of these. Show Answer Correct Answer: B) Recurring finance functions. 30. The charge for borrowing money. A) Variable-rate APR. B) Annual Fee. C) Interest. D) Introductory rate. Show Answer Correct Answer: C) Interest. ← 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