This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Net working capital refers to excess of current liabilities over current assets. A) True. B) False. Show Answer Correct Answer: B) False. 2. Identification of investment proposals is the first step in capital budgeting process A) False. B) True. Show Answer Correct Answer: B) True. 3. For potential claims of damage or harm that result from a product. Coverage can be tailored to specific types of products, such as toys or machinery. A) Business interruption insurance. B) Vehicle insurance. C) Home-based businesses. D) Product liability insurance. Show Answer Correct Answer: D) Product liability insurance. 4. What is the primary goal of financial management? A) Increasing market share. B) Maximizing shareholder wealth. C) Minimizing expenses. D) Maximizing sales. Show Answer Correct Answer: B) Maximizing shareholder wealth. 5. The formula for compound value is: A) FV = PV (1+i)n. B) FVn= = (1+i)/PV. C) FV = PV/(1+i). D) FV = PV (1+i). Show Answer Correct Answer: A) FV = PV (1+i)n. 6. Take savings in the form of annualpremiums; invest these funds in stocks, bonds, real estate, andmortgages, and make payments to the beneficiaries of the insuredparties. A) Pension funds. B) Life insurance company. C) Credit unions. D) Mutual funds. Show Answer Correct Answer: B) Life insurance company. 7. Payment of cash dividends A) Investing Activities. B) Operating Activities. C) Financing Activities. D) None of above. Show Answer Correct Answer: C) Financing Activities. 8. The facts that a proprietorship, as a business, pays no corporate income tax, and that it is easily and inexpensively formed, are two key advantages to that form of business. A) True. B) False. Show Answer Correct Answer: A) True. 9. Operating Expenses include all of the following except..... A) R&D cost. B) Delivery dari Raw Materials. C) Administration cost. D) Advertising cost. Show Answer Correct Answer: A) R&D cost. 10. Which is NOT a benefit of Goal Setting? A) Provides clear picture of where you're headed. B) Helps you determine what you need to do to get there. C) Keeps you focused on what you need to learn. D) You are always distracted and cannot focus on it. E) Provides a way to measure your progress. Show Answer Correct Answer: D) You are always distracted and cannot focus on it. 11. Under this facility, the bank allows the borrower to withdraw cash against certain security. A) Overdraft. B) Cash credit. C) Bills of exchange. D) None of above. Show Answer Correct Answer: B) Cash credit. 12. Transferring debt from one credit card to another. A) Introductory rate. B) Late-payment fee. C) Credit Limit. D) Balance transfers. Show Answer Correct Answer: D) Balance transfers. 13. What does the "R" mean in SMART goals? A) Risk. B) Risk-Management. C) Results-Oriented. D) Retain. E) Report. Show Answer Correct Answer: C) Results-Oriented. 14. An increase in the debt ratio will generally have no effect on which of these items? A) Total risk. B) Market risk. C) Financial risk. D) Business risk. Show Answer Correct Answer: D) Business risk. 15. Banking regulations are essentially the same in all developed nations. A) True. B) False. Show Answer Correct Answer: B) False. 16. Capital markets are composed of ..... and ..... markets. A) Primary, secondary. B) Bonds, commodity. C) Primary, stock. D) Commodity, stock. Show Answer Correct Answer: A) Primary, secondary. 17. Funds are financial resources in the form of: A) Corporate capital. B) Business funds. C) Cash Equivalents. D) All of these. Show Answer Correct Answer: D) All of these. 18. Present value interest factor (PVIF) are usually less than 1.0 A) True. B) False. Show Answer Correct Answer: A) True. 19. Contains the account holder's account number and allows money (cash or check) to be deposited into the correct account. A) Deposit Slip. B) Check. C) Debit card. D) Check Register. Show Answer Correct Answer: A) Deposit Slip. 20. Modigliani-Miller Model supports the ..... A) Modern Approach. B) Net Income Approach. C) Traditional Approach. D) Net Operating Income Approach. Show Answer Correct Answer: D) Net Operating Income Approach. 21. Time value of money explains that: A) Value of rupee received today is worth more than it is in the future. B) Value of rupee received today is worth less than it is in the future. C) Value of rupee received today and at some other time in future is equal. D) None of them. Show Answer Correct Answer: A) Value of rupee received today is worth more than it is in the future. 22. Financial Planning Links A) Investment and Dividend decision. B) Dividend and financing Decisions. C) Investment and Financing Decisions. D) None. Show Answer Correct Answer: C) Investment and Financing Decisions. 23. The short-term liabilities that a business owes to creditors A) Assets. B) Accounts payable. C) Owner's equity. D) Liabilities. Show Answer Correct Answer: B) Accounts payable. 24. Among the following individuals, who sets the SMART goals? A) Puan Hadirah intends to buy a laptop which costs RM3, 000 as a birthday gift for her son. Therefore, she plans to save RM300 a month for ten months. B) Mr Hazry is a teacher with an income of RM3, 000 and plans to get married in two years' time. The wedding expenses are estimated to be RM30, 000. Therefore, he wants to save RM1, 000 a month for a period of two years. Besides that, he also plans to get a loan for the wedding expenses. C) Miss Hazwanyza wants to buy a house worth RM200, 000 if she has sufficient amount of money. D) None of above. Show Answer Correct Answer: A) Puan Hadirah intends to buy a laptop which costs RM3, 000 as a birthday gift for her son. Therefore, she plans to save RM300 a month for ten months. 25. You buy 6 pairs of socks for $ 10.98, what is the unit price? A) $ 1.38. B) $ 1.85. C) $ 1.90. D) $ 1.83. Show Answer Correct Answer: D) $ 1.83. 26. What is the purpose of a FICA tax? A) It provides health insurance for people who are retired or disabled. B) It helps the state government finance education projects. C) It helps local councils finance development projects. D) None of above. Show Answer Correct Answer: A) It provides health insurance for people who are retired or disabled. 27. Which one of the following statements concerning net working capital is correct? A) The degree in the cash balance is also decreases net working capital. B) Networking capital increases when inventory is bought for cash. C) Networking capital must be positive. D) All the above. Show Answer Correct Answer: A) The degree in the cash balance is also decreases net working capital. 28. Compounding is the process of calculating the: A) Present value of preset cash flows. B) Future value of future cash flows. C) Future value of present cash flows. D) Present value of future cash flows. Show Answer Correct Answer: C) Future value of present cash flows. 29. Dividend Decision is related to A) Right issue of share. B) Reinvestment requirement. C) Cash flow statement. D) None of the above. Show Answer Correct Answer: B) Reinvestment requirement. 30. Which of the following is NOT a common way businesses pay employees? A) Monthly. B) Weekly. C) Bi-weekly. D) Yearly. Show Answer Correct Answer: D) Yearly. ← PreviousNext →Related QuizzesManagement QuizzesFinance QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8Financial Management Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books