This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 40 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 40 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Gross working capital refers to firms investment in ..... ? A) Current liability. B) Working capital. C) Current assets. D) None of these. Show Answer Correct Answer: C) Current assets. 2. Wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing. A) Consumer. B) Seller. C) Capital. D) Demand. Show Answer Correct Answer: C) Capital. 3. A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as A) Amortized loan. B) Repaid payments. C) Depreciated loan. D) Appreciated loan. Show Answer Correct Answer: A) Amortized loan. 4. Equity financing designed specially for funding start ups and high technology projects A) Forfaiting. B) Seed capital. C) Bridge finance. D) Venture capital. Show Answer Correct Answer: D) Venture capital. 5. Based on the SMART concept, what is the meaning of Specific? A) Have a fixed time-bound. B) Have a specific goal. C) Measurable. D) Goal is attainable. Show Answer Correct Answer: B) Have a specific goal. 6. Liquidity decision often relates to ..... A) Current liabilities and non-current assets. B) Current assets and non-current liabilities. C) Non-current assets and non-current liabilities. D) Current assets and current liabilities. Show Answer Correct Answer: D) Current assets and current liabilities. 7. Firm having higher degree of operating efficiency require higher amount of working capital A) False. B) True. Show Answer Correct Answer: B) True. 8. Necessary if using company-owned vehicles. If you or employees use personal vehicles for business, personal insurance provides coverage in case of an accident. A) Vehicle insurance. B) Home-based businesses. C) Business interruption insurance. D) Product liability insurance. Show Answer Correct Answer: A) Vehicle insurance. 9. Which is an example of a short term goal? A) Saving for 2 months for a $ 80 dollar outfit?. B) Saving 5 years fir a $ 3000 dollar trip. C) Saving 3 years for a down payment on a car. D) None of above. Show Answer Correct Answer: A) Saving for 2 months for a $ 80 dollar outfit?. 10. All financial intermediaries are banks A) False. B) True. Show Answer Correct Answer: A) False. 11. What is NOT a Financial Report is: A) Laporan Neraca (Balance Sheet). B) Profit and Loss Report (Income Statement). C) Laporan Arus Kas (Cash Flow Statement). D) Working Capital Report (Net working Capital Statement). Show Answer Correct Answer: D) Working Capital Report (Net working Capital Statement). 12. All financial decisions are taken considering A) Current year's revenue. B) Positive cashflows. C) NPV. D) Current year's profit. Show Answer Correct Answer: C) NPV. 13. Choose the correct way to evaluate financial position. A) Balance sheet. B) Budget. C) Credit statement. D) Credit flow. Show Answer Correct Answer: A) Balance sheet. 14. When the Credit period is increased from 30 days to 60 days in response to market expectations, its implications would be decrease in debtors. A) True. B) False. C) May be. D) None. Show Answer Correct Answer: B) False. 15. Measuring data counts and are expressed by numbers A) Qualitative. B) Quantitative. C) Value. D) None of these. Show Answer Correct Answer: B) Quantitative. 16. Commercial bank customers are also called "members" . A) True. B) False. Show Answer Correct Answer: B) False. 17. In discounting, the table value goes on increasing with the increase in the rate of Interest and number of year. A) False. B) True. Show Answer Correct Answer: A) False. 18. The payment terms 2/10, n/30 tell us that: A) A 10% discount will be awarded if the payment is made within 2 days of invoice date; otherwise, the full amount is payable within 30 days of invoice date. B) A 2% discount will be awarded if the payment is made within 10 days of invoice date; otherwise, the full amount is payable within 30 days of invoice date. C) A 2% discount will be awarded if the payment is made within 10 months of invoice date; otherwise, the full amount is payable within 30 months of invoice date. D) A 0.5% discount will be awarded if the payment is made within 10 days of invoice date; otherwise, the full amount is payable within 30 days of invoice date. Show Answer Correct Answer: B) A 2% discount will be awarded if the payment is made within 10 days of invoice date; otherwise, the full amount is payable within 30 days of invoice date. 19. Which of the following is an objective of financial planning? A) Ensuring enough funds are available at the right time. B) NOT TO RAISE UNNECESSARY FUNDS. C) BOTH. D) None of above. Show Answer Correct Answer: C) BOTH. 20. Cash turnover is an average time required to acquire inventory, sell it and collect money from it. A) False. B) True. Show Answer Correct Answer: A) False. 21. Q9) What is the role of a financial manager in managing risk? A) Avoiding all risks. B) Accepting all risks. C) Identifying and mitigating risks. D) Transferring all risks to shareholders. Show Answer Correct Answer: C) Identifying and mitigating risks. 22. What is an example of a ownership investment? A) Savings account. B) Stocks. C) Bonds. D) Money market account. E) None of the above. Show Answer Correct Answer: B) Stocks. 23. Which of the following is least likely to be considered a role of financial statement analysis? A) Determining whether to invest in the company's securities. B) Assessing the management skill of the company's executives. C) To make economic decisions. D) None of above. Show Answer Correct Answer: B) Assessing the management skill of the company's executives. 24. Sara wants to save up to buy a kindle for reading. A kindle costs about $ 104.00 If Sara earns $ 10 a week for watering her neighbors trees how many weeks does Sara have to work to earn enough money? A) 5 weeks. B) 20 weeks. C) 10 weeks. D) 11 weeks. E) 15 weeks. Show Answer Correct Answer: D) 11 weeks. 25. Money paid to the state and federal government so that the government can function is ..... A) Debt. B) Taxes. C) Income. D) Salary. Show Answer Correct Answer: B) Taxes. 26. The total amount taken from the employee's paycheck for medical benefits. A) FICA. B) Medicaid. C) Medical. D) Medicare. Show Answer Correct Answer: C) Medical. 27. The Appropriate objectives of enterprises is A) Maximization of sales. B) Maximization of owner's wealth. C) Maximization of profits. D) None of above. Show Answer Correct Answer: B) Maximization of owner's wealth. 28. Disadvantages of the NPV method include: A) Tells whether firm value is increased. B) Considers all cash flows. C) Requires estimate of cost of capital. D) Considers the time value of money. Show Answer Correct Answer: C) Requires estimate of cost of capital. 29. Which one of the following is NOT a retirement plan? A) I-9. B) Roth IRA. C) 403B. D) IRA. E) 401k. Show Answer Correct Answer: A) I-9. 30. It is a type of financial institution that specializes in offering savings accounts and originating home mortgages for consumers. A) Thrift Bank. B) Rural Bank. C) Universal Bank. D) Commercial Bank. Show Answer Correct Answer: A) Thrift Bank. ← 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