This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 43 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 43 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The company uses this account when it reports sales of goods, generally under cost of goods sold in the income statement. A) Balance sheet. B) Current Liabilities. C) Assets. D) Inventory. Show Answer Correct Answer: D) Inventory. 2. Which of the following are correct advantages of the IRR approach to investment appraisal, and which are not?1. Clear decision rule2. Takes into account the time value of money3. Assumes funds are reinvested at the IRR4. Considers the whole project A) Incorrect, Correct, Correct, Correct. B) Incorrect, , Correct, Incorrect, Correct,. C) Correct, Correct, Incorrect, Incorrect. D) Correct, Incorrect, Correct, Correct. Show Answer Correct Answer: B) Incorrect, , Correct, Incorrect, Correct,. 3. Which of the following is NOT a bond rating agency? A) S&P. B) Fitch. C) Moody's. D) Equifax. Show Answer Correct Answer: D) Equifax. 4. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960 If total current liabilities amounted to 19, 900. What is the quick ratio? A) 3.00. B) 2.55. C) 3.01. D) 2.56. Show Answer Correct Answer: D) 2.56. 5. Shares issued to the promoters of a company A) Deferred share. B) Right share. C) No Par Share. D) Sweat equity share. Show Answer Correct Answer: A) Deferred share. 6. A farmer wants to build a permanent building as a storage shed for its half an acre farm. What type of loan should the farmer apply for? A) Short-term loan. B) Medium-term loan. C) Long-term loan. D) None of above. Show Answer Correct Answer: B) Medium-term loan. 7. To identify the uses of funds in a firm over a time is by A) Decreasing in assets. B) Selling the stocks. C) Increasing in assets. D) Increasing in liabilities. Show Answer Correct Answer: C) Increasing in assets. 8. The following are some of the Flows of Business Transactions, EXCEPT: A) Preparing budget. B) Posting in Ledger. C) Document Prepared. D) Transaction Occurrence. Show Answer Correct Answer: A) Preparing budget. 9. In order to find out cost of equity capital under CAPM, which of the following is not required: A) Beta Factor. B) Market Rate of Return. C) Risk-free Rate of Interest. D) Market Price of Equity Share. Show Answer Correct Answer: D) Market Price of Equity Share. 10. Costs that changedisproportionatelywith changes inoutput levels. A) Fixed Costs. B) Variable Costs. C) Semi Variable Costs. D) None of above. Show Answer Correct Answer: C) Semi Variable Costs. 11. I like to help others, so I am happy to do this. A) Earning. B) Saving. C) Spending. D) Donating. Show Answer Correct Answer: D) Donating. 12. What is the purpose behind taxes? A) Pay for services in your community, state, and country. B) To help others when they are in need, due to circumstances. C) To provide safety (police, firefighters, military). D) All of the above. Show Answer Correct Answer: D) All of the above. 13. Optimal capital structure consists of both the mix of debt and equity A) True. B) False. Show Answer Correct Answer: A) True. 14. A wealthy woman just died and left her pet cats the following estate:$ 50, 000 per year for the next 15 years with the first cash flow today. At a discount rate of 3.2%, what is the feline estate worth in today's dollars? A) $ 774, 000.00. B) $ 607, 180.14. C) $ 601, 180.14. D) $ 608, 180.14. Show Answer Correct Answer: B) $ 607, 180.14. 15. Which of the following factors affecting the cost of capital can be controlled by the firm A) Tax rates. B) Dividend Policy. C) Level of Interest Rates. D) All of the Above. Show Answer Correct Answer: B) Dividend Policy. 16. Which of the following tasks would typically be carried out by a member of the financial management team? A) Depreciation of non-current assets. B) Review of overtime spending. C) Apportioning overheads to cost units. D) Evaluating proposed expansion plans. Show Answer Correct Answer: D) Evaluating proposed expansion plans. 17. The following are all features of equity shares except one: A) Right to control. B) Leads to speculations. C) Voting rights. D) Residual claims on assets. Show Answer Correct Answer: B) Leads to speculations. 18. The value of the business on a specific date is referred to as ..... A) Asset. B) Debt. C) Owner's equity. D) Liability. Show Answer Correct Answer: C) Owner's equity. 19. Real or a virtual document representing a legal agreement involving some sort-of monetary value A) Financial Asset. B) Financial Institution. C) Financial Debt. D) Financial Instruments. Show Answer Correct Answer: D) Financial Instruments. 20. Which term refers to the total amount of money earned by a business before deducting expenses? A) Turnover. B) Revenue. C) Expenditure. D) Profit (net). Show Answer Correct Answer: B) Revenue. 21. A firm's investment decision is also called the: A) Financing decision. B) Capital budgeting decision. C) Liquidity decision. D) None of these options. Show Answer Correct Answer: B) Capital budgeting decision. 22. The capital redemption reserve is created for the following reasons A) To maintain the capital intact. B) To safeguard the interest company's creditors. C) Both of the above. D) None of the above. Show Answer Correct Answer: C) Both of the above. 23. Finance can be defined as managing fund for future benefits of the business. A) True. B) False. Show Answer Correct Answer: A) True. 24. The cost of credit expressed as a yearly interest rate. A) Fixed APR. B) Annual Percentage Rate (APR). C) Penalty APR. D) Variable APR. Show Answer Correct Answer: B) Annual Percentage Rate (APR). 25. Assest we can see and touch A) Fixed Assest. B) Tangible Assets. C) Liquid Assets. D) Intangible Assest. Show Answer Correct Answer: B) Tangible Assets. 26. Jeremiah wants to save for a $ 750.00 stereo over 6 months, what will he need to save each month to make his goal? A) $ 105.00. B) $ 130.00. C) $ 125.00. D) $ 120.00. Show Answer Correct Answer: C) $ 125.00. 27. On a INCOME STATEMENT, if the "Gross Profit for the year is $ 58, 200; and the "Total Operating Expenses is $ 13, 780, and taxes is "$ 3, 356.25" what is the "NET INCOME after taxes" amount: A) $ 47, 776.25. B) $ 68, 623.75. C) $ 4, 106.375. D) $ 41, 063.75. Show Answer Correct Answer: D) $ 41, 063.75. 28. Capital budgeting is associated with A) Long term and short term assets. B) Fixed assets. C) Long term assets. D) Short term assets. Show Answer Correct Answer: C) Long term assets. 29. Secured and unsecured loan are loan: A) With collateral:without collateral. B) With guarantor:without guarantor. C) Without guarantor:with guarantor. D) Without collateral:with collateral. Show Answer Correct Answer: A) With collateral:without collateral. 30. What is the term for the potential cost of not taking a particular investment opportunity? A) Sunk cost. B) Fixed cost. C) Opportunity cost. D) Marginal cost. Show Answer Correct Answer: C) Opportunity cost. ← 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