This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 48 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 48 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc. A) Credit. B) Loan. C) Consumer. D) Personal Finance. Show Answer Correct Answer: D) Personal Finance. 2. Feature of financial analysis is to present the data contained in financial statements A) Easy form. B) Convenient and rational groups. C) Comparable form. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 3. Offering cash discounts to customer results in ..... ? A) Reducing the average collection period. B) Increasing sales. C) Increasing the average collection period. D) None of above. Show Answer Correct Answer: A) Reducing the average collection period. 4. The statement of cash flows A) Reports the periodic cash inflows and outflows in operating, investing and financing activities. B) Reports the revenues earned and expenses incurred by the firm during the period. C) Shows the company's total assets, broken down into current and non-current assets. D) Shows the company's capital structure for a period of time. Show Answer Correct Answer: A) Reports the periodic cash inflows and outflows in operating, investing and financing activities. 5. You place $ 500 into your checking account at First Bank and earn 1% APR on your deposit. Your professor borrows money at a rate of 8% from the same bank for a tuition loan for her son. Which of the following statements is true? A) You benefit from earning interest on your deposit, safety for your funds, and having a recognizable means for paying for your financial obligations without having to hold cash. B) You and your professor have an obvious conflict of interest because you have accounts at the same financial institution. C) The bank is criminally liable to you for paying an interest rate lower than the expected rate of inflation. D) Your professor is the only party to be made worse off by this example because she is the only party paying net interest. Show Answer Correct Answer: A) You benefit from earning interest on your deposit, safety for your funds, and having a recognizable means for paying for your financial obligations without having to hold cash. 6. Mr Patrick spends RM2 500 for household expenses every month. How much is the minimum emergency fund needed by him based on Bank Negara Malaysia suggestion? (Hint:Emergency fund is the amount Mr Patrick should have to spend on household if he suddenly doesn't have any income) A) RM7 500. B) RM15 000. C) RM10 000. D) RM12 000. Show Answer Correct Answer: B) RM15 000. 7. Financial management is mainly concerned with A) All aspects of acquiring and utilizing financial resources for firms activities. B) Arrangement of funds. C) Efficient Management of every business. D) Profit maximisation. Show Answer Correct Answer: A) All aspects of acquiring and utilizing financial resources for firms activities. 8. Which is not included in the advantages of deposit investment instruments? A) Income stability. B) Low return potential. C) Relatively easy. D) Safe, because it is guaranteed by LPS up to a certain limit. Show Answer Correct Answer: B) Low return potential. 9. You are responsible for your financial well-being A) True. B) False. Show Answer Correct Answer: A) True. 10. A notebook costs $ 7.50. Tax is 7%. Find the amount of tax for the notebook. A) .35. B) .55. C) .50. D) .53. Show Answer Correct Answer: D) .53. 11. Portion of Profit distributed to the shareholder is A) Dividend. B) Tax. C) Earnings. D) Interest. Show Answer Correct Answer: A) Dividend. 12. The fixed capital requirement of a business involving labour intensive production will be A) Less. B) More. C) Same. D) None of the above. Show Answer Correct Answer: A) Less. 13. The discount factor used to appraise capital investment decisions is a measure of: A) The current high street interest rate. B) The opportunity cost of capital of the business. C) The current inflation rate. D) The opportunity cost of capital of all businesses in the same industry. Show Answer Correct Answer: B) The opportunity cost of capital of the business. 14. Which of the following investments has a larger future value:Investment A, a $ 1, 000 investment earning 5% per year for 6 years, or Investment B, a $ 500 investment earning 10% per year for 6 years, with a bonus of an extra $ 500 added at the end of the sixth year? A) Investment B, with a future value of $ 1, 386. B) Investment A, with a future value of $ 1, 386. C) Investment B, with a future value of $ 1, 886. D) Investment A, with a future value of $ 1, 340. Show Answer Correct Answer: A) Investment B, with a future value of $ 1, 386. 15. Which market directly contributes for capital formation and increase in capital of firms? A) (a) Primary market. B) (b) Secondary market. C) C) Both (a) and (b). D) (d) None of the above. Show Answer Correct Answer: A) (a) Primary market. 16. Which of the following is NOT an example of an equity market transaction? A) Mary sells her shares of Apple stock. B) Mark contacts his broker and requests a purchase of IBM bonds. C) Sahid buys shares of a small company stock traded on the NASDAQ. D) All of the above are equity market transactions. Show Answer Correct Answer: B) Mark contacts his broker and requests a purchase of IBM bonds. 17. Suppose you want to set up recurring payments for your mortgage that is due on the 15th of each month, which is the best method of payment? A) Cash (in person). B) Automatic Draft. C) Check. D) None of above. Show Answer Correct Answer: B) Automatic Draft. 18. Which of the following statements is/are correct?(1) Factoring with recourse provides insurance against bad debts(2) The expertise of a factor can increase the efficiency of trade receivables management for a company A) 2 only. B) 1 only. C) Neither 1 nor 2. D) 1 and 2. Show Answer Correct Answer: A) 2 only. 19. What type of class is financial management? A) An easy A. B) An AP class. C) A Q1 course. D) A hard class. E) A pass/fail class. Show Answer Correct Answer: C) A Q1 course. 20. What type of budget plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable? A) Operating. B) Balance. C) Direct. D) Start-up. Show Answer Correct Answer: D) Start-up. 21. The additional risk placed on the common stockholders as a result of the decision to finance with debt A) Asterisk. B) Systemic risk. C) Financial risk. D) Business risk. Show Answer Correct Answer: C) Financial risk. 22. Assest easily converted into cash A) Fixed Asset. B) Liquid Assets. C) Cash. D) Current Asset. Show Answer Correct Answer: B) Liquid Assets. 23. The main types of banks include ..... A) Commodity banks, Silver and Gold Associations, and Credit Onions. B) Cooperative banks, Salt and Pepper Associations, and Cranberry Onions. C) Commercial banks, Saving and Loan Associations and Credit Unions. D) Credit Unions, Community banks, and Mortgage Companies. Show Answer Correct Answer: C) Commercial banks, Saving and Loan Associations and Credit Unions. 24. Shareholders current wealth in a company is equal to ..... X ..... A) No of shares x face value of shares. B) No of shares x Profit per share. C) No of shares x Market price per share. D) Face value of shares x Market price per share. Show Answer Correct Answer: C) No of shares x Market price per share. 25. Merger and acquisition in unrelated industries are called A) Horizontal merger. B) Vertical mergers. C) Conglomerate merger. D) Privatisation. Show Answer Correct Answer: C) Conglomerate merger. 26. The insurance premium against fire and theft of inventories is regarded of following cost? A) Carrying cost. B) Ordering cost. C) Storage cost. D) All the above. Show Answer Correct Answer: C) Storage cost. 27. This type of share allows shareholders to convert current shares to equity shares. A) Irredeemable preference Share. B) Convertible preference share. C) Cumulative preference share. D) Non-cumulative preference share. Show Answer Correct Answer: B) Convertible preference share. 28. What is the main disadvantage of a corporation? A) Limited liability. B) Difficulty of transferring ownership. C) Double taxation. D) Unlimited life. Show Answer Correct Answer: C) Double taxation. 29. The acronym COGS stands for: A) Cost of goods sold. B) Creditors of Goods Tax. C) Capital outstanding GST. D) None of the above. Show Answer Correct Answer: A) Cost of goods sold. 30. When was Byju's founded? A) 2013. B) 2010. C) 2011. D) 2012. Show Answer Correct Answer: C) 2011. ← 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