This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following best identifies the four main areas of finance? A) Corporate finance, investments, financial institutions and markets, international finance. B) Corporate finance, investments, capital structure, international finance. C) Exchange rate management, investments, financial institutions and markets, international finance. D) Corporate finance, capital budgeting, financial institutions and markets, regulation. Show Answer Correct Answer: A) Corporate finance, investments, financial institutions and markets, international finance. 2. Which one of the following is false regarding simulations? A) They can consider several variables changing simultaneously. B) They have a clear decision rule. C) They give a better understanding of risk. D) They describe a range and probability of possible outcomes. Show Answer Correct Answer: B) They have a clear decision rule. 3. June 2015:The net profit of a company is ₹ 2, 00, 000, preference dividend ₹ 25, 000, and taxes paid ₹ 15, 000. The number of equity shares is 1, 00, 000. The earnings per share (EPS) is- A) ₹ 1.75. B) ₹ 1.5. C) ₹ 1.6. D) ₹ 2. Show Answer Correct Answer: C) ₹ 1.6. 4. Long term financing is the money that will be used for longer than one year. A) False. B) True. Show Answer Correct Answer: B) True. 5. Average Sale Period can be computed by dividing A) 365 days/Accounts Receivable Turnover Ratio. B) 365 days/Inventory Turnover Ratio. C) 366 days/Inventory Turnover Ratio. D) 366 days/Accounts Receivable Turnover Ratio. Show Answer Correct Answer: B) 365 days/Inventory Turnover Ratio. 6. Which of the following is NOT the characteristics of agricultural finance? A) Valuation of the firm. B) A sub-system of the business system which has other subsystems. C) Involves risk-return trade-off decisions on investment. D) Financial affects the survival, growth and suitality of the firm. Show Answer Correct Answer: D) Financial affects the survival, growth and suitality of the firm. 7. Finance Functions are A) Planning for funds. B) Raising of funds. C) Allocation of resources. D) All the above. Show Answer Correct Answer: D) All the above. 8. The Bottom-up approach to setting goals is: A) Goal set by management. B) Goal set by financial manager. C) Goal set keeping in mind employees. D) All of above. Show Answer Correct Answer: C) Goal set keeping in mind employees. 9. Agency problem arises when managers deviate from the goal of maximization of shareholder wealth by placing their personal goals ahead of the goals of shareholders. A) True. B) False. Show Answer Correct Answer: A) True. 10. Setting up direct deposit can give you faster access to your money A) False. B) True. Show Answer Correct Answer: B) True. 11. ..... include banks, insurance companies, and lending institutions, among others. A) Financial institutions. B) Finance management. C) Finance. D) Financial management. Show Answer Correct Answer: A) Financial institutions. 12. Which of the following can be utilised for the redemption of preference shares of a company out of profit A) Capital redemption reserve account. B) Development rebate reserve account. C) Share forfeited account. D) Dividend equalisation reserve. Show Answer Correct Answer: D) Dividend equalisation reserve. 13. This is one of the functions of a Financial Manager which include making decisions on how to fund long term investment and working capital. A) Operating. B) Dividend policies. C) Investing. D) Financing. Show Answer Correct Answer: D) Financing. 14. This ratio is used to measure the liquidity of the firm's receivable. A) Quick Ratio. B) Inventory Turnover Ratio. C) Accounts Receivable Turnover Ratio. D) Current Ratio. Show Answer Correct Answer: C) Accounts Receivable Turnover Ratio. 15. Why is it important to save money? A) Its not a good idea to save money. B) Saving for a goal or something special in the future. C) Because your parents say so. D) So you can spend it faster. Show Answer Correct Answer: B) Saving for a goal or something special in the future. 16. ..... is the lifeblood of a business. A) Corporate Financial Management. B) Finance. C) Financial Management. D) Finance Manager. Show Answer Correct Answer: B) Finance. 17. With the help of financial planning capital can be made available at ..... cost.(a) (b) (c) (d) A) Minimum. B) Zero. C) More. D) Medium. Show Answer Correct Answer: A) Minimum. 18. What financial statement provides a snapshot of a company's financial position at a specific point in time? A) Income statement. B) Cash flow statement. C) Statement of retained earnings. D) Balance sheet. Show Answer Correct Answer: D) Balance sheet. 19. Name of state form to file your taxes for the year. A) W-2. B) D-400. C) W-4. D) 1040EZ. Show Answer Correct Answer: B) D-400. 20. What does the agency problem refer to? A) The conflict that exists between the board of directors and the employees of the firm. B) The problem associated with financial managers and Internal Revenue agents. C) The conflict that exists between stockbrokers and investors. D) The problem that results from potential conflicts of interest between the manager of a business and the stockholders. Show Answer Correct Answer: D) The problem that results from potential conflicts of interest between the manager of a business and the stockholders. 21. Dillon works by stamping metal sheets into bumpers for cars. He gets payed $ 0.70 per bumper completed. If he completed 120 bumpers in a 10 hour shift, how much does he make? A) $ 84. B) $ 284. C) $ 120. D) None of above. Show Answer Correct Answer: A) $ 84. 22. If ICR is high, firm prefers A) (a) Debt. B) (b) Equity. C) C) Both (a) and (b). D) (d) None of the above. Show Answer Correct Answer: A) (a) Debt. 23. The highest policy making body in a corporation. A) Chief Executive Officer. B) Shareholders. C) President. D) Board of Directors. Show Answer Correct Answer: D) Board of Directors. 24. An obligation of repayment owed by one party (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the original loan amount plus interest A) Debit. B) Loan. C) Debt. D) Credit. Show Answer Correct Answer: C) Debt. 25. Which of the following is not a type of charitable giving? A) Stocks and securities. B) Cash. C) Valuable assets. D) Planned giving. E) Desired retirement age. Show Answer Correct Answer: E) Desired retirement age. 26. The ratio to measure the effectiveness of a company's operations in generating profits is: A) Debt to Asset Ratio. B) Net Profit Margin. C) Benefit Cost Ratio. D) Liquidity Ratio. Show Answer Correct Answer: B) Net Profit Margin. 27. Under this service, lockers are provided to the public in various sizes on payment of fixed rent. A) Locker service. B) Credit card. C) Venture capital. D) Bancassurance. Show Answer Correct Answer: A) Locker service. 28. Which of the following is a way to meet yout financial needs? A) Do nothing. B) Fully rely on your parents. C) Create a budget. D) Shop constantly. E) Don't save your money. Show Answer Correct Answer: C) Create a budget. 29. Cooperation among departments is vital to ensure the company move forward smoothly. Financial management covers multidimensional approaches such as the following: A) Financial management and economics. B) Financial management and human resource. C) Financial management and marketing. D) All answers are correct. Show Answer Correct Answer: D) All answers are correct. 30. ..... varies inversely with profitability. A) Risk. B) Trade. C) Liquidity. D) Accounts. Show Answer Correct Answer: C) Liquidity. ← PreviousNext →Related QuizzesManagement QuizzesFinance QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8Financial Management Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books