This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 50 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 50 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Finance managers need to interact constantly with A) Marketing managers. B) Accounting staff. C) Management information systems staff. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. You should log off when you're finished accessing your bank online. A) False. B) True. Show Answer Correct Answer: B) True. 3. Investment in Fixed Assets is-of decision- A) Investment. B) Financing. C) Dividend. D) None of these. Show Answer Correct Answer: A) Investment. 4. Which one of these is an investment? A) A mutual fund. B) Bank investments accounts. C) Cash. D) Real estate. E) Loans. Show Answer Correct Answer: A) A mutual fund. 5. Convert 7% to a decimal A) .07. B) .007. C) 7.0. D) None of above. Show Answer Correct Answer: A) .07. 6. Cooperative associations whose members aresupposed to have a common bond, such as being employees of thesame firm. Members' savings are loaned only to other members, generally for auto purchases, home improvement loans, and homemortgages. A) Mutual funds. B) Pension funds. C) Life insurance company. D) Credit union. Show Answer Correct Answer: D) Credit union. 7. The first step in monitoring of plan is: A) Suggesting corrective action. B) Review the plan. C) Identify Variances. D) None. Show Answer Correct Answer: B) Review the plan. 8. A form W-4 allows tax payers to claim certain allowances to determine what? A) The amount of children you have. B) The status of your citizenship. C) The amount of federal taxes with held from your paycheck. D) The eligibility of an employee. Show Answer Correct Answer: C) The amount of federal taxes with held from your paycheck. 9. If the current assets of a firm is Rs 120000, long term debt-Rs 80000, current liability Rs 40000 then Net working capital is- A) 120000. B) 80000. C) Zero. D) 40000. Show Answer Correct Answer: B) 80000. 10. The lifeblood of all Business concern. A) Loan. B) Finance. C) Credit. D) Tip. Show Answer Correct Answer: B) Finance. 11. All of these are ways to better control your debt EXCEPT A) Use credit card to spend lots of money. B) Prioritize your most important debts. C) Make a personal budget. D) Make a list of everything you owe. E) Get advice from professionals or organizations. Show Answer Correct Answer: A) Use credit card to spend lots of money. 12. What is another word for currency? A) Money. B) Paper. C) Candy. D) Bank. Show Answer Correct Answer: A) Money. 13. Your grandmother places $ 13, 000 into an account earning an interest rate of 7% per year. After 5 years the account will be valued at $ 18, 233.17. Which of the following statements is correct? A) The principal is $ 13, 000, the time period is 5 years, the future value is $ 18, 233.17, and the interest rate is 7%. B) The future value is $ 13, 000, the time period is 5 years, the principal is $ 18, 233.17, and the interest rate is 7%. C) The principal is $ 13, 000, the time period is 5 years, the future value is $ 18, 333.17, and the interest rate is 7%. D) The principal is $ 13, 000, the time period is 7 years, the future value is $ 18, 233.17, and the interest rate is 5%. Show Answer Correct Answer: A) The principal is $ 13, 000, the time period is 5 years, the future value is $ 18, 233.17, and the interest rate is 7%. 14. What is done to identify problems and overcome risks? A) Having a plan in place just in case you lose your job. B) Identify all financial problems and risks that may arise. C) Just identify investment losses. D) Avoid risks completely. Show Answer Correct Answer: B) Identify all financial problems and risks that may arise. 15. When interest rates are stated or given for loan repayments, it is assumed that they are ..... unless specifically stated otherwise. A) Effective annual rates. B) Annual percentage rates. C) APYs. D) Compound percentage rates. Show Answer Correct Answer: B) Annual percentage rates. 16. Choose the correct way to review and revise progress of a financial plan. A) Financial management does not need regular review. B) Review effects financial management on regular basis. C) Ask older people. D) Budget made must be followed despite the changing in income and needs. Show Answer Correct Answer: B) Review effects financial management on regular basis. 17. From a financial point of view, a company that decides to develop new product is making A) A cash flow decision. B) An investment decision. C) A financing decision. D) A capital structure decision. Show Answer Correct Answer: B) An investment decision. 18. If current liabilities are RM100, 000 and current assets are RM200, 000, what is the current ratio? A) NOT IN THE CHOICES. B) 2.00. C) 1.50. D) 1.20. E) 0.50. Show Answer Correct Answer: B) 2.00. 19. Which type of bank offers the entire range of banking services, such as checking and savings accounts, loans, and financial advice? A) Commercial Banks. B) Savings and Loan Associations. C) Credit Unions. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Advertising campaign is an example of A) Dividend decision. B) Short term investment decision. C) Financial decision. D) Long term investment decision. Show Answer Correct Answer: D) Long term investment decision. 21. Which item listed below is not funded by taxes in your community? A) Public library. B) Community center. C) Fast food restaurant. D) None of above. Show Answer Correct Answer: C) Fast food restaurant. 22. What practices can be done to reduce agency cost? A) Corporate governance. B) Dividend. C) Giving investment. D) Paying salary. Show Answer Correct Answer: A) Corporate governance. 23. Comment on the validity of the following statements, in relation to the Efficient Market Hypothesis. Statement 1:An inefficient market is one in which the value of securities is not always an accurate reflection of the available information. Statement 2:In a semi-strong form market the share price incorporates all past information and all publicly-available information. A) True, False. B) False, False. C) False, True. D) True, True. Show Answer Correct Answer: D) True, True. 24. Easy access to capital market allows firm to give more dividend A) False. B) True. Show Answer Correct Answer: B) True. 25. What is the present value of perpetual annuity of Rs. 1, 00, 000 p.a. at the discounting rate of 10%? A) Rs. 10, 00, 000. B) Rs. 1, 000. C) Rs. 1, 00, 00, 000. D) Rs. 10, 000. Show Answer Correct Answer: A) Rs. 10, 00, 000. 26. Loaf Company uses the direct method in determining the net cash provided by operating activities. During the year, operating expenses was P208, 000, prepaid expenses increased by P16, 000, and accrued expenses payable increased by P24, 000. Cash payments for operating activities amounted to: A) 200, 000. B) 224, 000. C) 216, 000. D) 208, 000. Show Answer Correct Answer: A) 200, 000. 27. Who is someone who acquires goods and services for his or her own personal use? A) Superman. B) Consumer. C) Producer. D) Market economy. E) Seller. Show Answer Correct Answer: B) Consumer. 28. Accounts receivable management based on the principle, as liquidity increases the return decreases? A) True. B) False. C) All of them. D) None of above. Show Answer Correct Answer: A) True. 29. The amount money a person expects to have in the future is called A) Simple Interest. B) Future Value. C) Present Value. D) Principal. Show Answer Correct Answer: B) Future Value. 30. The compound average annual rate of return assuming that the bond will be called by the issuer at some point prior to the maturity date, is the meaning of ..... A) Current Yield. B) Yield to Maturity. C) Yield to Call. D) Average Return. Show Answer Correct Answer: C) Yield to Call. ← 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