This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 51 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 51 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a long-term source of finance for a company? A) Trade credit. B) Bank overdraft. C) Short-term loans. D) Equity shares. Show Answer Correct Answer: D) Equity shares. 2. Alexis bought a new skirt and blouse with a purchase price of $ 100.00. Calculate 6.75% sales tax for her purchase. A) $ 6.75. B) $ 10. C) $ 13. D) None of above. Show Answer Correct Answer: A) $ 6.75. 3. Is a company issue bonus shares the debt equity ratio A) A. Remain unaffected. B) B will be affected. C) C. Will improve. D) D. None of the above. Show Answer Correct Answer: C) C. Will improve. 4. This is the money that is spend on goods, services, and bills. A) Long term goals. B) Expenditures. C) Impulse buying. D) Needs. Show Answer Correct Answer: B) Expenditures. 5. Its main role is to act as financial intermediary. A) Evaluating Investments. B) Finance. C) Financial Institution. D) Financial Management. Show Answer Correct Answer: C) Financial Institution. 6. ..... is simply the interest earned in subsequent periods on the interest earned in prior periods. A) Quoted interest. B) Anticipated interest. C) Compound interest. D) Simple interest. Show Answer Correct Answer: C) Compound interest. 7. The statement of cash flows segregates cash inflows and outflows by: A) Operating, Financing and Investing Activities. B) Operating and Investing Activities. C) Financing and Investing Activities. D) Operating and Financing Activities. Show Answer Correct Answer: A) Operating, Financing and Investing Activities. 8. The managerial process which is concerned with the planning and control of financial resources is called as: A) Control function. B) Finance function. C) Management function. D) None of these. Show Answer Correct Answer: B) Finance function. 9. .Long term finance is required for ..... A) Current assets. B) Fixed assets. C) Intangible assets. D) None of these. Show Answer Correct Answer: B) Fixed assets. 10. The expected return on a riskless asset is greater than zero due to A) An expected return for delaying consumption. B) An expected return for taxes. C) An expected return for opportunity costs. D) Irrational investors who believe risk is always present. Show Answer Correct Answer: A) An expected return for delaying consumption. 11. One of the goals of financial management is to maximize profits. What does it mean? A) Maximizing existing value so that the greater the profits obtained by a company. B) Improving the function of the assets owned so that maximum added value is obtained by the company. C) Increase the company's profit value from all assets owned. D) Maximizing profits, which through the right policies can maximize company profits in the long term. Show Answer Correct Answer: D) Maximizing profits, which through the right policies can maximize company profits in the long term. 12. Dividend paid in the form of shares is called A) Right shares. B) Bonus shares. C) Property dividend. D) None of the above. Show Answer Correct Answer: B) Bonus shares. 13. How many percentage should a person save from their monthly income? A) 5%. B) 20%. C) 8%. D) 10%. Show Answer Correct Answer: D) 10%. 14. The matiurity period of ICDs range from A) 1 year to 2 year. B) One day to 6 months. C) 1 year to 5 year. D) Up to 1 year. Show Answer Correct Answer: B) One day to 6 months. 15. What is not included in the Liquidity ratio is A) Average Collection Period. B) Quick Ratio. C) Cash Ratio. D) Current Ratio. Show Answer Correct Answer: A) Average Collection Period. 16. Retirement of entity-issued bonds A) Operating Activities. B) Financing Activities. C) Investing Activities. D) None of above. Show Answer Correct Answer: B) Financing Activities. 17. Through investment the business will earn interest. A) Money Has Time Value. B) Risk Return Trade Off. C) Individuals Respond to Incentives. D) Cash Flows Are Source of Values. Show Answer Correct Answer: B) Risk Return Trade Off. 18. Individuals giving out small amounts of money to a project in return for something A) Peer-to-peer lending. B) Reward-based crowdfunding. C) Donation-based crowdfunding. D) None of above. Show Answer Correct Answer: B) Reward-based crowdfunding. 19. The portion of a company's net profit that is distributed to shareholders is known as? A) Net profit. B) Dividends. C) Retained earning. D) Paid-up capital. Show Answer Correct Answer: B) Dividends. 20. A schedule of how much producers are willing and able to produce and sell at a price A) Profit. B) Services. C) Supply. D) Demand. Show Answer Correct Answer: C) Supply. 21. High interest rates occur if you dont pay off ..... ? A) The CIA. B) The IRS. C) Prof. Dinter. D) Miss credit card loans. E) Your gym membership. Show Answer Correct Answer: C) Prof. Dinter. 22. CW Co is appraising an opportunity to invest in some new machinery that has the following cash flows.Initial investment $ 40, 000Net cash inflows for 5 years in advance $ 12, 000 per annumDecommissioning costs after 5 years $ 15, 000What is the internal rate of return of the project, calculated using discount factors for 10% and 15% (to the nearest whole %)? A) 10%. B) 12%. C) 15%. D) 11.5%. Show Answer Correct Answer: B) 12%. 23. The primary goal of financial manager is A) To maximize the shareholder's wealth. B) To minimize risk. C) To maximise return. D) To maximize the stakeholder's wealth. Show Answer Correct Answer: A) To maximize the shareholder's wealth. 24. Which factor does not effect the dividend decision A) Rate of dividend. B) Rate of dividend of the competitor firm. C) Risk. D) History of dividend. Show Answer Correct Answer: C) Risk. 25. What is it called when a person or business is unable to pay their debts? A) Unsecured debt. B) Total assets. C) Bankruptcy. D) Debt consolidation. E) Secured debt. Show Answer Correct Answer: C) Bankruptcy. 26. Minimum rate of return that a project must earn to increase firm value A) Quality cost. B) Cost of opportunity. C) Cost of capital. D) Implicit cost. Show Answer Correct Answer: C) Cost of capital. 27. ..... are documents that are used to report information about the business at the end of the accounting cycle. A) Accounts payables. B) Income statements. C) Current assets. D) Financial statements. Show Answer Correct Answer: D) Financial statements. 28. Funds raised from this source dilutes management's holding A) Debentures. B) Preference shares. C) Equity shares. D) None. Show Answer Correct Answer: C) Equity shares. 29. ..... type of financing is usually done for financing high risky businesses A) Factoring. B) Venture capital. C) Hire purchase. D) Leasing. Show Answer Correct Answer: B) Venture capital. 30. Which TWO of the following are examples of financial objectives that a company might choose to pursue? A. Dealing honestly and fairly with customers on all occasions B. Provision of good working conditions and industrial relations C. Earning above a particular level of return on capital employed D. Producing environmentally friendly products E. Restricting the level of gearing to below a specified target level A) A & E. B) C & E. C) B & D. D) A & C. Show Answer Correct Answer: B) C & E. ← 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