This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 52 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 52 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Housing is an example of which of the following: A) Income. B) Want. C) Desire. D) Need. Show Answer Correct Answer: D) Need. 2. What does the concept of 'present value' in time value of money calculations refer to? A) The future worth of money. B) The value of money in the future. C) The total monetary assets of a company. D) The value of money in the present. Show Answer Correct Answer: D) The value of money in the present. 3. ..... is the present value of an asset less all claims against it. A) Property. B) Asset. C) Capital. D) Equity. Show Answer Correct Answer: D) Equity. 4. The amount of money left after all deductions have been taken from the gross pay earned in a pay period is called? A) Gross pay. B) Pay period. C) Overtime pay. D) Net pay. Show Answer Correct Answer: D) Net pay. 5. Which of the following is not a source of external financing for a public limited company? A) Share capital. B) Retained profit. C) Overdraft. D) Debentures. Show Answer Correct Answer: B) Retained profit. 6. While designing capital structure a finance manager should choose a pattern of capital which- A) Minimizes cost of capital. B) Maximizes the owners return. C) Maximizes cost of capital and minimizes owners return. D) Both (a) and (b). Show Answer Correct Answer: D) Both (a) and (b). 7. Also known as errors and omissions (E&O) insurance. It protects you against negligence claims arising from harm that results from mistakes or failure to perform A) Property insurance. B) Workers' compensation insurance. C) Professional liability insurance. D) None of above. Show Answer Correct Answer: C) Professional liability insurance. 8. The sources of finance from which the quantum of required funds can be raised is/are: A) Share capital. B) Trade credit. C) Debt capital. D) All of these. Show Answer Correct Answer: D) All of these. 9. The management of money and financial decisions for a person or family including budgeting, investments, retirement planning and investments is ..... A) Personal Finance. B) Investment. C) Economics. D) Savings. Show Answer Correct Answer: A) Personal Finance. 10. It also deals with financial decisions such as when to introduce a new product, when to invest in new assets, when to replace existing assets, when to borrow from banks, when to issue stocks or bonds, when to extend credit to a customer, and how much cash to maintain. A) FINANCIAL MANAGEMENT. B) FINANCIAL STATEMENT. Show Answer Correct Answer: A) FINANCIAL MANAGEMENT. 11. Using the NPV approach, an investment is lucrative when the: A) Aggregate free cash flows to all capital providers discounted by the cost of equity is higher than total invested capital. B) Aggregate free cash flows to equity capital providers discounted by the weighted average cost of capital is higher than total invested capital. C) Aggregate free cash flows to equity capital providers discounted by the cost of equity is higher than total invested capital. D) Aggregate free cash flows to equity capital providers discounted by the cost of equity is higher than invested equity capital. Show Answer Correct Answer: D) Aggregate free cash flows to equity capital providers discounted by the cost of equity is higher than invested equity capital. 12. The IRR is the discount rate that produces a zero NPV or the specific discount rate at which the present value of the cost equals ..... A) The investment. B) The future value of the present cash outflows. C) The present value of the cash outflow. D) The present value of the future benefits or cash inflows. Show Answer Correct Answer: D) The present value of the future benefits or cash inflows. 13. Deals with Opportunity Cost A) Money Has Time Value. B) Market Prices Reflect Information. C) Risk Return Trade Off. D) Cash Flows Are Source of Values. Show Answer Correct Answer: A) Money Has Time Value. 14. One way to prepare and file your federal income tax return is online. Filing your taxes online is called ..... A) Government file. B) E-File. C) Manual file. D) None of above. Show Answer Correct Answer: B) E-File. 15. It means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. A) Financial Statement. B) Financial Institutions. C) Financial Markets. D) Financial Management. Show Answer Correct Answer: D) Financial Management. 16. What is the term for the cost of capital in financial management that is the required rate of return demanded by an investor for investing in a project? A) Discount rate. B) Market rate. C) Interest rate. D) Inflation rate. Show Answer Correct Answer: A) Discount rate. 17. It is kind of demand deposits which is generally kept by the people for the sake of safety A) Savings bank a/c. B) Current a/c deposit. C) Fixed deposits. D) Recurring deposit a/c. Show Answer Correct Answer: A) Savings bank a/c. 18. The financial manager is accountable for A) Arrangements of financial resources. B) Effective management of the fund. C) Proper utilization of fund. D) Earnings capital asset of the company. Show Answer Correct Answer: A) Arrangements of financial resources. 19. An underwriter facilitates the issuance of securities. The company sells itsstocks or bonds to the investment bank, which then sells these samesecurities to savers. A) Direct transfer. B) Transfer through Investment Banks. C) Transfer Through a Financial Intermediary. D) None of above. Show Answer Correct Answer: B) Transfer through Investment Banks. 20. The following are the responsibilities of a President EXCEPT ONE: A) Overseeing the operations of a company. B) Performing all areas of management:planning, organizing, staffing, directing, and controlling. C) Approving company's strategies, goals, and budgets. D) Ensuring that the company's strategies are implemented as planned. Show Answer Correct Answer: C) Approving company's strategies, goals, and budgets. 21. The capital market is primarily associated with the issuance and trading of short-term debt instruments. A) FALSE . B) TRUE. Show Answer Correct Answer: A) FALSE . 22. All of the following operate as financial intermediaries EXCEPT A) The U. S. Treasury. B) Mutual funds. C) Commercial banks. D) Insurance companies. Show Answer Correct Answer: A) The U. S. Treasury. 23. The portion of a corporation's profits that is not distributed to stockholders is called? A) Venture capital. B) Private placement. C) Retained earning. D) Preferred stock. Show Answer Correct Answer: C) Retained earning. 24. In calculating COGS for manufacturing companies, these are: A) EBIT-Interest expenses. B) Sales-expenses. C) Saldo awal persediaan barang jadi + harga pokok barang yang diproduksi-saldo akhir. D) Beginning inventory balance + cost of goods purchased-ending inventory. Show Answer Correct Answer: C) Saldo awal persediaan barang jadi + harga pokok barang yang diproduksi-saldo akhir. 25. Which of the following is not an inflow? A) Passive Income. B) Savings. C) Earned Income. D) Portfolio Income. Show Answer Correct Answer: B) Savings. 26. ..... affects bond prices A) Real estate prices. B) Time to maturity. C) Expiration date. D) Tax deductions. E) Loan rates. Show Answer Correct Answer: B) Time to maturity. 27. If you take out a loan from a bank, you will be charged ..... A) For principal but not interest. B) For interest but not principal. C) For both principal and interest. D) For interest only. Show Answer Correct Answer: C) For both principal and interest. 28. How is financial viability of an organization typically assessed? A) Customer feedback. B) Market Share. C) Financial Statements. D) Employee satisfaction. Show Answer Correct Answer: C) Financial Statements. 29. Debts to be paid more than one year from now are claims against the firm's assets:in other words, they are long-term liabilities. These claims are from ..... who have provided capital to the firm but whose entire repayment is not due during the coming year or operating cycle. A) Banks and bondholders. B) Banks and stockholders. C) Stockholders and bondholders. D) All long-term lenders. Show Answer Correct Answer: A) Banks and bondholders. 30. Deals with stocks, bonds, notes, and mortgages and derivative securities A) Capital markets. B) Money market. C) Financial Asset Markets. D) Physical asset markets. Show Answer Correct Answer: C) Financial Asset Markets. ← 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