This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 53 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 53 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All of the following are skills that managers acquire through corporate finance except A) Raise money to fund the firm's operations. B) Select corporate strategies that add value to the firm. C) Evaluate potential projects. D) Reduce operating costs. Show Answer Correct Answer: D) Reduce operating costs. 2. Which among the statement is not true for a debenture A) Long term loan finance. B) Interest on debenture is a tax deductible expense for the company. C) Fixed and regular source of income to the investor. D) None of these. Show Answer Correct Answer: D) None of these. 3. Long term investment decisions are also called A) Capital decision borrowing. B) Capital budgeting decision. C) Capital investment decision. D) Capital management decision. Show Answer Correct Answer: B) Capital budgeting decision. 4. The process of budgeting, saving, investing, spending or otherwise supervising the use of money by an individual or group is ..... A) Money Management. B) Savings Account. C) Investment. D) Checking Account. Show Answer Correct Answer: A) Money Management. 5. A company with high growth plans must A) Distribute liberal dividend. B) Distribute less dividend. C) Distribute no dividend. D) None of above. Show Answer Correct Answer: B) Distribute less dividend. 6. Credit used to buy a house or car is known as A) Bad credit. B) Open credit. C) Closed credit. D) Quick credit. Show Answer Correct Answer: C) Closed credit. 7. The job of a finance manager is confined to A) Raising of funds. B) Management of Cash. C) Raising of Funds and their effective utilization. D) None of above. Show Answer Correct Answer: C) Raising of Funds and their effective utilization. 8. Financial management came into existence as a separate field of study from ..... ? A) 19th century. B) 21st century. C) 20th century. D) None of these. Show Answer Correct Answer: C) 20th century. 9. A ..... net working capital will arise when current assets exceed current liabilities. A) Negative. B) Positive. C) Summative. D) Excessive. Show Answer Correct Answer: B) Positive. 10. What is not the main reason that companies go "global" ? A) To seek raw materials. B) To avoid political hurdles . C) To diversify. D) To narrowed their markets. Show Answer Correct Answer: D) To narrowed their markets. 11. Which type of bank is FOR PROFIT and run by its shareholders? A) Commercial Banks. B) Credit unions. Show Answer Correct Answer: A) Commercial Banks. 12. The liabilities included in the balance sheet elements are: A) Interest Charge. B) Income received in advance. C) Prepaid expenses. D) All the answers above are incorrect. Show Answer Correct Answer: C) Prepaid expenses. 13. Executive finance functions are handled by the persons with the basic knowledge of accounting. A) FALSE . B) TRUE. Show Answer Correct Answer: A) FALSE . 14. If the discounting factor of year 3 is $ 0.8, it means that: A) $ 1 is the present value of $ 0.8 in 3 years. B) $ 0.8 is the future value of $ 1 now. C) $ 0.8 is the present value of $ 1 in 3 years. D) $ 0.8 is the present value of $ 1 in 5 years. Show Answer Correct Answer: C) $ 0.8 is the present value of $ 1 in 3 years. 15. CAPITAL STRUCTURE DENOTES THE COMPOSITION OF A) SHARE CAPITAL. B) LONG TERM AND SHORT TERM DEBTS. C) DEBT AND EQUITY. D) RESERVES AND SURPLUS. Show Answer Correct Answer: B) LONG TERM AND SHORT TERM DEBTS. 16. What steps are not included in financial management according to the material? A) Identifying income and outcomes. B) Make a budget. C) Monitor production. D) Set medium-term goals. Show Answer Correct Answer: D) Set medium-term goals. 17. Business finance deals with which of the following? A) Utilize funds efficiently. B) Procuring funds from different sources on fair terms. C) Both of these. D) None of these. Show Answer Correct Answer: C) Both of these. 18. The primary goal of corporate management is profit maximization. A) False. B) True. Show Answer Correct Answer: A) False. 19. Which of the following is not a short-term financial goal? A) Go for vacation. B) Buy a PS5. C) Buy a nintendo switch. D) Buy a house. Show Answer Correct Answer: D) Buy a house. 20. I am walking 3 hours today to raise money for Juvenile Diabetes. How much can you pledge? A) Saving. B) Investing. C) Donating. D) Spending. Show Answer Correct Answer: C) Donating. 21. Receivables management involves a ..... between costs and benefits of receivable A) Discount. B) Trade-off. C) Recommendation. D) None. Show Answer Correct Answer: B) Trade-off. 22. Long term financial plan usually exceed A) 5 years. B) 20 years. C) 10 years. D) 15 years. Show Answer Correct Answer: A) 5 years. 23. A local business has made a Gross Profit of $ 150, 000 in 2019. They had $ 50 000 in wages to pay, and $ 40 000 in Rent and $ 5000 in electricity. The net profit was therefore: A) $ 245 000. B) $ 55 000. C) $ 145 000. D) $ 25 000. Show Answer Correct Answer: B) $ 55 000. 24. A capital budget is ..... A) A plan for company expenditure for the purchase of large assets such as property or manufacturing equipment. B) An estimate of cash inflows and outflows over a certain period. C) The total of the company budget that summarizes the proposed financial activities. D) None of above. Show Answer Correct Answer: A) A plan for company expenditure for the purchase of large assets such as property or manufacturing equipment. 25. When a company uses debt fund in its financial structure, it will lead to a change in A) Operating leverage. B) Stock market leverage. C) Money market leverage. D) Financial leverage. Show Answer Correct Answer: D) Financial leverage. 26. Bad debts refers to default cost. A) True. B) False. C) May be. D) None. Show Answer Correct Answer: A) True. 27. All of the decisions and activities of an individual or a family regarding their money, including spending, saving, saving, and budgeting. A) Personal finance. B) Financial management. C) Cash flow analysis. D) None of above. Show Answer Correct Answer: A) Personal finance. 28. What is a credit score? A) A small plastic card that lets you make a purchase without cash. B) How much money you make compared to how much money you owe?. C) A number that helps a lender predict how likely an individual is to repay a loan. D) None of above. Show Answer Correct Answer: C) A number that helps a lender predict how likely an individual is to repay a loan. 29. The feasibility of an investment project can be assessed using A) Time Value of Money Approach. B) Capital Budgeting Approach. C) Amount of Depreciation. D) Answers a and b are correct. Show Answer Correct Answer: D) Answers a and b are correct. 30. Holly Corporations' net income was P400, 000 in 2015 and P1, 600, 000 in 20216. What percentage increase in net income must Holly achieve in 2017 to offset the decline in profits in 2016? A) 600%. B) 67%. C) 60%. D) 150%. Show Answer Correct Answer: D) 150%. ← 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