This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 54 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 54 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the primary goal of financial strategy formulation? A) Minimizing expenses. B) Achieving operational efficiency. C) Maximizing shareholder wealth. D) Maximizing revenue. Show Answer Correct Answer: C) Maximizing shareholder wealth. 2. What is a depreciation? A) A cash outflow. B) An income-decreasing expense that does not affect cash-flows. C) A side calculation done by auditors. D) Accounting expression for the act of selling an asset. Show Answer Correct Answer: B) An income-decreasing expense that does not affect cash-flows. 3. Cannot be controlled and that must be paid to operate a business. They include depreciation on buildings and equipment and salaries paid to managers A) COMMITTED. B) DISCRETIONARY. C) Controllable. D) None of above. Show Answer Correct Answer: A) COMMITTED. 4. Which of the following would NOT improve the current ratio? A) Sell fixed assets to reduce accounts payable. B) Borrow short term to finance additional fixed assets. C) Issue long-term debt to buy inventory. D) Sell common stock to reduce current liabilities. Show Answer Correct Answer: B) Borrow short term to finance additional fixed assets. 5. Average U.S. wages in 1990 were $ 28, 960, far larger than the average wage in 1930 of $ 1, 970. What was the average annual increase in wages over this 60-year period? A) 24.50%. B) 2.45%. C) 3.31%. D) 4.58%. Show Answer Correct Answer: D) 4.58%. 6. Which of the following is NOT an example of an business expense A) Electricity Bill. B) Staff Wages. C) Car loan. D) Rent paid. Show Answer Correct Answer: C) Car loan. 7. Pedro is saving for a car and needs $ 8, 000, he will save for 3 years. How much does he need to save each month to make his goal? A) $ 222.22. B) $ 225.00. C) $ 230.00. D) $ 250.00. Show Answer Correct Answer: A) $ 222.22. 8. The following accounts are part of the Balance Sheet, EXCEPT: A) Account Receivable. B) Inventories. C) Depreciation and Amortization expenses. D) Patent & Goodwill. Show Answer Correct Answer: C) Depreciation and Amortization expenses. 9. What is the first financial model? A) Profits. B) Savings. C) Financial freedom. D) Investment. Show Answer Correct Answer: B) Savings. 10. A merger in which an entirely new form is created and both the acquired or acquiring form cease to exist is called a a A) Divestiture. B) Consolidation. C) Tendor offer. D) None of the above. Show Answer Correct Answer: B) Consolidation. 11. Is an ongoing process that will reduce your stress about money, support your current needs and help you build a nest egg for your long-term goals, like retirement. Financial planning is important because it allows you to make the most of your assets, and helps ensure you meet your future goals. A) Financing. B) Financial Planning. C) Financial management. D) Budgeting. Show Answer Correct Answer: B) Financial Planning. 12. What percentage of Vinamilk's revenue in 2021 came from domestic sales? A) The information is not provided. B) 84.05%. C) 0.7%. D) 10.5%. Show Answer Correct Answer: B) 84.05%. 13. In case of net income approach the cost of equity is A) Increasing. B) Constant. C) Fixed. D) Decreasing. Show Answer Correct Answer: B) Constant. 14. Financial intermediaries, such as banks and mutual funds, play a role in facilitating the exchange of financial assets in financial markets. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 15. Indicate, by clicking in the relevant boxes, whether the following statements are true or false. 1. Financial management is concerned with the long-term raising of finance and the allocation and control of resources 2. Management accounting is concerned with providing information for the more day-to-day functions of control and decision-making 3. Financial accounting is concerned with providing information about the historical results of past plans and decisions A) True, False, False. B) True, False, True. C) True, True, True. D) False, True, True. Show Answer Correct Answer: C) True, True, True. 16. Which of the following is an example of personal finance? A) A company issuing common stocks. B) A financial institution giving loans to businesses. C) An individual managing their own savings. D) A government obtaining funds through bonds. Show Answer Correct Answer: B) A financial institution giving loans to businesses. 17. A tool that helps managersto determine thebest way of structuringoperating costs(fixed versus variable). A) Break Even Point. B) Breakeven wedge. C) Cash break even. D) None of above. Show Answer Correct Answer: B) Breakeven wedge. 18. A, a finance manager of a company thinks its better to declare smaller dividend in spite the company earned high profits as he was not sure about the earning potential of a company in coming years. A is considering which factor A) Stability of earning. B) Stock marker reaction. C) Growth opportunities. D) Stability of dividend. Show Answer Correct Answer: D) Stability of dividend. 19. Choose whether the following statement is true/false.Levies are actions that make the IRS is empowered to use in taking your stuff when you owe them unpaid taxes. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 20. What does the "T" mean in SMART goals? A) Time. B) Task. C) Teammates. D) Time-Bound. E) Team. Show Answer Correct Answer: D) Time-Bound. 21. It refers to the net inflows and outflows of money that a company or project has in a given period. A) Cash flow. B) Utility. C) Bills. D) Costs. Show Answer Correct Answer: A) Cash flow. 22. Among the follpowing individuals, who sets the SMART goals A) Mrs. Lee intends to buy a laptop which cost RM 3500 as a birthday gift for her son. Therefore, she plans to RM 350 a month for 10 months. B) Mr. Anson is a civil engineer with an income RM 3000 and plans to get married in two years' time. The wedding expenses are estimated to be 30 000. He plans to get a loan for the wedding expenses. C) Mr. Hazeeq wants to buy a bouse worth RM 500 000 if he has sufficient amount of money. D) None of above. Show Answer Correct Answer: A) Mrs. Lee intends to buy a laptop which cost RM 3500 as a birthday gift for her son. Therefore, she plans to RM 350 a month for 10 months. 23. During the summer, I work at the pool. A) Investing. B) Donating. C) Spending. D) Earning. Show Answer Correct Answer: D) Earning. 24. A high operating leverage indicates- A) Highly favourable situation as it consists of low fixed costs. B) Highly favourable situation as it consists of higher EPS. C) Highly risky situation as it consists of large fixed costs. D) Highly risky situation as it consists of large interest costs. Show Answer Correct Answer: C) Highly risky situation as it consists of large fixed costs. 25. Totals all of the deductions that have been withheld from an individual's paycheck from January 1 to the last day of the pay period indicated on the paycheck stub. A) Year-To-Date. B) Paycheck-To-Paycheck. C) Month-To-Date. D) Retirement Plan. Show Answer Correct Answer: A) Year-To-Date. 26. Which one of the following gives a brand new form by merging existing entities A) Shared Assignment. B) Merger. C) Acquisition of stock. D) Consolidation. Show Answer Correct Answer: D) Consolidation. 27. The Real Cashflows must be discounted to get the present value at a rate equal to: A) Risk free rate of interest. B) Inflation Rate. C) Money Discount Rate. D) Real Discount Rate. Show Answer Correct Answer: D) Real Discount Rate. 28. How old can you be to open a savings or checking account? A) 13 with a guardian. B) 5 with a guardian. C) 18 with a guardian. D) 20. Show Answer Correct Answer: A) 13 with a guardian. 29. A financial statement that shows the "Gross Profit, Operating Expenses, and Net Income over a year's time is a: A) Balance Sheet. B) Income Statement. C) Payroll Sheet. D) None of the above. Show Answer Correct Answer: B) Income Statement. 30. What is the primary concern of the investment function in financial management? A) Distributing profits to shareholders. B) Managing short-term liquidity. C) Determining which investments to make. D) Raising capital. Show Answer Correct Answer: C) Determining which investments to make. ← 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