This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 56 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 56 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is an active income? A) House rental. B) Commission. C) Interest. D) Dividend. Show Answer Correct Answer: B) Commission. 2. What is factoring? A) Production Plan. B) New Financial Service. C) Cost of Sales. D) All of the above. Show Answer Correct Answer: B) New Financial Service. 3. Which of the following constitutes owner's fund? A) Retained earnings. B) Debentures. C) Bank loan. D) None of above. Show Answer Correct Answer: A) Retained earnings. 4. What are the common parts of a credit application? A) Name, date, reason for the loan, what school you go to. B) Reason for loan, School attended(ing), where you live, documentation, current debts, credit references, your grandparents names, bank references, signature/date. C) The names of your siblings, how much money you make, your favorite hobbies, your favorite music, references. D) Reason for the loan, your grades during high school, employment history. E) Reason for loan, personal identification info, employment info, mortgage/rental info, documentation, current debts, credit references, collateral, bank references, signature/date. Show Answer Correct Answer: E) Reason for loan, personal identification info, employment info, mortgage/rental info, documentation, current debts, credit references, collateral, bank references, signature/date. 5. Compounding technique is used to: A) Find out the future value of money. B) Find out both present and future value of money. C) Find out the present value of money. D) None of the above. Show Answer Correct Answer: A) Find out the future value of money. 6. 'A fast-moving market and the right price' is the financial principle of 'capital market efficiency'. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 7. They are the monetary relations that arise between the economic actors in the formation, distribution and use of money funds; In this post we explain the three main functions that finance has:distribute, control and accumulate. A) Efficiency. B) Production. C) Finance. D) Costs. Show Answer Correct Answer: C) Finance. 8. Below are the responsibilities of financial managers, except A) Controlling credit operations. B) Acquiring needed inventory. C) Making capital expenditures. D) Decide equity share percentage to founders and investors. E) Managing day-by-day needs of the business. Show Answer Correct Answer: D) Decide equity share percentage to founders and investors. 9. Which of the following would be considered a short-term goal for a 4th grader? A) Going to college on a football scholarship. B) Submitting the work on time for the 1st term. C) Having perfect attendance from 9-12th grades. D) Having a career in physical training after college. Show Answer Correct Answer: B) Submitting the work on time for the 1st term. 10. The original purchase price of an asset less its accumulated depreciation, is the meaning of ..... A) Book Value. B) Equity Value. C) Intrinsic Value. D) Market Value. Show Answer Correct Answer: A) Book Value. 11. On the asset side, we have ..... as our current asset and ..... as the long-term asset. A) Equipment, inventory. B) Inventory, investments. C) Inventory, equipment. D) Equipment, investments. Show Answer Correct Answer: C) Inventory, equipment. 12. What is a purpose of financial analysis? A) Developing long-term growth strategies. B) Determining the value of a business. C) Identifying areas of cost reduction. D) Calculating the return on investment. Show Answer Correct Answer: D) Calculating the return on investment. 13. Makayla bought a new outfit for $ 80.00. If sales tax was 6.75% what was the total price of the outfit? A) $ 87.50. B) $ 85.40. C) $ 86.40. D) $ 85.04. Show Answer Correct Answer: B) $ 85.40. 14. ..... can help to deal with agency problem. A) Corporate policies. B) Corporate responsibility. C) Corporate governance. D) Corporate ethics. Show Answer Correct Answer: C) Corporate governance. 15. An organization that underwrites anddistributes new investment securities and helps businesses obtainfinancing. A) Investment banks. B) Commercial banks. C) Financial services corporations. D) None of above. Show Answer Correct Answer: A) Investment banks. 16. As the economy booms and approaches the limits of productivity at a point in time, a manufacturing business would typically feel which one of the following effects? A) Increased inflation (higher sales prices and higher costs), difficulty in finding suitable candidates to fill roles and higher interest rates. B) High export demand, increasing growth rates, high inflation and high interest rates. C) Reducing inflation, falling demand, reducing investment, increasing unemployment. D) Higher government spending, lower tax rates, high inflation and low unemployment. Show Answer Correct Answer: A) Increased inflation (higher sales prices and higher costs), difficulty in finding suitable candidates to fill roles and higher interest rates. 17. Income from investment A) Risk. B) Investment. C) Property. D) Return. Show Answer Correct Answer: D) Return. 18. Granting a loan and the creation of debt; any form of deferred payment A) Debt. B) Debit. C) Credit card. D) Credit. Show Answer Correct Answer: D) Credit. 19. Money that you make is called ..... A) Propery taxes. B) Income. C) Fixed expense. D) Variable expense. Show Answer Correct Answer: B) Income. 20. Are the following statements true or false? True False 1. Cash flow forecasting is primarily the responsibility of financial reporting. 2. Whether to undertake a particular new project is a financial management decision. A) True & False. B) True & True. C) False and False. D) False & True. Show Answer Correct Answer: A) True & False. 21. Mr. Singh's company uses labour intensive technique, he requires ..... fixed capital A) More. B) Less. C) No. D) None of above. Show Answer Correct Answer: B) Less. 22. Chris gets a monthly statement each month to pay his ..... A) Barber. B) Saving account. C) Debit card. D) Credit Card. Show Answer Correct Answer: D) Credit Card. 23. Firms having longer processing cycle require A) More fixed capital. B) More working capital. C) Less working capital. D) No fixed capital. Show Answer Correct Answer: B) More working capital. 24. Average cost of capital in case of optimum capital structure is- A) Highest. B) Lowest. C) Zero. D) None of these. Show Answer Correct Answer: B) Lowest. 25. A cash budget is a plan for the amount expected to be spent and earned over a given period of time. A) False. B) True. Show Answer Correct Answer: A) False. 26. In designing a Management Control System, we must be sensitive to changes in the characteristics of our business environment, which are triggered by drivers of change. Therefore, the mindset of managers must change to view business now. There are several mindsets that managers must have, including, EXCEPT: A) Continuous Improvement Mindset. B) Customer Value Mindset. C) Boss Mindset. D) Opportunity Mindset. Show Answer Correct Answer: C) Boss Mindset. 27. The most popular alternative to NPV for capital budgeting decisions is the ..... method. A) Discounted payback period. B) Payback period. C) Internal rate of return (IRR). D) Profitability index. Show Answer Correct Answer: C) Internal rate of return (IRR). 28. All of the following are important aspects of effect investment except A) Timing of the cash flow stream. B) Amount of expected cash flows. C) Risk of the cash flows. D) None of the above. Show Answer Correct Answer: D) None of the above. 29. Increase in current assets or decrease in current liabilities increases the current ratio A) False. B) True. Show Answer Correct Answer: B) True. 30. The bank grants overdraft facility to its reliable and respectable depositors. A) Overdraft. B) Cash credit. C) Bills of exchange. D) None of above. Show Answer Correct Answer: A) Overdraft. ← 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