This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The company will have cash when..... A) Account Receivable meningkat. B) Customers pay faster. C) Inventory menurun. D) Profits increase. Show Answer Correct Answer: B) Customers pay faster. 2. Ideal cash will not generate profit but cause loss of ..... ? A) Value of firm. B) Interest. C) None of these. D) None of above. Show Answer Correct Answer: B) Interest. 3. Which of the following is studied with the help of operating leverage A) Analysis of business risk. B) Analysis of credit risk. C) Analysis of production isk. D) Analysis of financial risk. Show Answer Correct Answer: A) Analysis of business risk. 4. In hospitality organizations, the pricing of services offered should be precise in order to maximize profits-this is related to the concept of ..... A) Profit maximization. B) Funding operational expenses. C) Tax considerations. D) Wealth maximization. Show Answer Correct Answer: A) Profit maximization. 5. All of the following are classified as non-bank financial intermediaries except A) Stock brokerages. B) Investment banks. C) Insurance companies. D) Insurance companies. Show Answer Correct Answer: A) Stock brokerages. 6. How do you calculate your net worth? A) Liabilities-Assets. B) Cash-Liabilities. C) Assets AND Liabilities. D) Assets-Liabilities. E) Cash X Assets. Show Answer Correct Answer: D) Assets-Liabilities. 7. Greater exposure bigger the A) Spot rate. B) Forward rate. C) Risk. D) Investment. Show Answer Correct Answer: C) Risk. 8. The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 9. For employer's the most important aspect they look at when hiring is A) Ethnicity. B) Financial status. C) Physical strength. D) Intelligence. E) Attitude. Show Answer Correct Answer: E) Attitude. 10. If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be: A) 10.38% per year. B) 10.10 per year. C) 10.25% per annum. D) 10% per year. Show Answer Correct Answer: A) 10.38% per year. 11. Quick Assets do not include ..... A) Cash. B) Inventory. C) Bills Receivable. D) Debtors. Show Answer Correct Answer: B) Inventory. 12. What type of budget describes the financial plan for ongoing functions of the business for a specific period? A) Balance. B) Direct. C) Operating. D) Start-up. Show Answer Correct Answer: C) Operating. 13. Late installment payment will lead to additional interest charges and late payment penalty. A) False. B) True. Show Answer Correct Answer: B) True. 14. What is foreclosure? A) When an organization is unable to honor its financial obligations or make payment to its creditors. B) When a portion of the borrower's paycheck goes to paying off the loan. C) When the creditor would repossess the collateral and sell it. D) When collectors can sue the borrower for a debt of any amount if they refuse to pay. E) When the borrower's home is taken by the lender because they aren't making payments on the mortgage loan. Show Answer Correct Answer: E) When the borrower's home is taken by the lender because they aren't making payments on the mortgage loan. 15. AA Enterprise borrow long term by selling bonds RM80, 000. This statement shows that AA Enterprise utilizes A) Uses of fund. B) Sources of fund. Show Answer Correct Answer: B) Sources of fund. 16. What does an increase in the current ratio indicate about a company's short-term financial position? A) Higher profitability. B) Declining solvency. C) Increased leverage. D) Improved liquidity. Show Answer Correct Answer: D) Improved liquidity. 17. Which one is not the four factors influencing capital structure decisions? A) Business risk. B) The firm's tax position. C) Financial flexibility. D) Government policies. Show Answer Correct Answer: D) Government policies. 18. Tax is a liability. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 19. What would happen if your expenses are greater than your income? A) You could save more money. B) You could loan people money. C) You would be rich. D) You would be in debt. Show Answer Correct Answer: D) You would be in debt. 20. According to modern approach, finance function means ..... A) Procurement of Funds. B) Investment of Funds. C) Income Management. D) All of above. Show Answer Correct Answer: D) All of above. 21. The financial manager selects one or more sources of finance after proper taking into Consideration of: A) Cost of capital. B) Control. C) Risk. D) All of these. Show Answer Correct Answer: D) All of these. 22. The main objective of financial planning is to ensure A) Availability of raw material. B) Availability of fixed assets. C) Availability of the funds at the right time. D) Dividend is paid to share holders on the right time. Show Answer Correct Answer: C) Availability of the funds at the right time. 23. Suppose that over the life of the loan, the total interest expense for a monthly loan is $ 7, 000, while the total interest payment for an annual loan is $ 8, 000. Which of the below statements is FALSE? A) The difference reflects the reduction of the principal each month versus the annual reduction of the principal. B) The more frequent the payment, the lower the total interest expense over the life of the loan, even though the effective rate of the loan is lower. C) Reducing principal at a faster pace reduces the overall interest paid on a loan. D) The more frequent the payment, the lower the total interest expense over the life of the loan, even though the effective rate of the loan is higher. Show Answer Correct Answer: B) The more frequent the payment, the lower the total interest expense over the life of the loan, even though the effective rate of the loan is lower. 24. The controller's responsibilities are primarily in nature, while the treasurer's responsibilities are primarily related to. A) Financial management; accounting. B) Accounting; financial management. C) Operational; financial management. D) Financial management; operations. Show Answer Correct Answer: B) Accounting; financial management. 25. The amount an employee contributes each pay period to a retirement plan. A) Net pay. B) Retirement Plan. C) Gross pay. D) FICA. Show Answer Correct Answer: B) Retirement Plan. 26. Manifestation of Focus values A) Agile and proactive to provide the best. B) Understand goals, set priorities and look for new ways creatively and innovatively. C) Putting first things first, establishing quick wins and optimizing resources. D) Long-term/visionary oriented, has challenging targets and anticipates risks. Show Answer Correct Answer: C) Putting first things first, establishing quick wins and optimizing resources. 27. Financial structure refers to ..... A) Short-term resources. B) All the financial resources. C) Long-term resources. D) All of these. Show Answer Correct Answer: B) All the financial resources. 28. What is the main purpose of corporate governance? A T B C D t A) To separate ownership and management control of organisations. B) To maximise shareholder value. C) To facilitate effective management of organisations and to make organisations more visibly accountable to a wider range of stakeholders. D) To ensure that regulatory frameworks are adhered to. Show Answer Correct Answer: C) To facilitate effective management of organisations and to make organisations more visibly accountable to a wider range of stakeholders. 29. Financial services are the processes by which consumers and businesses acquire financial ..... A) Advice. B) Support. C) Goods. D) Instruments. Show Answer Correct Answer: C) Goods. 30. Which agency regulate the money supply in india A) A. The government of india. B) B. Commercial bank. C) C. Reserve bank of india. D) D none of the above. Show Answer Correct Answer: C) C. Reserve bank of india. ← PreviousNext →Related QuizzesManagement QuizzesFinance QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 7Financial Management Quiz 8Financial Management Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books