This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 60 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 60 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. For knowing the Present Value of a perpetuity, we use A) PVF. B) PVAF. C) Annuity$\div$. D) None of the above. Show Answer Correct Answer: C) Annuity$\div$. 2. Business Activities will produce a Profit/Loss Report. To run a business you need assets. And to obtain assets, a source of funds is needed. The following are sources of funds, EXCEPT: A) Capital (Shareholder Funds). B) 3rd party loan debt (ex. Bank, MTN, Bonds, etc.). C) Answers a and b are both correct. D) Customer Receivables. Show Answer Correct Answer: D) Customer Receivables. 3. Which of the following is NOT provided in a ticker? A) Ticker symbol. B) Volume of shares. C) Which stock to buy. D) Price change. E) Percentage change from previous session close. Show Answer Correct Answer: C) Which stock to buy. 4. Present value takes A) Compounding rate. B) Inflation rate. C) Deflation rate. D) Discounting rate. Show Answer Correct Answer: D) Discounting rate. 5. Which budget is designed to estimate a company's cash inflows and outflows? A) Master budget. B) Cash budget. C) Capital budget. D) Operational budget . Show Answer Correct Answer: B) Cash budget. 6. A stronger cash flow position prefers ..... A) Debt. B) Equity. C) Both debt and equity. D) None. Show Answer Correct Answer: A) Debt. 7. Which of the following argues that the value of levered firm is higher than that of the early word firm A) Net income approach. B) Net operating income approach. C) Mm model with taxes. D) Both a and C. Show Answer Correct Answer: D) Both a and C. 8. A high capital gearing ratio indicates that: A) A company has a low proportion of equity capital compared to debt capital. B) A company has a low proportion of debt capital compared to equity capital. C) A company has a high proportion of equity capital compared to debt capital. D) A company has a high proportion of debt capital compared to equity capital. Show Answer Correct Answer: D) A company has a high proportion of debt capital compared to equity capital. 9. ..... are the debts owed to others. A) Equity. B) Liabilities. C) Owner's equity. D) Assets. Show Answer Correct Answer: B) Liabilities. 10. In a financial market, the price to borrow money is called the? A) Interest Rate. B) Cost. C) Credit. D) Deposit. Show Answer Correct Answer: A) Interest Rate. 11. Purchase of land and building A) Investing Activities. B) Operating Activities. C) Financing Activities. D) None of above. Show Answer Correct Answer: A) Investing Activities. 12. What does affect the value of company? A) Capital cost. B) Market price of shares. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 13. Which of these are mutual funds? A) Money market funds. B) Bonds funds. C) Stock funds. D) Target date fund. E) All of the above. Show Answer Correct Answer: E) All of the above. 14. The true owners of the corporation are the A) Holders of debt issues of the firm. B) Board of directors of the firm. C) Preferred stockholders. D) Common stockholders. Show Answer Correct Answer: D) Common stockholders. 15. Necessary whether you rent or own the property. Property insurance typically covers equipment, signage, inventory and furniture in the event of storm, theft or fire. Mass destruction events, such as tornadoes, floods and earthquakes, are not usually covered under a general policy. You may need to get a separate policy if these are likely in your area. A) Property insurance. B) Workers' compensation insurance. C) Professional liability insurance. D) None of above. Show Answer Correct Answer: A) Property insurance. 16. It also acts as an intermediary that take funds from the people who save and lend it to people who have productive investment opportunities. A) Capital markets. B) Money markets. C) Financial institution. D) Finance markets. Show Answer Correct Answer: C) Financial institution. 17. Bond that can be converted to common share is? A) Debenture. B) Convertible. C) Mortgage. D) Registered. Show Answer Correct Answer: B) Convertible. 18. Correct cost of capital helps in the following decision making: A) Evaluation of Investment options. B) Financing Decision. C) Designing of optimum credit policy. D) All the three. Show Answer Correct Answer: D) All the three. 19. Also known as balance sheet, balance sheet or statement of equity, it is a financial statement that reflects at a given time the economic and financial information of a company, separated into three assets:assets, liabilities and net worth. A) Statement of income. B) Balance sheet. C) Cash flow. D) Cost effectiveness. Show Answer Correct Answer: B) Balance sheet. 20. Used to withdraw cash or make deposits. A) Credit Card. B) ATM. C) Debit Card. D) Deposit Slip. Show Answer Correct Answer: B) ATM. 21. A result in the reduction in value or loss of any of the organization's financial assets. A) Risk. B) Investment Proposal. C) Returns. D) None of above. Show Answer Correct Answer: A) Risk. 22. How the organizations find/obtain the funds needed for running the organizations' activities? A) Loans. B) Shares or bonds. C) Sales of products. D) All answers are correct. Show Answer Correct Answer: D) All answers are correct. 23. Which type of budget is an estimate of the actual money received and paid out for a specific period? A) Final budget. B) Cash budget. C) Balanced budget. D) Accounting budget. Show Answer Correct Answer: B) Cash budget. 24. The following reasons are good motives for merger except A) Contemporary resources. B) Diversification. C) Eliminating inefficiencies. D) Economics of scale. Show Answer Correct Answer: B) Diversification. 25. Financial Management is one Function of an Organisation. A) False. B) True. Show Answer Correct Answer: B) True. 26. ..... can also be created to turn a substantial lump sum into steady cash flow, such as for winners of large cash settlements from a lawsuit or from winning the lottery. A) Perpetuity. B) Capital Market. C) Annuity. D) Money Market. Show Answer Correct Answer: C) Annuity. 27. There are six technique in capital bugeting to measures profitability, which one is correct? A) CAPM, MIRR, PP, NPV, IRR, PI. B) PP, Disc PP, NPV, PI, MIRR, CAPM. C) PP, NPV, IRR, CAPM, PI, MIRR. D) Disc PP, PP, NPV, IRR, MIRR, PI. Show Answer Correct Answer: D) Disc PP, PP, NPV, IRR, MIRR, PI. 28. It is the increase in shareholders' equity in harmony with the objectives associated with clients, workers and other interest groups. A) Monetary Politics. B) Value added. C) Basic financial objective. D) Production. Show Answer Correct Answer: C) Basic financial objective. 29. Bank statements are compared to the check register when ..... this account. A) Depositing slip. B) Check registering. C) Checking. D) Reconciling. Show Answer Correct Answer: D) Reconciling. 30. There are three possible sources of weights for the WACC, except ..... A) Target capital structure weights. B) Market value weights. C) Intrinsic value weights. D) Book value weights. Show Answer Correct Answer: C) Intrinsic value weights. ← 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