This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 61 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 61 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When the value of the firm is derived by capitalizing the earnings by its cost of capital the formula for the value of the firms is ..... A) Debt+ Equity+ Retained Earnings. B) Debt+ Equity. C) WACC/Earnings. D) Earnings/WACC. Show Answer Correct Answer: D) Earnings/WACC. 2. Which form verifies the eligibility of an individual for employment. A) W-2. B) I-9. C) 401(k) 401(k). D) W-4. Show Answer Correct Answer: B) I-9. 3. Under conventional method ..... enters into a calculation of working capital?. A) Current assets. B) Current liabilities. C) Cash. D) Inventories. Show Answer Correct Answer: C) Cash. 4. What is done in the financial planning stage? A) Determine investment goals. B) Identify ways to achieve financial goals, both long and short term. C) Seek as much income as possible. D) Keep expenses to a minimum. Show Answer Correct Answer: B) Identify ways to achieve financial goals, both long and short term. 5. Businesses can practice social responsibility by donating money, products or services to social causes and nonprofits. A) ENVIRONMENTAL EFFORTS. B) PHILANTHROPY. Show Answer Correct Answer: B) PHILANTHROPY. 6. Occur when a form acquires former suppliers for customers A) Vertical merger. B) Market extension merger. C) Horizontal merger. D) Product extension merger. Show Answer Correct Answer: A) Vertical merger. 7. A system by which goods and services are produced and distributed A) Credit. B) Economy. C) Consumer. D) Loan. Show Answer Correct Answer: B) Economy. 8. Which of the following statements is/are correct?(1) Monetary policy seeks to influence aggregate demand by increasing or decreasing the money raised through taxation(2) When governments adopt a floating exchange rate system, the exchange rate is an equilibrium between demand and supply in the foreign exchange market(3) Fiscal policy seeks to influence the economy and economic growth by increasing or decreasing interest rates A) 2 only. B) 1 and 2 only. C) 1 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: A) 2 only. 9. Which answer below is an example of earned income? A) Interest earned on a savings account. B) Money earned from working at the mall. C) Money received from Social Security. D) None of above. Show Answer Correct Answer: B) Money earned from working at the mall. 10. Financial risk is analysed with the help of A) Operating leverage. B) Financial leverage. C) Combined leverage. D) All of above. Show Answer Correct Answer: B) Financial leverage. 11. Which is the better buy? Shampoo A is $ 4.59 for 32 ozs. and shampoo B is $ 8.86 for 46 ozs.? A) Shampoo A. B) Shampoo B. C) Both are equally good. D) Neither A or B. Show Answer Correct Answer: A) Shampoo A. 12. Which technique of financial management enables to manage day to day activities? A) Working Capital Management. B) Capital Budgeting. C) Capital Structure. D) Ratio Analysis. Show Answer Correct Answer: A) Working Capital Management. 13. What percentage is evaluations/assesment? A) 0.3. B) 0.5. C) 0.25. D) 0.15. E) 0.8. Show Answer Correct Answer: C) 0.25. 14. A fixed asset should be financed through: A) A long-term liability. B) A short-term liability. C) A mix of long and short-term liabilities. D) Current liability. Show Answer Correct Answer: A) A long-term liability. 15. The income statement reports: A) A company's financial position at a specific point in time. B) A company's cash flows over a period of time. C) A company's revenues and expenses over a period of time. D) A company's assets, liabilities, and equity. Show Answer Correct Answer: C) A company's revenues and expenses over a period of time. 16. Debenture indicate the A) Long term borrowings of a company. B) Directors shares. C) Short term borrowings of the company. D) The investment of equity shareholders. Show Answer Correct Answer: A) Long term borrowings of a company. 17. Also known as liquid assests A) Investment. B) Savings. Show Answer Correct Answer: B) Savings. 18. Cash flow management: A) Ensures adequate liquidity to meet short-term obligations. B) Manages working capital. C) Invests surplus funds effectively. D) All of the above. Show Answer Correct Answer: A) Ensures adequate liquidity to meet short-term obligations. 19. How many TA's are there? A) 5. B) 6. C) 8. D) 7. E) 9. Show Answer Correct Answer: D) 7. 20. Where is the signature on a credit or debit card? A) No place for a signature on the card. B) Under the card number. C) Front of card. D) Back of card. Show Answer Correct Answer: D) Back of card. 21. For whom the analysis of financial statements is not significant? A) Investor. B) Government. C) Company's Employee. D) Ambassador of India. Show Answer Correct Answer: D) Ambassador of India. 22. ..... involves increasing the proportion of debt and preference shares in total capital. A) Financial Analysis. B) Financing decision. C) Capital Budgeting. D) Trading on equity. Show Answer Correct Answer: D) Trading on equity. 23. Shadowline Co has a money cost of capital of 10%. If inflation is 4%, what is Shadowline Co's real cost of capital? (to one decimal place)? A) 5.7%. B) 5.8%. C) 5.9%. D) 5.5%. Show Answer Correct Answer: B) 5.8%. 24. Where a function reaches a highest point A) Maximum cost. B) Minimum. C) Maximum. D) Maximum value. Show Answer Correct Answer: D) Maximum value. 25. What is the EAR if the APR is 10.52% and compounding is daily? A) Slightly above 10.09%. B) Slightly below 11.09%. C) Slightly above 11.09%. D) Over 11.25%. Show Answer Correct Answer: C) Slightly above 11.09%. 26. Financial systems and policies must be consistent but that does not mean they cannot be adjusted if there are changes in an organization. This is one of the principles of financial management, namely: A) Transparency. B) Consistency. C) Accounting standards. D) Accountability. Show Answer Correct Answer: B) Consistency. 27. Which formula is used to measure the degree of operating leverage A) EBIT/CONTRIBUTION. B) Contribution/EBIT. C) EBT/EBIT. D) EBIT/EBT. Show Answer Correct Answer: B) Contribution/EBIT. 28. To prepare a budget, a business must be able to identify and predict the amount of each source of income and each type of expense. A) False. B) True. Show Answer Correct Answer: B) True. 29. The process in which a company buys securities in one market and sells securities in another market at the same time is called A) Homemade leverage. B) Arbitrage. C) Corporate debt raising process. D) None of the above. Show Answer Correct Answer: B) Arbitrage. 30. These are cash flows that have occurred in the past and cannot be recovered regardless of the investment decision, so they cannot affect our decision, is the meaning of ..... A) Variable Cost. B) Sunk Cost. C) Flotation Cost. D) Fixed Cost. Show Answer Correct Answer: B) Sunk Cost. ← 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