This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 64 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 64 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following actions is LEAST likely to increase shareholder wealth? A) The annual report declares full compliance with the corporate governance code. B) The financial rewards of directors are linked to increasing earnings per share. C) The board of directors decides to invest in a project with a positive NPV. D) The weighted average cost of capital is decreased by a recent financing decision. Show Answer Correct Answer: B) The financial rewards of directors are linked to increasing earnings per share. 2. Refers to the traditional and narrow approach, which aims to maximize the profit of the concern. A) Wealth Minimization. B) Profit Minimization. C) Profit Maximization. D) Wealth Maximization. Show Answer Correct Answer: C) Profit Maximization. 3. Assume a profitable firm has neither issued nor repurchased any shares of its common stock, nor has it ever paid dividends. If the book value of the firm's stockholders' equity has increased, it follows that the: A) Firm's earnings per share has increased. B) Market value of the firm's buildings has increased. C) Market value of the firm's long-term debt has decreased. D) None of above. Show Answer Correct Answer: A) Firm's earnings per share has increased. 4. Financial management process deals with A) Investments. B) Financing decisions. C) Both a and b. D) None of the above. Show Answer Correct Answer: B) Financing decisions. 5. A "deduction" is A) Money taken out of a paycheck. B) Gross pay. C) Net pay. D) Money added. Show Answer Correct Answer: A) Money taken out of a paycheck. 6. What Is Finance? A) Finance can be defined as the science and art of managing money. B) Finance can be defined as the science and art of managing people. C) Finance can be defined as the science and art of managing customers. D) Finance can be defined as the science and art of managing firm. Show Answer Correct Answer: A) Finance can be defined as the science and art of managing money. 7. Which of the following is NOT a function of a financial manager? A) Financial report. B) Product development. C) Financial risk management. D) Cash flow management. Show Answer Correct Answer: B) Product development. 8. The abbreviation for WTP in the world of Financial Reports is A) Reasonable Without Inspection. B) Reasonable without coercion. C) Reasonable Without Exceptions. D) Reasonable but just barely. Show Answer Correct Answer: C) Reasonable Without Exceptions. 9. Not typically covered by homeowners insurance policies A) Product liability insurance. B) Vehicle insurance. C) Business interruption insurance. D) Home-based business. Show Answer Correct Answer: D) Home-based business. 10. Which of the following is an example of an operating expense for a business? A) Purchase of a new building. B) Dividend payments to shareholders. C) Loan interest payments. D) Salary payments to employees. Show Answer Correct Answer: D) Salary payments to employees. 11. When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that are expected to increase the firms profitability. A) False. B) True. Show Answer Correct Answer: A) False. 12. Money that is subtracted from one's bank account during a purchase is considered A) Income. B) Debit. C) Loan. D) Taxes. Show Answer Correct Answer: B) Debit. 13. High receivable turnover rate does not automatically mean good or efficient collection of the company. A) True. B) False. Show Answer Correct Answer: A) True. 14. A stakeholder is: A) Any person who has voting rights and receive dividends based on stock ownership of a corporation. B) A person who initially founded a firm and currently has management control over that firm. C) A creditor to whom a firm currently owes money. D) None of the above. Show Answer Correct Answer: B) A person who initially founded a firm and currently has management control over that firm. 15. The amount required by law for employers to withhold from earned wages to play taxes. A) OSHA. B) FICA. C) Federal Withholding Tax. D) State Withholding Tax. Show Answer Correct Answer: C) Federal Withholding Tax. 16. This is the total amount of net income the company decides to keep. A) Shareholder equity. B) Financial Income. C) Management Income. D) Retained Income. Show Answer Correct Answer: D) Retained Income. 17. What is a creditor? A) The person that collects your possessions if you don't pay your debt. B) Someone who the loan or debt is owed to. Show Answer Correct Answer: B) Someone who the loan or debt is owed to. 18. According to the traditional approach cost of capital affected by A) Debt-capital mix. B) Equity expenses mix. C) Debt-equity mix. D) Debt-interest mix. Show Answer Correct Answer: C) Debt-equity mix. 19. If customers pay their bills on time they will have A) A higher credit score. B) A lower credit score. C) The same credit score. D) None of above. Show Answer Correct Answer: A) A higher credit score. 20. Investment Decisions involve A) Capital Budgeting Decisions. B) Working Capital Decisions. C) Both of the above. D) None of the above. Show Answer Correct Answer: C) Both of the above. 21. All of the following are variables that can be manipulated to affect monetary policy except- A) Credit restrictions achieved via the banking system. B) Government expenditure on goods and services. C) The volume of money in circulation. D) The rate of interest. Show Answer Correct Answer: B) Government expenditure on goods and services. 22. The more principle (money) you invest the more you will make over the long-term, this is describing the following investment factor: A) Money. B) Time. C) Interest Rate. D) None of above. Show Answer Correct Answer: A) Money. 23. Modern approach focus on ..... A) Wise use of funds. B) Outsiders looking. C) Merger. D) None of these. Show Answer Correct Answer: A) Wise use of funds. 24. What does the R in SMART stand for? A) Readily Available. B) Relevant. C) Readily Available. D) Redundant. Show Answer Correct Answer: B) Relevant. 25. Which from the below are the avenues of Savings and Investment?i. Pension schemesii. Unit Trust of Indiaiii. Premiumsiv. Funds A) Option i, ii. B) Option ii, iii. C) Option iii, iv. D) Option iv, i. Show Answer Correct Answer: A) Option i, ii. 26. The type of preference share which is eligible for arrears of dividend A) Redeemable. B) Participating. C) Cumulative. D) Convertible. Show Answer Correct Answer: C) Cumulative. 27. Net pay is the pay you receive each pay period A) Before any deductions. B) After all taxes and deductions. C) After retirement only is deducted. D) None of above. Show Answer Correct Answer: B) After all taxes and deductions. 28. Insolvency happens when ..... A) The firm can meet its current obligations fast enough. B) The firm cannot meet its current obligations fast enough. C) The firm can meet its non-current obligations fast enough. D) The firm cannot meet its non-current obligations fast enough. Show Answer Correct Answer: B) The firm cannot meet its current obligations fast enough. 29. Which government agency is responsible for collecting federal income taxes? A) Internal Revenue (IRS). B) NC Department of Revenue. C) NC Department of Finance. D) Federal Bureau of Investigation. Show Answer Correct Answer: A) Internal Revenue (IRS). 30. ..... is wealth in the form of money or other assets owned by a person or organization, available for a particular purpose such as starting a company or investing. A) Consumer. B) Seller. C) Capital. D) Demand. Show Answer Correct Answer: C) Capital. ← 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