This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 65 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 65 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The ..... model is usually considered the best of the capital budgeting decision-making models. A) Net past value (NPV). B) Net present value (NPV). C) Internal rate of return (IRR). D) Profitability index (PI). Show Answer Correct Answer: B) Net present value (NPV). 2. Books are on sale for $ 30 for 3 books. Calculate the unit price (per book) A) $ 10. B) $ 30. C) $ 90. D) None of above. Show Answer Correct Answer: A) $ 10. 3. What is NOT another name for a service fee with credit A) Administrative fee. B) Management fee. C) Handling fee. D) Annual fee. E) Adjustment fee. Show Answer Correct Answer: E) Adjustment fee. 4. The interaction process between a guest and a host happens at the guest's home. A) False. B) True. Show Answer Correct Answer: A) False. 5. What field of study is financial management associated with? A) Accounting. B) Mathematics. C) Economics. D) Engineering. Show Answer Correct Answer: A) Accounting. 6. Advances received is an example of A) Less of current asset more of current liability. B) Current liability. C) More of current asset less of current liability. D) Current asset. Show Answer Correct Answer: B) Current liability. 7. Non cash expenses are taken into consideration in A) Working capital. B) Sunk cost. C) Cash flows. D) Accounting profit. Show Answer Correct Answer: C) Cash flows. 8. What is the present value of Rs. 5, 00, 000 to be received after 5 years assuming 10 % interest rate?( DF-.621) A) 3, 10, 500. B) 2, 35, 500. C) 3, 15, 000. D) 3, 50, 500. Show Answer Correct Answer: A) 3, 10, 500. 9. Key principles that financial managers use when making business decisions include A) Time value of money. B) Tradeoff between return and risk. C) Cash. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. A decision to acquire a new and modern plant to upgrade an old one is A) Working Capital decision. B) Financing decision. C) Dividend Decision. D) Investments decision. Show Answer Correct Answer: D) Investments decision. 11. Which financial goal in financial management is associated with increasing the net worth of the shareholders? A) Wealth Maximization. B) Market Share Maximization. C) Profit Maximization. D) Revenue Maximization. Show Answer Correct Answer: A) Wealth Maximization. 12. The non discounting method that ignores the fact that profit can be reinvested A) Urgency. B) Pay back period. C) Average rate of return. D) None of above. Show Answer Correct Answer: C) Average rate of return. 13. The finance manager has to take decision with regards to the net profit distribution. A) Financial Decision. B) Dividend Decision. Show Answer Correct Answer: B) Dividend Decision. 14. Serenity, Elleanna, and Devon are discussing the concept of compound interest in financial management. Emma believes that compound interest is calculated on the initial principal, which also includes all of the accumulated interest from previous periods. Noah, on the other hand, thinks that compound interest is calculated only on the initial principal. According to the principles of financial management, who is correct? A) Serenity:Compound interest is not a concept in financial management. B) Elleanna:Compound interest is calculated on the initial principal, which also includes all of the accumulated interest from previous periods. C) Devon:Compound interest is calculated only on the initial principal. D) None of them are correct. Show Answer Correct Answer: B) Elleanna:Compound interest is calculated on the initial principal, which also includes all of the accumulated interest from previous periods. 15. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960 If total current liabilities amounted to 19, 900, Net Sales for the present year amounted to 480, 000 and the ending receivables totaled to 16, 500. What is the average collection period? A) 15 days. B) 13 days. C) 12 days. D) 14 days. Show Answer Correct Answer: C) 12 days. 16. A ..... is a type of credit score created by the Fair Isaac Corporation. Lenders use borrowers' these scores along with other details on borrowers' credit reports to judge how much the borrower can be trusted to pay back money owed based on their payment history A) Net Income. B) FICO score. C) Debt. D) Loan. Show Answer Correct Answer: B) FICO score. 17. The difference between present value of cash inflows and present value of cash outflows A) Gross present value. B) Capital. C) Net present value. D) None of these. Show Answer Correct Answer: C) Net present value. 18. We multiply foreign revenue with rate with respect to that country is A) Spot rate. B) Portfolio investments. C) Cash flows. D) Forward rate. Show Answer Correct Answer: A) Spot rate. 19. Which of the following is NOT an example of a financial transaction? A) Your parents use their credit card to pay for your current term's college tuition. B) You use the ATM at Heathrow airport in London to withdraw British pounds. C) Your roommate lends you $ 20 and you repay it in one week. D) All of the above are financial transactions. Show Answer Correct Answer: D) All of the above are financial transactions. 20. Stocks are bought and sold in ..... markets. A) Derivatives. B) Equity. C) Debt. D) Foreign exchange. Show Answer Correct Answer: B) Equity. 21. Dividend decisions involve A) Retained earnings. B) Dividends. C) Distributable profit. D) All of the above. Show Answer Correct Answer: D) All of the above. 22. Papasarami Co. currently has a capital structure that consists of 40% debt and 60% common equity. The company has a 40% tax rate. Currently the levered beta on the company's stock is 1.4. What is its unlevered beta? A) 1.0. B) .98. C) 1.10. D) 1.15. Show Answer Correct Answer: A) 1.0. 23. Type of finance which concerns with revenue and disbursement of Government. A) Personal Finance. B) Private Finance. C) Public Finance. D) Corporate Finance. Show Answer Correct Answer: C) Public Finance. 24. Indian Logistics' has its own warehousing arrangements at key locations across the country. Its warehousing services help business firms to reduce their overheads, increase efficiency and cut down distribution time. State whether the working capital requirements of 'Indian Logistics' will be high or low. A) High. B) Low. C) Doesn't effect. D) None of above. Show Answer Correct Answer: B) Low. 25. A financial report that provides information about a company's assets, capital and equity on a certain date is? A) Consolidate Statement of Changes in Equity. B) Income Statement. C) Balance Sheet. D) Cash Flow. Show Answer Correct Answer: C) Balance Sheet. 26. The granting of a loan and the creation of debt; any form of deferred payment. A) Loan. B) Economy. C) Credit. D) Debt. Show Answer Correct Answer: C) Credit. 27. The money market deals with long-term debt instruments and provides a platform for companies to issue new stocks. A) TRUE. B) FALSE . Show Answer Correct Answer: B) FALSE . 28. Working capital management is concerned with A) What long-term investments a firm should undertake. B) How a firm should raise money to fund its investments. C) How a firm can best manage its cash flows as they arise in its day-to-day operations. D) Managing a firm's capital stock. Show Answer Correct Answer: C) How a firm can best manage its cash flows as they arise in its day-to-day operations. 29. Debt includes ..... A) Retained earnings. B) Debentures. C) Reserves. D) Equity shares. Show Answer Correct Answer: B) Debentures. 30. The concept of Financial management is. A) Profit maximization. B) All features of obtaining and using financial resources for company operations. C) Organization of funds. D) Effective Management of every company. Show Answer Correct Answer: B) All features of obtaining and using financial resources for company operations. ← 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