This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 66 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 66 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Buy stocks issued by a firm that represents certain degree of power to make decisions for the firm A) Shareholders. B) Owner. C) Directors. D) Corporation. Show Answer Correct Answer: A) Shareholders. 2. Which one is classified as 'Assets'? A) Common stock. B) Inventories. C) Accounts payable. D) Bonds. Show Answer Correct Answer: B) Inventories. 3. Financial Planning link A) (a) Investment and dividend decision. B) (b) Investment and financing decision. C) C) Dividend and financing decision. D) (d) None of the above. Show Answer Correct Answer: B) (b) Investment and financing decision. 4. The total returns from the investment in share is classified as A) Dividend and Capital appreciation. B) Dividend and Market price of share. C) Dividend and Book Value of the shares. D) None of the above. Show Answer Correct Answer: A) Dividend and Capital appreciation. 5. The money market refers to trading in very ..... debt investments. A) Small. B) Short-term. C) Large. D) Long-term. Show Answer Correct Answer: B) Short-term. 6. ..... is specific risk factor A) Inflation risk. B) Market risk. C) Interate rate risk. D) Financial risk. Show Answer Correct Answer: D) Financial risk. 7. A financial goal must be specific, measurable, attainable, realistic and long time frame. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 8. ..... is concerned with the maximization of a firm's earnings after taxes A) EPS maximization. B) Shareholder wealth maximization. C) Profit maximization. D) Stakeholder maximization. Show Answer Correct Answer: C) Profit maximization. 9. Financial management is strategic planning, organizing, directing, and controlling financial undertakings in an organisation or an institute. True or False? A) False. B) True. Show Answer Correct Answer: B) True. 10. When you deposit money into your checking account, this is called a/an ..... A) Addition. B) Good Idea. C) Debit. D) Credit. Show Answer Correct Answer: D) Credit. 11. Financial planning is a ..... not a product. A) Activity. B) Process. C) Assignment. D) None of above. Show Answer Correct Answer: B) Process. 12. Which is a credit card bureau A) Experience. B) Carfax. C) Riviera Prepatory School. D) Authority. E) Experion. Show Answer Correct Answer: E) Experion. 13. A condition when the available capital is not enough to spend the business called ..... A) Active spending. B) Excessive spending. C) Passive expenditure. D) Inadequate expenditure. Show Answer Correct Answer: D) Inadequate expenditure. 14. G is a throwback to the days when people would call into a central number at their bank/financial institution in order to get balance. A) Telebanking. B) Venture capital. C) Automated teller machine. D) Credit cards. Show Answer Correct Answer: A) Telebanking. 15. The gross profit margin is unchanged, but the net profit margin declined over the same period. This could have happened if A) The Federal Government increased the tax rate. B) Cost of goods sold increased relative to sales. C) Dividends were decreased. D) Sales increased relative to expenses. Show Answer Correct Answer: A) The Federal Government increased the tax rate. 16. The main aim of the Finance manager is to A) Maximize the profit. B) Maximize the EPS. C) Maximize the wealth of the Shareholders. D) Maximize the Salaries of the Managers. Show Answer Correct Answer: C) Maximize the wealth of the Shareholders. 17. Is to mobilize the savings of the general public and invest them in stock market and money market. A) Merchant. B) Leasing. C) Mutual funds. D) None of above. Show Answer Correct Answer: C) Mutual funds. 18. The profits or income of an entity or organisation can be used: A) To distribute it as dividend to the shareholders. B) To retain it in business in the form of accumulated profits. C) Either a or b. D) None of these. Show Answer Correct Answer: C) Either a or b. 19. Online Banking can NOT be used to: A) Transfer money between accounts. B) Withdraw Cash. C) Set up direct bill payments or debits. D) Order Bank statements. Show Answer Correct Answer: B) Withdraw Cash. 20. Retained earnings are affected by A) (a) Financing decision. B) (b) Investment decision. C) C) Dividend decision. D) (d) Capital structure. Show Answer Correct Answer: C) C) Dividend decision. 21. What happens when bank statements are not reconciled? A) Fraud. B) Short of funds. C) Bank errors. D) Unauthorized withdrawls. E) All of the above. Show Answer Correct Answer: E) All of the above. 22. Pay for working more than 40 hours in one week is called? A) Gross Pay. B) Pay period. C) Overtime pay. D) Net pay. Show Answer Correct Answer: C) Overtime pay. 23. Tips presented to avoid financial problems include..... A) Just focus on investing. B) Keeping money under the pillow. C) Manage debt carelessly. D) Monitor and manage expenses wisely. Show Answer Correct Answer: D) Monitor and manage expenses wisely. 24. Capital Budgeting decision is a- A) Short term. B) Convertash. C) Daily routine work. D) Long term. Show Answer Correct Answer: D) Long term. 25. Which out of the following happens to be a financial decision? A) Investment decision. B) Financing decision. C) Dividend decision. D) All of these. Show Answer Correct Answer: D) All of these. 26. Cost of the company fund is the cost of capital A) True. B) False. Show Answer Correct Answer: A) True. 27. Which of the following is not a limitation of analysis of financial statements? A) Affected by personal bias. B) Lack of Qualitative Analysis. C) Based on accounting concepts. D) To know the financial strength. Show Answer Correct Answer: D) To know the financial strength. 28. You have purchased a Treasury bond that will pay $ 10, 000 to your newborn child in 15 years. If this bond is discounted at a rate of 3.875% per year, what is today's price (present value) for this bond? A) $ 10, 000. B) $ 5, 644. C) $ 5, 654. D) $ 5, 500. Show Answer Correct Answer: C) $ 5, 654. 29. ..... is concerned with maximisation of a firm's stock price A) Shareholder wealth maximisation. B) EPS maximisation. C) Profit maximisation. D) Stakeholder welfare maximisation. Show Answer Correct Answer: A) Shareholder wealth maximisation. 30. An effective financial plan should prioritise A) Liabilities payment. B) Variable expenses payments. C) Utility bills payments. D) Fixed expenses payments. Show Answer Correct Answer: D) Fixed expenses payments. ← 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