This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 68 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 68 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Weaknesses of the IRR approach, among others A) Considers the time value of money. B) Considers all cash flows. C) Tells whether firm value is increased. D) May produce multiple IRRs. Show Answer Correct Answer: D) May produce multiple IRRs. 2. The formula to calculate Gross Profit is: A) Revenue-Owner's equity. B) COGS + Expenses. C) Net profit + Operating expenses. D) Sales-COGS. Show Answer Correct Answer: D) Sales-COGS. 3. Which taxes must employers make matching contributions to? A) Income taxes. B) Unemployment taxes. C) FICA (Social Security and Medicare) taxes. D) All of the above. Show Answer Correct Answer: C) FICA (Social Security and Medicare) taxes. 4. It refers to the renting out of immovable property by the bank to the businessmen. A) Merchant. B) Leasing. C) Mutual funds. D) None of above. Show Answer Correct Answer: B) Leasing. 5. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960 If total current liabilities amounted to 19, 900. How much is the current ratio? A) 2.56. B) 2.55. C) 3.00. D) 3.01. Show Answer Correct Answer: D) 3.01. 6. What is the only payment method that lets you buy now and pay later in installments A) Debit card. B) Credit card. C) Currency. D) None of above. Show Answer Correct Answer: B) Credit card. 7. Federal government tax revenues if it exceeds government spending then it is classified as A) Federal reserve. B) Budget deficit. C) Budget surplus. D) Federal budget. Show Answer Correct Answer: C) Budget surplus. 8. "Financial management is concerned with the acquisition, financing and management of assets with some overall goal in mind" . Whose definition is this? A) Solomon. B) J.F. Bradley. C) Khan & Jane. D) James C. Van Horne. Show Answer Correct Answer: D) James C. Van Horne. 9. E-filers are issued a Personal Identification Number or ..... allows the taxpayer to "sign" the return electronically. A) 1040EZ. B) PIN. C) D-400. D) None of above. Show Answer Correct Answer: B) PIN. 10. Fixed assets are items of value that will be held for more than one year. A) True. B) False. Show Answer Correct Answer: A) True. 11. The market for supplier and demanders for long term securities is ..... A) Money market. B) Capital market. Show Answer Correct Answer: B) Capital market. 12. Which type of financial records identify the amount assets have decreased in value due to their age and use? A) Cash records. B) Asset records. C) Depreciation records. D) Accounts payable records. Show Answer Correct Answer: C) Depreciation records. 13. Which of the following is not a variable expenses A) Groceries. B) Home utilities. C) Insurance payment. D) Allowance for parents. Show Answer Correct Answer: C) Insurance payment. 14. Safe mode by which firms perform worldwide business is A) Establishment of new subsidiary. B) Franchising. C) Licencing. D) International trade. Show Answer Correct Answer: D) International trade. 15. Which is NOT a necessary financial aspect to know? A) Painting art. B) Escrow amount. C) What your loan consists of (T's & C's). D) Pre-payment penalty. E) Start & End APR. Show Answer Correct Answer: A) Painting art. 16. According to financial experts, what portion of your income should be devoted to wants? A) 50. B) 20. C) 30. D) None of above. Show Answer Correct Answer: C) 30. 17. It is a financial institution licensed to receive deposits and make loans. A) Financial. B) Financial Banking. C) Finance. D) Bank. Show Answer Correct Answer: D) Bank. 18. How is financial management training beneficial for businesses? A) It improves customer satisfaction. B) It increases the availability of capital. C) It allows for more informed decision making. D) It provides tax benefits. Show Answer Correct Answer: C) It allows for more informed decision making. 19. Which of the following assets is not considered as Tangible asset: A) Goodwill. B) Cash. C) Furniture. D) Stock. Show Answer Correct Answer: A) Goodwill. 20. Which of the following is not the cause of under capitalization? A) Maintaining high standards of efficiency. B) Conservative dividend policy. C) Provides not enough depreciation to the fixed assets. D) Desire of control and trading of equity. Show Answer Correct Answer: C) Provides not enough depreciation to the fixed assets. 21. Which of the following is also known as intermediate approach A) NI Approach. B) MM Approach. C) Traditional Approach. D) NOI Approach. Show Answer Correct Answer: C) Traditional Approach. 22. The nonoperating cash flows associated with the end of the life of the project, is the meaning of ..... A) Terminal Cash Flow. B) Initial Outlay. C) Annual After-Tax Cash Flow. D) Terminal Value. Show Answer Correct Answer: A) Terminal Cash Flow. 23. Money invested in a business in return for a share in the profits from the business. A) Collateral. B) Interest. C) Equity Capital. D) All of these. Show Answer Correct Answer: C) Equity Capital. 24. The basic formula for bookkeeping is A) Asset = Liability. B) Assets = Liabilities + Capital. C) Liabilities = Assets + Capital. D) Capital = Liability. Show Answer Correct Answer: B) Assets = Liabilities + Capital. 25. It is a type of firm individual own a business A) Business. B) Management. C) Enterprise. D) All the above. Show Answer Correct Answer: C) Enterprise. 26. A sum of money paid regularly by a company to it's shareholders out of its Profit A) Division. B) Debenture. C) Dividend. D) Divided. Show Answer Correct Answer: C) Dividend. 27. What out of the following is the effect of optimum capital structure? A) Capital cost-minimum. B) Total value of company-maximum. C) Both (a) and (b). D) Market price of shares minimum. Show Answer Correct Answer: C) Both (a) and (b). 28. If net sales are RM1, 500, 000 and accounts receivable amount to RM300, 000, how long is the average collection period? A) NOT IN THE CHOICES. B) 36.00 days. C) 64.00 days. D) 72.00 days. E) 45.00 days. Show Answer Correct Answer: D) 72.00 days. 29. What caused Byju's financial statements to change and increase their losses? A) Lack of senior financial manager. B) Brand value declines. C) Investor lawsuits. D) Difficulty in paying interest. Show Answer Correct Answer: A) Lack of senior financial manager. 30. Jamie wrote a check to Food Lion for her groceries in the amount of $ 46.29 and wants to know her current balance. Based on the check register below she has $ 437.41, What is Jamie's current balance after the check clears? A) $ 437.41. B) $ 500.00. C) $ 391.12. D) None of above. Show Answer Correct Answer: C) $ 391.12. ← 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