Financial Management Quiz 71 (30 MCQs)

Quiz Instructions

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1. Earning per share is calculated as
2. BANK OVERDRAFT IS A FORM OF
3. What is an agreement between a lender and a borrower, who promises to repay the lender at a later date, with interest?
4. The higher the interest rate affects the time value rate of an investment by increasing the amount you will make. This describes which factor.
5. Peyton is running a small business. She is confused about the difference between profit and cash flow. Can you explain it to her?
6. The purpose of studying financial statements is .....
7. When you get a job you are required to complete a ..... form.
8. Which of the following do you NOT need to bring on your first day of work?
9. A trend is then determined by comparing percentage relationships. Base on the trends, interpretation, conclusions, and implications are drawn.
10. The method of converting the amount of the future cash into an amount of cash and cash equivalents value in present is known as
11. Which is not the current assets?
12. Which of the following is NOT an example of annuity cash flows?
13. To manage school finances effectively, the financial managers should anticipate capital expenditures and maximize maintenance costs.
14. Urgency method is suitable for short term projects
15. The tool used by companies to assess the company's financial performance based on comparative data for each item in the financial report is called:
16. A financial manager must choose between four alternative Assets 1, 2, 3, and 4. Each asset costs $ 35, 000 and is expected to provide earnings over a 3-year period as described below:Asset 1:Year 1-$ 21, 000 ; Year 2-$ 15, 000 ; Year 3-$ 6, 000 Asset 2:Year 1-$ 9, 000 ; Year 2-$ 15, 000 ; Year 3-$ 21, 000Asset 3:Year 1-$ 3, 000 ; Year 2-$ 20, 000 ; Year 3-$ 19, 000Asset 4:Year 1-$ 6, 000 ; Year 2-$ 12, 000 ; Year 3-$ 12, 000Which asset would the financial manager choose?
17. What is a potential consequence of poor financial management for a business?
18. One example of cash disbursement from financing activities is
19. Occurs when a business sells its stocks or bonds directly to savers, without going through any type of financial institution.
20. Selected information from the accounting records of R Company is as follows:Net sales for 2020-P800, 000Cost of goods sold for 2020-500, 000Inventory, December 31, 2019-200, 000Inventory, December 31, 2020-156, 000P's inventory turnover for 2020 is
21. In the grocery store, the food displays at the end of the aisle are the best buys.
22. Companies (A) and (B) have the same tax rate, sales, total assets, and basic earning power. Both companies have positive net incomes. Company (A) has a higher debt ratio and, therefore, a higher interest expense. Which of the following statements is CORRECT?
23. The objectives or goals of financial management are to maximize ..... ?
24. Q5) Which principle of sound financial planning relates to spreading investments across different asset types?
25. Financial leverage is also called as .....
26. Which one of the following items is not a method/tool of analysis of financial statements?
27. Refers to the fungible and tradable financial instrument used to raise capital in public and private markets.
28. Increasing the credit period from 30 to 60 days, would likely result in:
29. True/False:Current Ratio = (Current Assets-Inventory)/Current Liabilities
30. How many percentages should a person save from their monthly income?