This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Financial services are the processes by which consumers and businesses acquire financial ..... A) Instruments. B) Support. C) Goods. D) Advice. Show Answer Correct Answer: C) Goods. 2. Which agency regulate the money supply in india A) A. The government of india. B) B. Commercial bank. C) C. Reserve bank of india. D) D none of the above. Show Answer Correct Answer: C) C. Reserve bank of india. 3. A direct comparison of the benefit of the project with its cost (Benefit-Costs), is the meaning of ..... A) Net Present Value. B) Profitability Index. C) Internal Rate of Return. D) Payback Period. Show Answer Correct Answer: A) Net Present Value. 4. Why is shareholder's wealth maximization more relevant than profit maximization? A) It focuses on short-term goals. B) It ignores risk and uncertainty. C) It considers the timing of returns. D) It favours the choice of increasing product prices to keep the margins as high as possible. Show Answer Correct Answer: C) It considers the timing of returns. 5. . Traditional approach confines finance function only to ..... funds A) Raising. B) Mobilizing. C) Utilizing. D) Financing. Show Answer Correct Answer: A) Raising. 6. In the NPV model, all cash flows are stated ..... A) In future value dollars, and the total inflow is "netted" against the outflow to see if the net amount is positive or negative. B) In present value or current dollars, and the total inflow is "netted" against the initial outflow to see if the net amount is positive or negative. C) In present value or current dollars, and the outflow is "netted" against the total inflow to see if the gross amount is positive or negative. D) In future dollars, and the initial outflow is "netted" against the total inflow to see if the net amount is positive. Show Answer Correct Answer: B) In present value or current dollars, and the total inflow is "netted" against the initial outflow to see if the net amount is positive or negative. 7. You should not think about long-term financial decisions if you are only a student. A) True. B) False. Show Answer Correct Answer: B) False. 8. These loans are called back at any time. Normally, these loans are taken by bill brokers or stock brokers A) Call loans. B) Short term loans. C) Bills of exchange. D) Cash credit. Show Answer Correct Answer: A) Call loans. 9. From investment, profit will be earned that eventually will lead to business growth. A) Money Has Time Value. B) Risk Return Trade Off. C) Cash Flows Are Source Of Values. D) Market Prices Reflect Information. Show Answer Correct Answer: C) Cash Flows Are Source Of Values. 10. The income statement begins with revenue and subtracts various operating expenses until arriving at Earnings Before Interest and Taxes. Next, interest expense is subtracted to find the taxable income for the period. Then the appropriate taxes are calculated and subtracted. We finally arrive at the ....., the so-called bottom line of the income statement. A) After-tax income. B) Before-tax income. C) Net income. D) EBIT. Show Answer Correct Answer: C) Net income. 11. High Interest Coverage Ratio means companies can have more of borrowed funds. A) True. B) False. Show Answer Correct Answer: A) True. 12. Money supplied by investors, banks, or owners of a business. A) Property. B) Equity. C) Owner's equity. D) Capital. Show Answer Correct Answer: D) Capital. 13. A person or organization that uses a product or service A) Consumer. B) Debt. C) Interest. D) Economy. Show Answer Correct Answer: A) Consumer. 14. What is the fee paid for borrowing money called? A) Interest. B) Credit. C) Debit. D) Tax. Show Answer Correct Answer: A) Interest. 15. What is an example of a VARIABLE expense? A) Cable Bill. B) Water/electricity bill. C) Christmas gifts. D) None of above. Show Answer Correct Answer: B) Water/electricity bill. 16. What is NOT a reason to save money A) Peace of mind. B) Better future. C) More Money. D) For children's education. E) Family security in an emergency. Show Answer Correct Answer: C) More Money. 17. Q7) Which of the following is not a finance function? A) Investment decisions. B) Cost management. C) Human resource management. D) Risk management. Show Answer Correct Answer: C) Human resource management. 18. How is the capital gearing ratio calculated? A) Fixed Interest Bearing Debt / Equity Capital. B) By dividing the total equity by the total debt. C) By multiplying the total debt by the total equity. D) By subtracting the total debt from the total equity. Show Answer Correct Answer: A) Fixed Interest Bearing Debt / Equity Capital. 19. The word credit comes from the Latin word ..... A) 'CRED' meaning 'I trust'. B) 'CRED' meaning 'I believe'. C) 'CREDO' meaning 'I trust'. D) 'CREDO' meaning 'I believe'. Show Answer Correct Answer: D) 'CREDO' meaning 'I believe'. 20. ..... used to compare different firms at the same point in time. A) Industry comparative analysis. B) Cross-sectional analysis. C) Trend analysis. D) Combined analysis. Show Answer Correct Answer: B) Cross-sectional analysis. ← PreviousNext →Related QuizzesManagement QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8Financial Management Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books