This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 101 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 101 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. Cost of the company fund is the cost of capital A) True. B) False. Show Answer Correct Answer: A) True. 3. Which of the following is not a limitation of analysis of financial statements? A) Affected by personal bias. B) To know the financial strength. C) Lack of Qualitative Analysis. D) Based on accounting concepts. Show Answer Correct Answer: B) To know the financial strength. 4. 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) $ 5, 654. B) $ 5, 500. C) $ 5, 644. D) $ 10, 000. Show Answer Correct Answer: A) $ 5, 654. 5. ..... is concerned with maximisation of a firm's stock price A) Shareholder wealth maximisation. B) Profit maximisation. C) Stakeholder welfare maximisation. D) EPS maximisation. Show Answer Correct Answer: A) Shareholder wealth maximisation. 6. An effective financial plan should prioritise A) Fixed expenses payments. B) Variable expenses payments. C) Utility bills payments. D) Liabilities payment. Show Answer Correct Answer: A) Fixed expenses payments. 7. The document that lenders ask for as a guarantee that a loan will be paid. A) Interest. B) References. C) Collateral. D) Advanced Payment. Show Answer Correct Answer: C) Collateral. 8. Capital budgeting technique is a fundamental requirement of ..... ? A) Cost of debt. B) Cost of capital. C) Capital structure. D) All the above. Show Answer Correct Answer: B) Cost of capital. 9. Financial markets are: A) Places where financial instruments are bought and sold. B) Institutions that facilitate the buying and selling of financial instruments. C) Both of the above. D) Neither of the above. Show Answer Correct Answer: A) Places where financial instruments are bought and sold. 10. Securities whose values are determined by the market price or interest rate of some other asset is called ..... ? A) Hedging. B) Equities. C) Derivatives. D) Liabilities. Show Answer Correct Answer: C) Derivatives. 11. The model that describes the relation between risk and expected return is A) APT model. B) CAPM model. C) Dividend growth model. D) None. Show Answer Correct Answer: B) CAPM model. 12. Adam, Robbie, and Sean are planning their financial future. What are the key components they should consider in their financial plan? A) Setting financial goals, creating a budget, managing debt, saving and investing, and planning for college. B) Setting financial goals, creating a budget, managing debt, saving and investing, and planning for a vacation. C) Setting financial goals, creating a budget, managing debt, saving and investing, and planning for a new car. D) Setting financial goals, creating a budget, managing debt, saving and investing, and planning for retirement. Show Answer Correct Answer: D) Setting financial goals, creating a budget, managing debt, saving and investing, and planning for retirement. 13. Which one is not the international trade flows? A) Regional trade bloc. B) Trade agreements. C) Tariffs. D) Exports and imports. Show Answer Correct Answer: C) Tariffs. 14. Blue print of Financial management is drawn by A) Treasurer. B) Finance manager. C) Auditor. D) Accountant. Show Answer Correct Answer: B) Finance manager. 15. What is the other name of long term decision? A) Capital Budgeting. B) Gross working capital. C) Financial management. D) Working Capital. Show Answer Correct Answer: A) Capital Budgeting. 16. The capital structure of a company consists of the following securities:Equity share capital of Rs. 10 each Rs. 1, 00, 0008% Debentures RS. 1, 00, 00010% Preference shares Rs. 1, 00, 000The amount of operating profit is Rs. 60, 000. The tax rate applicable to the company is 50%.You are required to calculate the financial leverage of the company A) 1.234. B) 1.524. C) 1.352. D) 1.154. Show Answer Correct Answer: D) 1.154. 17. Which financial statement is crucial for evaluating a company's profitability over a specific period? A) Balance Sheet. B) Income Statement. C) Cash Flow Statement. D) Statement of Retained Earnings . Show Answer Correct Answer: B) Income Statement. 18. What are the three financial statements? A) Balance sheet, equity statement, and revenue statement. B) Balance sheet, income statement, and cash-flow statement. C) Asset statement, liability statement, and income statement. D) Cash-flow statement, accrual statement, and depreciation statement. Show Answer Correct Answer: B) Balance sheet, income statement, and cash-flow statement. 19. Capital Structure (Capital Structure) is A) A combination of long-term equity financing and debt financing. B) A combination of large long-term financing and debt financing. C) A combination of long-term equity financing and short-term financing. D) A combination of long-term financing. Show Answer Correct Answer: A) A combination of long-term equity financing and debt financing. 20. How does financial management training help improve profitability? A) It reduces overhead costs. B) It improves marketing strategies. C) It creates more efficient accounting processes. D) It optimizes cash flow management. Show Answer Correct Answer: D) It optimizes cash flow management. ← 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