This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 106 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 106 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The five basic principles of finance include all of the following EXCEPT A) Cash flow is what matters. B) Money has a time value. C) Risk requires a reward. D) Incremental profits determine value. Show Answer Correct Answer: D) Incremental profits determine value. 2. Cost of equity of a company is 20 %. Rate of floatation cost is 5 %. Rate of personal income tax is 30 %. Calculate cost of retain earning? A) 21 %. B) 26 %. C) 14.7 %. D) 13.3 %. Show Answer Correct Answer: D) 13.3 %. 3. Having lots of credit cards shows that you are an important person. A) Fact. B) Fiction. Show Answer Correct Answer: B) Fiction. 4. Which branch of management does take care of the efficient planning and controlling of the financial activities of an organisation? A) Production management. B) Financial management. C) Marketing management. D) Personnel management. Show Answer Correct Answer: B) Financial management. 5. Which THREE of the following methods of financing the purchase of a non-current asset have an impact on the gearing ratio of a business?1. Short-term bank loan2. Surplus cash from the business bank account3. Ten year finance lease4. Introduction of new ordinary share capital5. Seven year Eurobond A) 1, 3, 5. B) 2, 3, 4. C) 1, 2, 3. D) 3, 4, 5. Show Answer Correct Answer: D) 3, 4, 5. 6. The primary aim of financial management is ..... A) Wealth maximisation. B) Increase the share price. C) Both A and B. D) Distributing maximum dividend. Show Answer Correct Answer: C) Both A and B. 7. Elliott works two jobs, the first he worked 7 hours and makes $ 24.25 and hour, the second he worked 5 hours and makes $ 18.50, what was his total gross pay for that day? A) $ 169.75. B) $ 265.00. C) $ 262.25. D) $ 200.50. Show Answer Correct Answer: C) $ 262.25. 8. Financial intermediaries help bring savers and borrowers together. A) True. B) False. Show Answer Correct Answer: A) True. 9. Decrease the purchase power A) Debenture. B) Shares. C) Inflations. D) Bonds. Show Answer Correct Answer: C) Inflations. 10. Which of the following are the factors that can influence a long-term financial plan?I-Inflation ratesII-electricity billIII-HobbyIV-Government policy A) I and II. B) I and IV. C) II and III. D) III and IV. Show Answer Correct Answer: B) I and IV. 11. Cash flows are the money that is available to a business at any given time. A) True. B) False. Show Answer Correct Answer: A) True. 12. Is a Graph which uses lines to connect Individual data points A) Picture. B) Line Graph. C) Chart. D) Diagram. Show Answer Correct Answer: B) Line Graph. 13. Working capital refers: A) Excess of Current Assets over Current Liabilities. B) Excess of Current Liabilities over Current Assets. C) Excess of Fixed Assets over Current Liabilities Fixed Cost. D) Excess of Current Assets over Fixed Assets. Show Answer Correct Answer: A) Excess of Current Assets over Current Liabilities. 14. You can invest your money at a rate of 7% per year. At this rate it will take you just over ..... years to double your money. Use the Rule of 72 to determine your answer. A) 4. B) 10. C) 5.5. D) There is not enough information to answer this question. Show Answer Correct Answer: B) 10. 15. Optimum capital structure is at which ..... is minimum and value of firm is maximum? A) A. EBIT. B) B. Weighted average cost of capital. C) Tax rate. D) None of these. Show Answer Correct Answer: B) B. Weighted average cost of capital. 16. An obligation of repayment owed by one party to a second party, which includes the payment of interest. A) Debt. B) Debit. C) Creditor. D) None of above. Show Answer Correct Answer: A) Debt. 17. Which of the following is an example of variable expenses? A) Housing loan installment. B) Petrol expenses. C) Insurance premiums. D) Car installment. Show Answer Correct Answer: B) Petrol expenses. 18. Used to pay for emergencies A) Investment. B) Savings. Show Answer Correct Answer: B) Savings. 19. Why are the TA's selected A) They have completed the highest level of business class. B) They all got 1600's on their SAT. C) They have all been accepted by Harvard Business School. D) Professor Dinter likes them. E) They took financial management last year. Show Answer Correct Answer: A) They have completed the highest level of business class. 20. Which of the following is NOT one of the primary financial statements used in financial reporting? A) Income statement. B) Cash flow statement. C) Sales statement. D) Balance sheet. Show Answer Correct Answer: C) Sales statement. ← 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