This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 109 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 109 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Commercial banks in the U.S. often own the corporations they lend to. A) True. B) False. Show Answer Correct Answer: B) False. 2. Higher working capital usually results in A) Higher current ratio, higher risk and higher profits. B) Lower current ratio, higher risk and higher profits. C) Higher equitability, lower risk and lower profits. D) Lower equitability, lower risk and higher profits. Show Answer Correct Answer: A) Higher current ratio, higher risk and higher profits. 3. The ..... model answers one basic question:How soon will I recover my initial investment? A) Initial payback period. B) IRR. C) Payback period. D) Profitability index. Show Answer Correct Answer: C) Payback period. 4. What are the six things you should do to establish and maintain good credit. A) Never pay on time, get lots of credit cards, increase your debt to income ratio, get rid of savings accounts, check your credit report, pay off debt. B) Pay off debt, check your credit score, read your credit report, don't fix mistakes on it, pay your debts on time, only get a few credit cards. C) Pay on time, check your credit score, get lots of credit cards, open a savings account, check your credit report, pay off debt. D) Pay bills on time, Avoid late fees, Check your credit report, Pay off debt, Correct mistakes, Get current and stay current. Show Answer Correct Answer: D) Pay bills on time, Avoid late fees, Check your credit report, Pay off debt, Correct mistakes, Get current and stay current. 5. Mutual Funds and ETFs provide the investor a chance to diversify without having to buy shares in numerous corporations. A) True. B) False. Show Answer Correct Answer: A) True. 6. Making an investment in long term assets is A) Capital Budgeting. B) Capital Structure. Show Answer Correct Answer: A) Capital Budgeting. 7. The S in SMART Goals stands for A) Specific. B) Similar. C) Sporty. D) None of above. Show Answer Correct Answer: A) Specific. 8. Why do we need to study financial management? A) To find out Capital Expenditure. B) To Manage Operational Cash. C) To Lower Costs. D) All Answers are Correct. Show Answer Correct Answer: D) All Answers are Correct. 9. Compounding can thus be construed as interest on ..... the effect of which is to magnify returns to interest over time, the so-called "miracle of compounding." A) Investment. B) Principal. C) Capital. D) Interest. Show Answer Correct Answer: D) Interest. 10. Accounting profits and cash flows are generally: A) Unequal because of how income is recognized according to GAAP. B) Unequal because cash inflows must occur before revenue recognition. Show Answer Correct Answer: A) Unequal because of how income is recognized according to GAAP. 11. Sarah earns $ 600 a month. She spends 15% on rent. She puts 20% into her savings account. How much money does she have left each month? A) $ 90. B) $ 290. C) $ 390. D) None of above. Show Answer Correct Answer: C) $ 390. 12. If a salaried employee earns "$ 77, 500 a year and is paid "bi-monthly", how much is their gross pay per pay period. A) $ 6, 458.33. B) $ 3, 875.00. C) $ 3, 229.16. D) $ 3, 229.17. Show Answer Correct Answer: D) $ 3, 229.17. 13. The role of the VP for Finance is to determine the appropriate capital structure of the company. A) True. B) False. Show Answer Correct Answer: A) True. 14. The long term plan when breaked into smaller plan is: A) Tactical Plan. B) Strategic Plan. C) Operational Plan. D) None. Show Answer Correct Answer: A) Tactical Plan. 15. Sale of land from book value A) Investing Activities. B) Financing Activities. C) Operating Activities. D) None of above. Show Answer Correct Answer: A) Investing Activities. 16. Municipal bonds A) Short term debt. B) Long term debt. Show Answer Correct Answer: B) Long term debt. 17. A new project being considered by BLW Co would require 1, 000 hours of skilled labour. The current workforce is already fully employed but more workers can be hired in at a cost of $ 20 per hour. The current workers are paid $ 15 per hour on a project that earns a contribution of $ 10 per hour. What is the relevant cost of labour to be included in the project appraisal? A) $ 10, 000. B) $ 15, 000. C) $ 20, 000. D) $ 25, 000. Show Answer Correct Answer: C) $ 20, 000. 18. Capital Structure is called ..... A) Quantitative aspect. B) Qualitative aspect. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: B) Qualitative aspect. 19. Risk management: A) Helps identify and mitigate financial risks. B) Protects a company's assets. C) Reduces the company's exposure to risk. D) All of the above. Show Answer Correct Answer: A) Helps identify and mitigate financial risks. 20. The method that converts the amount of present cash into an amount of cash of equivalent value in future is A) Budgeting. B) Discounting method. C) Both. D) Compounding method. Show Answer Correct Answer: B) Discounting method. ← 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