This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A contract between the issuer and the lended specifying the terms of repayments and interest to be charged. A) Bond. B) Mortgage. C) Payables. D) Revenues. Show Answer Correct Answer: A) Bond. 2. How should you write your signature on a check A) Print. B) Cursive. C) Hebrew. D) English. E) Italian. Show Answer Correct Answer: B) Cursive. 3. What is an example of a FIXED expense? A) New shoes. B) Groceries. C) Rent. D) None of above. Show Answer Correct Answer: C) Rent. 4. Reese's gross pay is $ 1, 900.00. All of his deductions total $ 550. What is his net pay? A) $ 680.00. B) $ 19.99. C) $ 1350.00. D) None of above. Show Answer Correct Answer: C) $ 1350.00. 5. If interest rates are currently 5 per cent then the NPV of $ 100 received next year will be $ 95 A) True. B) False, it will be less. C) False, it will be more. D) This cannot be determined. Show Answer Correct Answer: C) False, it will be more. 6. A smart shopper: A) Compares prices before buying. B) Charges lots of things on a credit card. C) Only uses an ATM card. D) Throws away receipts immediately. Show Answer Correct Answer: A) Compares prices before buying. 7. The amount of money you earn before taxes are taken out is your ..... A) Net Income. B) Gross Income. C) Savings. D) Balance. Show Answer Correct Answer: B) Gross Income. 8. Which formula is used to measure the degree of financial leverage A) EBT/EBIT. B) Contribution/EBIT. C) EBIT/EBT. D) EBIT/EBT. Show Answer Correct Answer: C) EBIT/EBT. 9. The ..... compensates the investor for the additional risk that the loan will not be repaid in full. A) Default premium. B) Inflation premium. C) Real rate. D) Interest rate. Show Answer Correct Answer: A) Default premium. 10. Cost of raising Funds A) Fixed Cost. B) Fluctuating cost. C) Floatation Cost. D) Variable cost. Show Answer Correct Answer: C) Floatation Cost. 11. The degree of combined leverage is A) The percentage change in sales divided by the percentage change in earnings per share. B) The percentage change in earnings before interest and taxes divided by the percentages change in sales. C) The degree of operating leverage divided by the degree of financial leverage. D) The percentage change in earnings per share divided by the percentage change in sales. Show Answer Correct Answer: D) The percentage change in earnings per share divided by the percentage change in sales. 12. In debenture, interest payable is A) Transferred to general reserve. B) Transferred to falling fund investment account. C) Charged against the firms profit. D) Appropriation of the company's profit. Show Answer Correct Answer: C) Charged against the firms profit. 13. Sophie earns $ 500 per month. She spends 15% on food/snacks. How much is she spending? A) $ 75. B) $ 100. C) $ 15. D) None of above. Show Answer Correct Answer: A) $ 75. 14. In weighted average cost of capital, a company can affect its capital cost through-1. Policy of capital structure 2. Policy of dividends 3. Policy of investment A) 1 only. B) 2 & 3. C) 1 & 3. D) All 1, 2 & 3. Show Answer Correct Answer: D) All 1, 2 & 3. 15. Identify the function of stock exchange A) (a) Trading and settlement procedure. B) (b) Dematerialisation. C) C) Pricing of securities. D) (d) Depository participants. Show Answer Correct Answer: C) C) Pricing of securities. 16. Helen has accumulated money from her daily allowance. She is looking for the best way to invest her money. She learned that Peter was in need of money for the expansion of his business. In this scenario, Peter is the ..... A) User of Funds. B) Sources of Funds. C) Owner. D) Customer. Show Answer Correct Answer: A) User of Funds. 17. A(n) would be an example of a principal, while a(n) would be an example of an agent. A) Shareholder; manager. B) Manager; owner. C) Accountant; bondholder. D) Shareholder; bondholder. Show Answer Correct Answer: A) Shareholder; manager. 18. The time value of money concept recognizes that: A) Money today is worth more than the same amount in the future. B) Money in the future is worth more than the same amount today. C) The value of money is constant over time. D) The value of money is determined by inflation. E) None of the above. Show Answer Correct Answer: A) Money today is worth more than the same amount in the future. 19. Financial analysis become useless because it: A) Measures the profitability. B) Measures the Solvency. C) Lacks Qualitative Analysis. D) Makes a comparative study. Show Answer Correct Answer: C) Lacks Qualitative Analysis. 20. When buying stocks, what's the easiest starting point A) Buy what you know. B) Buy the penny stocks. C) Buy the highest volume stock. D) Buy the most expensive stock. E) Buy stocks on the downswing. Show Answer Correct Answer: A) Buy what you know. ← 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