This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the differences of money market and capital market? A) No differences. B) Types of funds. C) One is short-term and the other is long-term. D) Both are suppliers of funds. Show Answer Correct Answer: C) One is short-term and the other is long-term. 2. Need A) Something you cannot live without. B) Something you do not have to have. C) Goal. D) Desire. Show Answer Correct Answer: A) Something you cannot live without. 3. What does financial leverage measured? A) No change with EBIT and EPS. B) The sensibility of EBIT with % change with respect to output. C) The sensibility of EPS with % change in the EBIT level. D) % variation in the level of production. Show Answer Correct Answer: C) The sensibility of EPS with % change in the EBIT level. 4. Traditional approach gave importance to ..... A) Procurement of funds. B) Utilization of funds. C) Wise use of funds. D) All of the above. Show Answer Correct Answer: A) Procurement of funds. 5. The analysis of actual movement of money inflow and outflow in an organisation is called A) Cash Flow. B) Fund flow. C) Capital Flow. D) No flow. Show Answer Correct Answer: A) Cash Flow. 6. Money that a person owes to another person or bank/credit card company is ..... A) Credit. B) Investment. C) Debt. D) Checking. Show Answer Correct Answer: C) Debt. 7. Which is NOT a human behavior offset? A) Make finances transactional. B) Pause. C) Stick to list. D) Reflect-why shop. E) Buy everything and all at once. Show Answer Correct Answer: E) Buy everything and all at once. 8. Participating in local causes or volunteering your time (and your staff's time) in community events says a lot about a company's sincerity. A) Volunteering. B) Ethical labor practices. Show Answer Correct Answer: A) Volunteering. 9. Ln Debtors Turnover Calculation, ..... is taken in the numerator A) Credit Sales. B) Debtors. C) Credit Purchase. D) Creditors. Show Answer Correct Answer: A) Credit Sales. 10. Net working capital refers to A) Total assets minus fixed assets. B) Current assets minus current liabilities. C) Current assetsets minus inventories. D) Current assets. Show Answer Correct Answer: B) Current assets minus current liabilities. 11. Below are the duties of the financial manager, EXCEPT ..... A) Managing the flow of funds. B) Planning to obtain funds and use of funds. C) Responsible for obtaining funds. D) Giving funds to the company. Show Answer Correct Answer: D) Giving funds to the company. 12. Current Assets are those assets which can be converted into cash within A) One month. B) 3 months. C) 12 months. D) 9 months. Show Answer Correct Answer: C) 12 months. 13. Intangible fixed assets is A) Land. B) Patentright. C) Machinery. D) Furniture. Show Answer Correct Answer: B) Patentright. 14. What are the advantages of a sole proprietorship? A) Limited liability. B) Ease of raising capital. C) Unlimited life. D) Low cost and ease of formation. Show Answer Correct Answer: A) Limited liability. 15. The shareholder's equity of a corporation has three basic components. Which does not belong to the group? A) Accounts Payable. B) Share Capital. C) Reserves. D) Retained Earnings. Show Answer Correct Answer: A) Accounts Payable. 16. Why reviewing and revising the progress of financial plan from time to time is important? A) To acheive our financial goals. B) To make sure the cash flow always positive. C) To avoid total expenses exceed total income. D) All above. Show Answer Correct Answer: D) All above. 17. A comprehensive financial plan should include wealth build-up, debts managements, insurance coverage, expenses and purification of property. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 18. At optimal capital structure A) Ko of firm is highest. B) Value of firm is maximum. C) Ko of firm is minimum. D) Both b and c. Show Answer Correct Answer: D) Both b and c. 19. What out of the following, financial planning helps to achieve? A) Arrangement of material. B) Financial control. C) Arrangement of machinery. D) All of above. Show Answer Correct Answer: B) Financial control. 20. How does borrowing contribute to a company's capital structure? A) Reduces capital. B) Increases equity. C) Adds to liabilities. D) Lowers profitability. Show Answer Correct Answer: C) Adds to liabilities. ← 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