This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which financing method typically involves an interest-bearing instrument? A) Internal funds. B) Venture capital. C) Debt financing. D) Equity financing. Show Answer Correct Answer: C) Debt financing. 2. The current ratio is A) Calculated by subtracting current liabilities from current assets. B) Used to evaluate a company's solvency and long-term debt paying ability. C) Calculated by dividing current liabilities by current assets. D) Used to evaluate a company's liquidity and short-term debt paying ability. Show Answer Correct Answer: D) Used to evaluate a company's liquidity and short-term debt paying ability. 3. Minor house improvement. A) Long-term goal. B) Short-term goal. Show Answer Correct Answer: B) Short-term goal. 4. Which of the following is not a commonly used method to collect payments on past due accounts? A) Sending notices. B) Taking legal action. C) Determining the applicant's credit worthiness. D) Employing a collection agency. Show Answer Correct Answer: C) Determining the applicant's credit worthiness. 5. How many percentages should a person save from their monthly income? How many hundredths should a person save from his monthly salary? A) 5%. B) 10%. C) 8%. D) 20%. Show Answer Correct Answer: B) 10%. 6. What best defines a budget? A) A plan people usually don't follow. B) Simply a good thing to have. C) A plan for earning and spending money. D) None of above. Show Answer Correct Answer: C) A plan for earning and spending money. 7. Who is the financial manager of VNM Joint Stock Company? A) Mr. Le Thanh Liem. B) Ms. Mai Kieu Link. C) Mr. Vinh Tran. D) Ms. Nguyen Thi Phuong. Show Answer Correct Answer: A) Mr. Le Thanh Liem. 8. In financial analysis, what does the term "working capital" refer to? A) Long-term assets. B) Current assets minus current liabilities. C) Total assets minus total liabilities. D) Revenue minus expenses. Show Answer Correct Answer: B) Current assets minus current liabilities. 9. Financial institution that gathers savings, paying interest or dividends to savers. A) Savings Banks. B) Thrift Banks. C) Commercial Banks. D) Rural Banks. Show Answer Correct Answer: A) Savings Banks. 10. An investment is indifferent when: A) The NPV to all capital providers is equal to the weighted average cost of capital. B) The NPV to all equity providers is equal to the cost of equity. C) Equity IRR is equal to the cost of equity. D) Equity IRR is equal to the weighted average cost of capital. Show Answer Correct Answer: C) Equity IRR is equal to the cost of equity. 11. ..... is at the heart of corporate finance, because it is concerned with making the best choices about project selection. A) Capital structure budgeting. B) Capital structure. C) Capital budgeting. D) Short-term budgeting. Show Answer Correct Answer: C) Capital budgeting. 12. How to calculate Gross Profit margin? A) COGS (COGS) / revenue (income). B) Gross Profit / Net. C) Gross Profit / revenue. D) Sales / Gross Profit. Show Answer Correct Answer: C) Gross Profit / revenue. 13. What is interest rate? A) A percent that is added to your income. B) A percent that is paid on money in a bank account or money owed. C) A percent that is taken out of your income. D) None of above. Show Answer Correct Answer: B) A percent that is paid on money in a bank account or money owed. 14. Bond backed by the various assets of the corporation is? A) Debenture. B) Mortgage. C) Convertible. D) Registered. Show Answer Correct Answer: B) Mortgage. 15. What does the term 'dividend decision' in financial management refer to? A) Deciding on the company's capital structure. B) Determining which investments to make. C) Deciding how much of the earnings to distribute to shareholders. D) Managing the day-to-day expenses of the company. Show Answer Correct Answer: C) Deciding how much of the earnings to distribute to shareholders. 16. What does internal source mean? A) A source from outside the business. B) A source from within the business. C) A source taken from international funding. D) A source from a specific investor. Show Answer Correct Answer: B) A source from within the business. 17. The trend of harmonization is A) A trend in which international companies try to use International Financial Reporting Standards (IFRS) in public company accounting. B) A trend in which international companies try to use Domestic Financial Reporting Standards (DFRS) in public company accounting. C) A trend in which international companies try to reduce transparency in public company accounting. D) A trend in which international companies try to limit transparency in public company accounting. Show Answer Correct Answer: A) A trend in which international companies try to use International Financial Reporting Standards (IFRS) in public company accounting. 18. The n i approach assumed A) Ke is to be same and constant. B) There are no taxes. C) K0 falls as the degree of leverage is increased. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. There are three types of leverage that a firm may use, except ..... A) Degree of Operating Leverage. B) Degree of Financial Leverage. C) Degree of Combined Leverage. D) Degree of Investing Leverage. Show Answer Correct Answer: D) Degree of Investing Leverage. 20. According to Net Income Approach a firm will have maximum value when the ..... minimum A) Equity. B) Debt. C) Cost of Equity. D) WACC. Show Answer Correct Answer: D) WACC. ← 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