This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the main responsibility of financial managers? A) Deciding how to invest the firm's funds. B) To review and verify the accuracy of financial records and ensure that companies comply with tax laws. C) Monitor organizations' costs and create reports for budgetary, pricing, and cost analysis purposes. D) Take, care of all financial matters within a company, like keeping and interpreting financial records. Show Answer Correct Answer: A) Deciding how to invest the firm's funds. 2. What does FICA stand for A) Federal Insurance Contributions Act. B) Federal Insurance Committee Association. C) Federal Income Collecting Association. D) Federal Income communications act. E) Financial Independent Corporation of America. Show Answer Correct Answer: A) Federal Insurance Contributions Act. 3. The maximum amount of charges allwoed to an account. A) Annual fee. B) Credit limit. C) Variable-rate APR. D) Annual Percentage Rate (APR). Show Answer Correct Answer: B) Credit limit. 4. Which of these is not a way to cut expenses? A) Create a budget. B) Lower discretionary expenses. C) Pay of debt. D) Join hustlers university. E) Open a savings account. Show Answer Correct Answer: D) Join hustlers university. 5. If an SME's quick ratio is significantly lower than its current ratio, what might be a potential concern? A) Efficient inventory management. B) High liquidity risk. C) Strong solvency position. D) Effective receivables management. Show Answer Correct Answer: B) High liquidity risk. 6. Permanent working capital is funded using A) Bank Overdraft. B) Commercial Papers. C) Working capital loans. D) Long-term funds. Show Answer Correct Answer: D) Long-term funds. 7. What do credit cards NOT offer? A) Cash back. B) Low APR. C) Gas. D) Merchandice (Disney). E) Buy one Get one free. Show Answer Correct Answer: E) Buy one Get one free. 8. The functions of financial management are as follows: A) Planning, budgeting, monitoring, reporting. B) Planning, budgeting, monitoring, reporting. C) Planning, budgeting, controlling, auditing & reporting. D) Planning, buying, controliing, reporting. Show Answer Correct Answer: C) Planning, budgeting, controlling, auditing & reporting. 9. A company selling a bond is ..... money. A) Borrowing. B) Lending. C) Taking. D) Reinvesting. Show Answer Correct Answer: A) Borrowing. 10. The financial statements of a business enterprise include funds flow statement. A) True. B) False. C) I don't know. D) None of above. Show Answer Correct Answer: B) False. 11. A share that you cannot redeem during the lifetime of the business? A) Debenture Share. B) Preference Share. C) Equity Share. D) None of above. Show Answer Correct Answer: C) Equity Share. 12. Which TWO of the following statements are correct?1. Financial accounting is concerned with providing financial information to aid day to day control and decision making.2. Management accounting is concerned with future analysis of costing data to assist with decision making.3. Financial accounting is concerned with providing information about the results of past plans and decisions.4. Financial strategy is concerned with raising finance and allocating resources to achieve corporate objectives. A) 1, 2. B) 2, 3. C) 3, 4. D) 1, 4. Show Answer Correct Answer: D) 1, 4. 13. FW Co is expecting a receipt of $ 10, 000 (in real terms) in 1 year's time.If FW Co expects inflation to increase, and receipts are expected to rise in line with the general rate of inflation, what impact will this have on the present value of that receipt? A) Nil. B) Reduce. C) Increase. D) Cannot say. Show Answer Correct Answer: A) Nil. 14. . Long term fund sources are ..... A) Retained earnings. B) Debentures. C) Share capital. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. A schedule of how much consumers are willing and able to buy at a price A) Needs. B) Wants. C) Supply. D) Demand. Show Answer Correct Answer: D) Demand. 16. It is possible that the company has profits but its cash flow is negative. A) True. B) False. Show Answer Correct Answer: A) True. 17. Treasurer performs the functions of which of the following functions: A) Credit management. B) Cash management. C) Procurement of essential funds. D) All of these. Show Answer Correct Answer: D) All of these. 18. Capital budgeting: A) Involves evaluating investment opportunities to determine which projects will generate the highest return on investment. B) Helps businesses make informed financial decisions. C) Both of the above. D) Neither of the above. Show Answer Correct Answer: A) Involves evaluating investment opportunities to determine which projects will generate the highest return on investment. 19. What is NOT a benefit of good credit A) Cash back. B) Airline miles. C) Discounts. D) High interest rates on loans. E) Getting approved for loans. Show Answer Correct Answer: D) High interest rates on loans. 20. Current assets include A) Land. B) Building. C) Inventory. D) Furniture. Show Answer Correct Answer: C) Inventory. ← 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