This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 19 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In the paint industry, various raw materials are mixed in different proportions with petroleum for manufacturing different kinds of paints. One specific raw material is not readily and regularly available to the paint manufacturing companies. Bonler Paints Company is also facing this problem and because of this there is a time lag between placing the order and the actual receipt of the material. But, once it receives the raw materials, it takes less time in converting it into finished goods.Identify the factor affecting the working capital requirements of this industry. A) Availability of Raw Material. B) Production cycle. C) Nature of business. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. X ltd issues Rs. 50, 000 8% debentures at a discount of 5%. The tax rate is 50% the cost of debt capital is ..... A) 4%. B) 4.2%. C) 4.6%. D) 5%. Show Answer Correct Answer: B) 4.2%. 3. High operating leverage indicates a company has A) High fixed cost. B) Low variable cost. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 4. The interest rate that may be charged after a credit card account is opened. A) Introductory rate. B) Annual fee. C) Variable-rate APR. D) Penalty APR. Show Answer Correct Answer: A) Introductory rate. 5. To make a profit, commercial banks ..... on the money that they lend than the interest they pay on savings accounts. A) Charge more interest. B) Pay more interest. C) Charge less interest. D) Pay less interest. Show Answer Correct Answer: A) Charge more interest. 6. Markets in which participants agree today to buy orsell an asset at some future date. A) Spot markets. B) Futures market. C) Money markets. D) Capital markets. Show Answer Correct Answer: B) Futures market. 7. The following shows part of Mr Jason's financial management process.To save for emergency fundTo buy a laptopTo buy a terrace house in 10 years by paying RM60 000 as a down payment.What step in the financial management process did Mr Jason take? A) Evaluating financial status. B) Carrying out financial plan. C) Setting financial goals. D) Creating a financial plan. Show Answer Correct Answer: C) Setting financial goals. 8. You buy a copy of your favorite movie for $ 23.45. You give the clerk $ 25. How much change will you receive? A) $ 1.50. B) $ 1.55. C) .95. D) $ 1.56. Show Answer Correct Answer: B) $ 1.55. 9. Short-term solvency is another term for A) Liquidity. B) Stability. C) Profitability. D) Marketability. Show Answer Correct Answer: A) Liquidity. 10. Objectives of financial management A) Profit maximization. B) Wealth maximization. C) Return maximization. D) All of these. Show Answer Correct Answer: D) All of these. 11. Sign the back of this card in the authorized signature box. A) Debit Card. B) Check. C) Deposit Slip. D) Check Register. Show Answer Correct Answer: A) Debit Card. 12. Securities exchange market and over-the-counter (OTC) market such as NASDAQ, London Stock Exchange and New York Stock Exchange are the example of ..... for Bursa Malaysia issuer. A) Initial public offering. B) Secondary market. C) Common stock. D) Preferred stock. Show Answer Correct Answer: B) Secondary market. 13. The objectives of financial management are the following; Except ..... A) To ensure a regular and adequate supply of funds to the concern. B) To ensure adequate returns to the shareholders which will depend upon the earning capacity, the market price of the share, expectations of the shareholders. C) To ensure safety on investment, i.e, funds should be invested in safe ventures so that an adequate rate of return can be achieved. D) To ensure optimum funds utilization. Once the funds are procured, they should be utilized in the minimum possible way at the high cost. Show Answer Correct Answer: D) To ensure optimum funds utilization. Once the funds are procured, they should be utilized in the minimum possible way at the high cost. 14. Financial planning and budgeting: A) Helps businesses set financial goals, allocate resources, and create budgets to guide their operations. B) Ensures that a company has the resources it needs to achieve its goals. C) Both of the above. D) Neither of the above. Show Answer Correct Answer: A) Helps businesses set financial goals, allocate resources, and create budgets to guide their operations. 15. Q6) What external factor can influence an individual's financial plan in terms of investment decisions? A) Personal hobbies. B) Family traditions. C) Legislative changes. D) Spending habits. Show Answer Correct Answer: C) Legislative changes. 16. Marco, Makenna, and Zach are studying for their financial management exam. They are discussing the concept of net present value (NPV) in investment decisions. Can you explain it to them? A) Net present value is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. B) Net present value is the total amount of a company's equity. C) Net present value is not a concept in financial management. D) Net present value is the total amount of fixed costs that a company has. Show Answer Correct Answer: A) Net present value is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. 17. Certificate of debt issued sold by institution, company or bythe government as a means of borrowing long-term funds A) Capital. B) Capital allocation. C) Stock. D) Bonds. Show Answer Correct Answer: D) Bonds. 18. The Quick Ratio excludes which asset from the calculation? A) Cash. B) Inventory. C) Accounts Receivable. D) Prepaid Expenses. Show Answer Correct Answer: B) Inventory. 19. The net profits decision has to be made by the finance manager. This can be done in two ways:Dividend declaration or Retained profits A) Investment of funds. B) Disposal of surplus. C) Choice of sources of funds. D) Management of cash. Show Answer Correct Answer: B) Disposal of surplus. 20. If actual achievements do not match thestandards, management can do: A) Actual performance can be improved to reach the standards,. B) Strategiescan be revised. C) Performance standards can be lowered. D) All of above. Show Answer Correct Answer: D) All of above. ← 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