This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An annuity is a financial product that pays out a ..... stream of payments to an individual, and these financial products are primarily used as an income stream for retirees. A) Large. B) Small. C) Fixed. D) Variable. Show Answer Correct Answer: C) Fixed. 2. What is NOT included in operating expenses is A) Sales Costs. B) Marketing Costs. C) General & admin costs. D) Interest costs. Show Answer Correct Answer: D) Interest costs. 3. ..... is the main form used to file annual income tax return A) 1040. B) W-2. C) 1099-MISC. D) 1009-INT. E) 1009-DIV. Show Answer Correct Answer: A) 1040. 4. This statement presents the result of the firm's operation or performance for a given time A) Statement of Financial Position. B) Income Statement. C) Statement of Comprehensive Income. D) Statement of Changes in Equity. Show Answer Correct Answer: B) Income Statement. 5. Of the following, which is NOT one of the four main areas of finance? A) International finance. B) Corporate finance. C) All are considered main areas of finance. D) . Investments. Show Answer Correct Answer: C) All are considered main areas of finance. 6. If fixed operating cost is high, a firm should prefer A) (a) Debt. B) (b) Equity. C) C) Both (a) and (b). D) (d) None of the above. Show Answer Correct Answer: B) (b) Equity. 7. PT Asia Inc is considering a project that has an initial after-tax outlay or after-tax cost of $ 350, 000. The respective future cash inflows from its five-year project for years 1 through 5 are $ 75, 000 each year. PT Asia Inc expects an additional cash flow of $ 50, 000 in the fifth year. The firm uses the net present value method and has a discount rate of 10%. Will PT Asia Inc accept the project? A) PT Asia Inc accepts the project because it has an NPV greater than $ 5, 000. B) PT Asia Inc rejects the project because it has an NPV less than $ 10. C) PT Asia Inc accepts the project because it has an NPV greater than $ 18, 000. D) PT Asia Inc rejects the project because it has an NPV less than $ 0. Show Answer Correct Answer: D) PT Asia Inc rejects the project because it has an NPV less than $ 0. 8. Receipts from contracts held for dealing and trading purposes A) Operating Activities. B) Financing Activities. C) Investing Activities. D) None of above. Show Answer Correct Answer: A) Operating Activities. 9. Its function is to provide quantitative information primarily, financial in nature about economic entities that is intended to be useful in economic decisions. A) Financial Management. B) Accounting. C) Accounting Principles. D) Finance. Show Answer Correct Answer: B) Accounting. 10. The cost of equity share or debt is known as ..... A) The specific cost of capital. B) The related cost of capital. C) The burden on the shareholder. D) None of the above. Show Answer Correct Answer: A) The specific cost of capital. 11. Sue works a 53 hour work week (40 is a regular week), and makes $ 17.50 per hour-what is her gross pay with her overtime? A) $ 700.00. B) $ 341.25. C) $ 1, 200.25. D) $ 1, 041.25. Show Answer Correct Answer: D) $ 1, 041.25. 12. .... is a motive of holding cash? A) Transaction motive. B) Precaution motive. C) Capital investment. D) None of above. Show Answer Correct Answer: B) Precaution motive. 13. ..... is the time span between acquisition of goods and realisation of sale proceeds. A) Working Capital. B) Payback period. C) Operating cycle. D) Account receivable period. Show Answer Correct Answer: C) Operating cycle. 14. To buy securities, i.e., share or debentures, it is compulsory to open A) (a) Current Account. B) (b) Demat Account. C) C) Fixed Deposit Account. D) D) Recurring Account. Show Answer Correct Answer: B) (b) Demat Account. 15. What is the primary goal of finance? A) To minimize risks. B) To maximize liquidity. C) To maximize profit. D) None of above. Show Answer Correct Answer: C) To maximize profit. 16. Refers to a place where potential buyers and sellers get together totrade goods and services, as well as the transactions between them. A) Finance. B) Market. C) Allocation. D) Bonds. Show Answer Correct Answer: B) Market. 17. Cash flow from assets is derived from ..... A) Cash flow from creditors and cash flow from investing activities. B) Cash flow from operating activities and cash flow from financing activities. C) Cash flow from operating activities and cash flow from investing activities. D) Cash flow from financing activities and cash flow from investing activities. Show Answer Correct Answer: C) Cash flow from operating activities and cash flow from investing activities. 18. What are the advantages of property investment? A) Property values tend to be stable. B) The property does not require special maintenance. C) Property is easy to resell. D) Property does not require financial planning. Show Answer Correct Answer: A) Property values tend to be stable. 19. Income Statement is a financial report that summarizes: A) Company business results. B) 3rd party loan proceeds. C) Proceeds from the issuance of shares. D) Answers a, b and c are all correct. Show Answer Correct Answer: A) Company business results. 20. When do we set aside the money for the 10% savings? A) After engaging the expenses. B) Before engaging the expenses. Show Answer Correct Answer: B) Before engaging the expenses. ← 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