This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 23 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The biggest accounting firms are known as the "Big Four." these include, PricewaterhouseCoopers, Deloitte Touche Tomatsu, Ernst & Young, and KPMG. A) True. B) False. Show Answer Correct Answer: A) True. 2. Tom works a 35 hour work week and makes $ 13.50 per hour, what is his gross pay? A) $ 474.50. B) $ 472.50. C) $ 470.00. D) $ 400.00. Show Answer Correct Answer: B) $ 472.50. 3. A company has 10% perpetual debt of Rs. 1, 00, 000. The tax rate is 35%. Which one of the following is the after-tax cost of capital assuming that the debt is issued at 10% premium? A) 10%. B) 5.91%. C) 6.5%. D) 7.22%. Show Answer Correct Answer: B) 5.91%. 4. Ratio to assess the company's ability to fulfill all financial obligations in the short term. What is this ratio called? A) Activity ratio. B) Leverage ratio. C) Financial ratio. D) Liquidity ratio. Show Answer Correct Answer: D) Liquidity ratio. 5. Guest-the one who offers the hospitality products/services A) True. B) False. Show Answer Correct Answer: B) False. 6. Fixed assets investment decision is called ..... A) Management of working capital. B) Capital budgeting. C) Financing decision. D) None of these. Show Answer Correct Answer: B) Capital budgeting. 7. Net Operating Income Approach proposes that higher the debt higher the ..... to shareholders A) Cost. B) Returns. C) Risk. D) Firm Value. Show Answer Correct Answer: C) Risk. 8. What does the S in SMART stand for? A) Spontaneous. B) Simple. C) Specific. D) Social. Show Answer Correct Answer: C) Specific. 9. Which among the following is not true about an operating lease1. Short term lease2. Irrevocable3. Lessee bears the cost of maintenance and insurance 4. Revocable A) 2 & 3. B) 2 & 4. C) Only 4. D) 1 & 4. Show Answer Correct Answer: A) 2 & 3. 10. Unearned income includes all except ..... A) Dividends. B) Tips. C) Interest. D) Pensions. E) Annuities. Show Answer Correct Answer: B) Tips. 11. Less Liquid A) Investment. B) Savings. Show Answer Correct Answer: A) Investment. 12. Pam needs to take money out of her account from an ATM what card will she use? A) Credit Card. B) Sam's Card. C) Debit Card. D) Macy's Card. Show Answer Correct Answer: C) Debit Card. 13. Another name for long term investment decision is ..... A) Financing decision. B) Dividend decision. C) Capital budgeting decision. D) Working capital decision. Show Answer Correct Answer: C) Capital budgeting decision. 14. IF THE SALES ARE RS 50, 00, 000 AND VARIABLE COSTS ARE 30, 00, 000 A) CONTRIBUTION RS 80, 00, 000. B) CONTRIBUTION RS 150, 00, 000. C) CONTRIBUTION RS 15, 00, 000. D) NONE OF THE ABOVE. Show Answer Correct Answer: D) NONE OF THE ABOVE. 15. Which instrument of money market is also called zero coupon bond? A) (a) Call money. B) (b) Commercial Paper. C) C) Certificate of Deposit. D) (d) Treasury Bill. Show Answer Correct Answer: D) (d) Treasury Bill. 16. Goodwin Transport paid $ 85 in dividends and $ 110 in interest expense during a given year. During that same year, the firm issued $ 40 in new equity shares, issued new debt of $ 65, and repaid $ 23 of old debt. What is the cash flow to creditors for that year? A) $ 68. B) $ 152. Show Answer Correct Answer: A) $ 68. 17. Managers of corporations need to act in an ethical manner A) Because ethics violations will be punished by the law. B) Because a business must be trusted by investors, customer and the public if it is to succeed. C) Because business managers must answer to a higher authority. D) Because ethical behavior is its own justification. Show Answer Correct Answer: B) Because a business must be trusted by investors, customer and the public if it is to succeed. 18. Portfolio Investment is dealing in A) Same securities. B) Short term investment. C) Different security. D) None. Show Answer Correct Answer: C) Different security. 19. Siskiyou, Inc. has total current assets of $ 1, 200, 000; total current liabilities of $ 500, 000; and long-term assets of $ 800, 000. How much is the firm's Total Liabilities & Equity? A) $ 2, 500, 000. B) $ 1, 300, 000. C) $ 2, 000, 000. D) $ 1, 800, 000. Show Answer Correct Answer: C) $ 2, 000, 000. 20. A debt evidenced by a "note" which specifies the principal amount, interest rate, and date of repayment. A) Loan. B) Principal. C) Credit. D) None of above. Show Answer Correct Answer: A) Loan. ← 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