This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 25 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What day are financial managent lectures A) Monday. B) Tuesday. C) Wednesday. D) Thursday. E) Friday. Show Answer Correct Answer: B) Tuesday. 2. What is ignored in Principle of Profit Maximization? A) Time Value of Money. B) Risk. C) Wealth Creation. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. Value for money is an important objective for not-for-profit organizations. Which of the following actions is consistent with increasing value for money? A) Using a cheaper source of goods and thereby decreasing the quality of not-for-profit organization services. B) Searching for ways to diversify the finances of the not-for-profit organization. C) Decreasing waste in the provision of a service by the not-for-profit organization. D) Focusing on meeting the financial objectives of the not-for-profit organization. Show Answer Correct Answer: C) Decreasing waste in the provision of a service by the not-for-profit organization. 4. Which of the statement is not true? A) Debenture is a creditorship security. B) Ownership securities are represented by debentures. C) Retained profit is an internal source of financing. D) All of the above. Show Answer Correct Answer: B) Ownership securities are represented by debentures. 5. Purchase of treasury stock A) Investing Activities. B) Financing Activites. C) Operating Activities. D) None of above. Show Answer Correct Answer: B) Financing Activites. 6. Which of the following is not an objective of financial management? A) Maximization of wealth of shareholders. B) Maximization of profits. C) Mobilization of funds at an acceptable cost. D) Ensuring discipline in the organization. Show Answer Correct Answer: D) Ensuring discipline in the organization. 7. The service industry usually provides intangible products and services that cannot be felt by touch but can be felt by seen or heard. A) True. B) False. Show Answer Correct Answer: A) True. 8. The traditional department store of financeserving a variety of savers and borrowers. A) Commercial banks. B) Investment banks. C) Financial services corporation. D) None of above. Show Answer Correct Answer: A) Commercial banks. 9. Mr. Wong earned RM3000 as a graphic designer in a company. He also works as a feelancer in his free time and earned an extra income of RM300 for the last month. In the same month, Mr. Wong's total expenses was RM 1400. Calculate Mr. Wong's cash flow and status of his cash flow A) RM 1900, Positive Cash Flow. B) RM 1600, Positive Cash Flow. C) RM 1900, Negative Cash Flow. D) RM 1600, Negative Cash Flow. Show Answer Correct Answer: A) RM 1900, Positive Cash Flow. 10. Which item is not funded by your tax dollars? A) Public Library. B) Local Fire Department. C) Department of Transportation (road crew). D) Fast Food Restaurant. Show Answer Correct Answer: D) Fast Food Restaurant. 11. Forms of integrity values include: A) Enthusiastic, happy and earnest in working to be the best. B) Honestly behave positively and comply with company rules and social norms. C) Committed, dedicated and continues to develop oneself to provide more value to work. D) Trust each other and work together to realize a shared vision. Show Answer Correct Answer: B) Honestly behave positively and comply with company rules and social norms. 12. The real rate is 2.50% and inflation is 3.25%. What is the approximate nominal rate? A) 5.15%. B) 5.25%. C) 3.25%. D) 5.75%. Show Answer Correct Answer: D) 5.75%. 13. ..... is concerned with optimal procurement as well as usage of finance. A) Financial planning. B) Financial calculation. C) Financial management. D) Financial loss. Show Answer Correct Answer: C) Financial management. 14. Which of the following statements regarding horizontal analysis is false? A) Horizontal analysis can include more than two years of financial data. B) Horizontal analysis is facilitated by computing peso and percentage changes in financial statement analysis. C) Horizontal analysis analyzes ratio differences occurring between companies. D) Horizontal analysis can include the statement of cash flows. Show Answer Correct Answer: C) Horizontal analysis analyzes ratio differences occurring between companies. 15. What is installment credit? A) When you repay a loan over a set period of time with smaller payments to add up to a big payment. B) When you have to pay off the balance in full 30 days after you make the purchase. Show Answer Correct Answer: A) When you repay a loan over a set period of time with smaller payments to add up to a big payment. 16. What is not one of the three types of expenses A) Cosmetic payments. B) Utility payment. C) House payment. D) Car payment. E) Hidden. Show Answer Correct Answer: D) Car payment. 17. The arbitrary process is the behavioral foundation for the ..... A) MM approach. B) XX approach. C) Gorder approach. D) Miller approach. Show Answer Correct Answer: A) MM approach. 18. How is it possible for a firm to be profitable and still go bankrupt? A) The firm has positive net income but has failed to generate cash from operations. B) Earnings have increased more rapidly than sales. C) Net income has been adjusted for inflation. D) Sales have not improved even though credit policies have been eased. Show Answer Correct Answer: A) The firm has positive net income but has failed to generate cash from operations. 19. What is the primary concern of the financing function in financial management? A) Determining which investments to make. B) Managing a company's cash flow. C) Raising capital and managing debt. D) Distributing profits to shareholders. Show Answer Correct Answer: C) Raising capital and managing debt. 20. It is important to remember that the fundamental identity of accounting is the debit and credit recording activity where debits ..... equal credits. A) A. Always. B) B. Rarely. C) C Never. D) D. Sometimes. Show Answer Correct Answer: A) A. Always. ← 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