This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 26 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In financial management, which financial goal focuses on the long-term wealth of the shareholders? A) Profit Maximization. B) Revenue Maximization. C) Wealth Maximization. D) Market Share Maximization. Show Answer Correct Answer: C) Wealth Maximization. 2. James worked 28 hours this week and is paid $ 9.50 per hour. What is his gross pay for the week? A) $ 622.00. B) $ 270.00. C) $ 266.00. D) $ 265.00. Show Answer Correct Answer: C) $ 266.00. 3. What financial decision focuses on determining the portion of earnings to be distributed to shareholders as dividends and what portion to retain for reinvestment? A) Investment Decision. B) Financing Decision. C) Dividend Decision. D) Liquidity Decision. Show Answer Correct Answer: C) Dividend Decision. 4. And acquisition is the same thing as A) A takeover. B) An amalgamation. C) A merger. D) None of above. Show Answer Correct Answer: A) A takeover. 5. Wages are paid by the ..... A) Week. B) Month. C) Hour. D) Minute. E) Day. Show Answer Correct Answer: C) Hour. 6. ..... is the total amount of money owed to a business A) Accounts payable. B) Accounts receivable. C) Fixed assets. D) Equity. Show Answer Correct Answer: B) Accounts receivable. 7. Q3) Financial structure refers to ..... A) Short-term resources. B) All the financial resources. C) Long-term resources. D) All of these. Show Answer Correct Answer: B) All the financial resources. 8. "Shareholder wealth" in a firm is represented by ..... A) The number of people employed in the firm. B) The book value of the firm's assets less the book value of its liabilities. C) The amount of salary paid to its employees. D) The market price per share of the firm's common stock. Show Answer Correct Answer: D) The market price per share of the firm's common stock. 9. What is credit A) Borrowed money. B) Gold. C) A card in your wallet. D) A form of karma. E) A report. Show Answer Correct Answer: A) Borrowed money. 10. Which of the following is not usually considered a need? A) Food. B) Shelter (Somewhere to live). C) A Pair of Jordan 12's. D) None of above. Show Answer Correct Answer: C) A Pair of Jordan 12's. 11. The planning done for next one to two years is: A) Long term planning. B) Strategic planning. C) Short term planning. D) None. Show Answer Correct Answer: C) Short term planning. 12. Which of the following are all WANTS A) Food, Clothing, Housing. B) Food, Video Games, Housing. C) Iphone 11, Video Games, Concert tickets. D) None of above. Show Answer Correct Answer: C) Iphone 11, Video Games, Concert tickets. 13. When shareholders appoint financial managers to run firms and make investment decisions, this is called: A) Agency cost. B) Financing decision. C) Limited liability. D) Separation of ownership and control. Show Answer Correct Answer: D) Separation of ownership and control. 14. A firm should consider vertical integration when A) The competitive situation is highly volatile. B) Customer needs are evolving. C) The forms suppliers willingly cooporate with the firm. D) The form suppliers of raw materials are often unable to maintain quality standards. Show Answer Correct Answer: C) The forms suppliers willingly cooporate with the firm. 15. A financial manager's primary activities include making investment and financing decisions. A) True. B) False. Show Answer Correct Answer: A) True. 16. What time period does an income statement usually cover? A) 1-2 years. B) 1 week. C) 3-6 months or less. D) 5 years. Show Answer Correct Answer: C) 3-6 months or less. 17. What are the 6 questions to ask when applying for credit. A) What is the annual fee, What is the annual percentage rate, When are payments due, What is the minimum payment required each month, Is there a grace period, Are there other fees associated with the credit, such as minimum finance charges. B) What is the minimum payment required each month, Is there a grace period, Are there other fees associated with the credit, such as minimum finance charges, Is there a penalty for early payment, you don't need to ask questions-you just need to fill out the application. Show Answer Correct Answer: A) What is the annual fee, What is the annual percentage rate, When are payments due, What is the minimum payment required each month, Is there a grace period, Are there other fees associated with the credit, such as minimum finance charges. 18. For businesses that have operated for several years, the main source of budget information is A) The businesses' financial records. B) The Internet. C) The Small Business Administration. D) Business magazines and newspapers. Show Answer Correct Answer: A) The businesses' financial records. 19. Lf the credit sales of the firm are Rs. 6, 000, 000 and the average debtors are Rs. 1, 500, 000; then the receivables turnover is ..... Times. A) 2 times. B) 3 times. C) 4 times. D) 5 times. Show Answer Correct Answer: C) 4 times. 20. Practical application of time value of money A) Preparation of loan repayment schedule. B) Sinking fund creation. C) Valuation problems. D) All the above. Show Answer Correct Answer: D) All the 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