This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 29 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The efficient and effective management of funds. A) Finance. B) Evaluating Investments. C) Financial Management. D) Financial Institution. Show Answer Correct Answer: C) Financial Management. 2. Difference in what is owned, called assets, and what is owed, called liabilities is considered: A) Net Income. B) Net Worth. C) Balance. D) Interest. Show Answer Correct Answer: B) Net Worth. 3. A set of documents that outline essential financial facts about a new venture A) Financial plan. B) Financial forecast. C) Budget. D) Owner's equity. Show Answer Correct Answer: A) Financial plan. 4. Name the financial decision which relates to disposal of profits. A) Investment decision. B) Financing decision. C) Dividend decision. D) Capital budgeting decision. Show Answer Correct Answer: C) Dividend decision. 5. We bought a second home to rent. A) Spending. B) Investing. C) Saving. D) Donating. Show Answer Correct Answer: B) Investing. 6. Financial structure means A) Long term fund. B) Long term fund and current liabilities. C) Excess of liabilities over assets. D) None of the above. Show Answer Correct Answer: A) Long term fund. 7. The financial services sector is a ..... driver of a nation's economy. A) Tertiary. B) Secondary. C) Preliminary. D) Primary. Show Answer Correct Answer: D) Primary. 8. Isiah, Tessa, and Sarah are studying for their financial management exam. They are discussing the role of financial ratios. According to their understanding, what is the role of financial ratios in financial management? A) Isiah believes that financial ratios are only useful for large corporations. B) Tessa thinks that financial ratios can only be used for short-term financial analysis. C) Sarah says that financial ratios are irrelevant in financial management. D) They all agree that financial ratios help in analyzing and interpreting financial statements, assessing the financial health of a company, identifying areas of improvement, and making informed decisions. Show Answer Correct Answer: D) They all agree that financial ratios help in analyzing and interpreting financial statements, assessing the financial health of a company, identifying areas of improvement, and making informed decisions. 9. Joe works 50 hours and makes $ 12.50 an hour, what is his gross pay. (40 hrs. is a regular work week) A) $ 500.00. B) $ 187.50. C) $ 678.50. D) $ 687.50. Show Answer Correct Answer: D) $ 687.50. 10. Which of the following is NOT one of the five major types of insurance? A) Auto. B) House. C) Earthquake. D) None of above. Show Answer Correct Answer: C) Earthquake. 11. The income statement is sometimes called a profit and loss (P & L) statement. A) True. B) False. Show Answer Correct Answer: A) True. 12. The company's cost of capital is called ..... A) Leverage. B) Hurdle rate. C) Risk rate. D) Return rate. Show Answer Correct Answer: B) Hurdle rate. 13. Cost of advertising and printing prospectus is called A) Equity cost. B) Debt cost. C) Dividend cost. D) Floatation cost. Show Answer Correct Answer: D) Floatation cost. 14. All of these are actions creditors can take when individuals don't pay their loans EXCEPT A) Suing the borrower. B) Repossession. C) Foreclosure. D) Blackmail. E) Wage garnishment. Show Answer Correct Answer: D) Blackmail. 15. Companies (A) and (B) are both profitable, and they have the same total assets (TA), Sales (S), return on assets (ROA), and profit margin (PM). However, Company (A) has the higher debt ratio. Which of the following statements is CORRECT?Companies (A) and (B) are both profitable, and they have the same total assets (TA), Sales (S), return on assets (ROA), and profit margin (PM). However, Company (A) has the higher debt ratio. Which of the following statements is CORRECT? A) Company (A) has a lower total assets turnover than Company (B). B) Company (A) has a lower equity multiplier than Company (B). C) Company (A) has a higher fixed assets turnover than Company (B). D) Company (A) has a higher ROE than Company (B). Show Answer Correct Answer: D) Company (A) has a higher ROE than Company (B). 16. 2 types of bank accounts are: A) Direct Deposit & Loan. B) Checking & Direct Deposit. C) Checking & Savings. D) Credit & Debit. Show Answer Correct Answer: C) Checking & Savings. 17. When a corporation sells common stock to the general public for the first time is called? A) Initial public offering. B) Secondary market. C) Common stock. D) Preferred stock. Show Answer Correct Answer: A) Initial public offering. 18. The time lag between procurement of raw material and its conversion into cash and cash equivalents, is called: A) Production cycle. B) Processing cycle. C) Lead time. D) Operating cycle. Show Answer Correct Answer: D) Operating cycle. 19. A legal document that functions like cash. A) Debit Card. B) Credit Card. C) ATM. D) Check. Show Answer Correct Answer: D) Check. 20. Compute the EPS based on the given data below:Shares Outstanding-100, 000Year-end Net income-750, 000 A) 7 per share. B) 7.50 per share. C) 6 per share. D) 5 per share. Show Answer Correct Answer: B) 7.50 per share. ← 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