This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 31 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. For the purpose of reducing completion and increasing market share two companies with the same product combined this statement is about A) Horizontal merger. B) Vertical merger. C) None of a and b. D) A and b. Show Answer Correct Answer: A) Horizontal merger. 2. If an employee earns "$ 8.50" per hour, what is their "Overtime Rate" ? A) $ 12.50. B) $ 10.25. C) $ 12.75. D) $ 8.50. Show Answer Correct Answer: C) $ 12.75. 3. ..... is NOT a main category of financial management. A) Capital budgeting. B) Capital structure. C) Accounts payable management. D) Working capital management. Show Answer Correct Answer: C) Accounts payable management. 4. Which of the following is the correct order of financial management process? I) Carrying out financial planII) Setting goalsIII) Reviewing and revising the progressIV) Evaluating financial statusV) Creating financial plan A) II, IV, V, I, III. B) II, V, IV, III, I. C) IV, I, II, V, III. D) IV, II, V, I, III. Show Answer Correct Answer: A) II, IV, V, I, III. 5. Which is not a money tip? A) Create a budget. B) Limit credit card usage. C) Save some money each paycheck. D) Track expenses. E) Spend every dollar of your paycheck on wants. Show Answer Correct Answer: E) Spend every dollar of your paycheck on wants. 6. A balance sheet contains which of the following three accounts: A) Assets, revenues, liabilities. B) Assets, liabilities, owner's equity. C) Revenue, expenses, owner's equity. D) Expenses, assets, revenue. Show Answer Correct Answer: B) Assets, liabilities, owner's equity. 7. Costs that change at the same rate as the firm's sales, is the meaning of ..... A) Variable Cost. B) Fixed Cost. C) Flotation Cost. D) Sunk Cost. Show Answer Correct Answer: A) Variable Cost. 8. Depreciation is a source of cash inflow because A) It is a tax-deductible noncash expense. B) It supplies cash for future asset purchases. C) It is a tax-deductible cash expense. D) It is a taxable expense. Show Answer Correct Answer: A) It is a tax-deductible noncash expense. 9. Merger and acquisition between an Indian and foreign company requires approval from the A) Government of India. B) Reserve Bank of India. C) Government of India and reserve Bank of India both. D) None of above. Show Answer Correct Answer: C) Government of India and reserve Bank of India both. 10. In case of ..... One existing company takes over the business of another company and no new company is formed A) Merger. B) Amalgamation. C) Absorption. D) Demerger. Show Answer Correct Answer: C) Absorption. 11. ..... refers to a firm holding some cash to meet its routine expenses that are incurred in the ordinary course of business. A) Speculative motive. B) Transaction motive. C) Precautionary motive. D) Compensating motive. Show Answer Correct Answer: B) Transaction motive. 12. What is the formula for calculating the Net Present Value (NPV) of a project or investment? A) NPV = Initial Investment / Annual Cash Flow. B) NPV = Future Value / Present Value. C) NPV = Present Value-Initial Investment. D) NPV = Total Revenue-Total Expenses. Show Answer Correct Answer: C) NPV = Present Value-Initial Investment. 13. Capital structure shows A) Debtor-creditor ratio. B) Fixed assets-current assets ratio. C) Debt-equity ratio. D) Interest coverage ratio. Show Answer Correct Answer: C) Debt-equity ratio. 14. Net Present Value (NPV) is: A) Total discounted free cash flows to all capital providers minus total invested capital. B) Total undiscounted free cash flows to all capital providers minus total invested capital. C) Total discounted net profits minus total invested capital. D) Total discounted free cash flows to all capital providers minus invested equity capital. Show Answer Correct Answer: A) Total discounted free cash flows to all capital providers minus total invested capital. 15. Investment Decision is also called A) Capital budgeting. B) Current Decisions. C) Working capital decisions. D) All Above. Show Answer Correct Answer: A) Capital budgeting. 16. A ..... is a for profit institution that is run by share holders. A) Commercial bank. B) Credit unions. C) Retirement accounts. D) None of above. Show Answer Correct Answer: A) Commercial bank. 17. If Employee A, works 37 hours in one week and their hourly pay rate is:$ 10.25; what is their gross pay for the week? A) $ 300.25. B) $ 380.00. C) $ 379.25. D) $ 37.95. Show Answer Correct Answer: C) $ 379.25. 18. Which THREE of the following will adversely affect the reported earnings per share of a profit-seeking company for an accounting period?1. A larger than expected tax liability for the period.2. Interest payable to creditors is higher than expected.3. A larger than usual dividend declared for ordinary shareholders.4. The company issues some 7% preference shares at the beginning of the accounting period.5.The reversal of a provision made in the previous accounting period. A) 1, 2, 5. B) 2, 4, 5. C) 1, 2, 4. D) 2, 3, 4. Show Answer Correct Answer: C) 1, 2, 4. 19. How would payments for taxes be classified? A) Operating outflow. B) Operating inflow. C) Investing inflow. D) Investing outflow. Show Answer Correct Answer: A) Operating outflow. 20. Which of the following statements are correct? (1) Share option schemes always reward good performance by managers (2) Performance-related pay can encourage dysfunctional behaviour (3) Value for money as an objective in not-for-profit organisations requires the pursuit of economy, efficiency and effectiveness. A) 1 and 2 only. B) 1 and 3 only. C) 2 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: C) 2 and 3 only. ← 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