This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 32 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 32 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a financing decision? A) Providing for doubtful debts. B) Issuing a 5-year Bond. C) Depreciating a fixed asset. D) None of above. Show Answer Correct Answer: B) Issuing a 5-year Bond. 2. Protection is very important. Which of these does not fall into the financial protection category? A) Insurance. B) Hire Security Guards at Home. C) Emergency Fund. D) None of above. Show Answer Correct Answer: B) Hire Security Guards at Home. 3. Neveah, Samuel, and Stephen are studying for their financial management exam. They are discussing the concept of working capital. According to their understanding, what is the role of working capital in financial management? A) Neveah believes that working capital is not important in financial management. B) Samuel thinks that working capital is the difference between current assets and current liabilities. C) Stephen says that working capital is the total amount of a company's equity. D) They all agree that working capital is the amount of money a company has available to pay its short-term expenses. Show Answer Correct Answer: D) They all agree that working capital is the amount of money a company has available to pay its short-term expenses. 4. Capital markets are markets for short term debt instruments maturing in less than one year, and money markets are markets for long term debt instruments maturing in more than one year. A) True. B) False. Show Answer Correct Answer: B) False. 5. The action or process of allocating or distributing something A) Capital. B) Allocation. C) Bonds. D) Stocks. Show Answer Correct Answer: B) Allocation. 6. Examples of cash outflows A) Salaries, dividend. B) Electricity, rent. C) Allowances, investment. D) Interest, housebloan. Show Answer Correct Answer: B) Electricity, rent. 7. What happens if you don't pay your Credit Card? A) Your credit card gets revoked. B) Nothing. C) You Impact your interest rate. D) Your mom yells at you. E) You can't use your credit card. Show Answer Correct Answer: C) You Impact your interest rate. 8. What is the EAR if the APR is 5% and compounding is quarterly? A) Slightly above 5.09%. B) Slightly below 5.09%. C) Under 5.00%. D) Over 5.25%. Show Answer Correct Answer: A) Slightly above 5.09%. 9. Financial leverage is intended to A) Increase return on capital employed. B) Increase net equity returns. C) Decrease volatility in return. D) Increase return on capital employed and net equity. Show Answer Correct Answer: D) Increase return on capital employed and net equity. 10. What is the major objective of financial management? A) Profit Maximization. B) Wealth Maximization. C) None of them. D) None of above. Show Answer Correct Answer: B) Wealth Maximization. 11. Positive cash flow is also known as A) Surplus. B) Deficit. Show Answer Correct Answer: A) Surplus. 12. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960 If total current liabilities amounted to 19, 900. How much is the quick assets? A) 49, 850. B) 40, 890. C) 24, 890. D) 50, 890. Show Answer Correct Answer: D) 50, 890. 13. Which of the following is NOT in a bank statement? A) Deposits. B) Charges. C) Withdrawals. D) Beginning and ending balance for the period. E) Cash in hand. Show Answer Correct Answer: E) Cash in hand. 14. What does ARM stand for? A) An appendage from your torso with a hand and elbow. B) Adjustable rate mortgage. C) Adjustable rate money. D) Adjustable ratio mortgage. Show Answer Correct Answer: B) Adjustable rate mortgage. 15. Encik Sharul wants to buy a car in two years. His total monthly income is RM 5 600 and his total monthly fixed and variable expenses is RM 3 800. He plans to pay RM 8 400 as the down payment of the car. How much is his monthly savings in order to achieve his financial goal? A) RM75. B) RM275. C) RM350. D) RM180. Show Answer Correct Answer: C) RM350. 16. Which of these is not a part of Capital Structure? A) Equity Shares. B) Short-term borrowings. C) Debentures. D) Bonds. Show Answer Correct Answer: B) Short-term borrowings. 17. Future value interest factor takes A) Compounding. B) Inflation. C) Discounting. D) Deflation. Show Answer Correct Answer: A) Compounding. 18. Which is NOT a good investment? A) Stocks. B) Cars. C) Houses. D) Real estate. E) Solar panels. Show Answer Correct Answer: B) Cars. 19. Keshawn wants to buy a new shirt for $ 16.50, what would his total be with a sales tax of 7.5%? A) $ 17.50. B) $ 15.26. C) $ 17.74. D) $ 17.47. Show Answer Correct Answer: C) $ 17.74. 20. The primary goal of a publicly owned corporation is to ..... A) Maximize dividends per share. B) Maximize shareholder wealth. C) Maximize earnings per share after taxes. D) Minimize shareholder risk. Show Answer Correct Answer: B) Maximize shareholder wealth. ← 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