This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 33 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 33 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which THREE of the following are the main types of decision facing the financial manager in a company? A. Income decision B. Investment decision C. Dividend decision D. Financing decision E. Appraisal decision F. Budget decision A) A, B & D. B) B, C & D. C) C, D, F. D) B, D & F. Show Answer Correct Answer: B) B, C & D. 2. Positive Leverage effect brings A) Gain for equity shareholders. B) Loss for equity shareholders. C) None. D) None of above. Show Answer Correct Answer: A) Gain for equity shareholders. 3. Income not spent on current consumption A) Savings. B) Investment. Show Answer Correct Answer: A) Savings. 4. What is the cost of raising funds called? A) Flotation Cost. B) Marginal Cost. C) Fixed Cost. D) Variable Cost. Show Answer Correct Answer: A) Flotation Cost. 5. Jose earns $ 1, 000 a month. He spends 35% of his income on rent for his house. How much money is Jose spending on rent? A) $ 35. B) $ 300. C) $ 350. D) None of above. Show Answer Correct Answer: C) $ 350. 6. What is the formula in finding current ratio? A) $a.\ \frac{current\ asset}{current\ liabilities}$. B) $b.\ \frac{360}{investor\ turnover}$. C) $c.\ \frac{total\ liabilities}{total\ assets}$. D) $d.\ \frac{Gross\ \Pr ofit}{Net\ sales}$. Show Answer Correct Answer: A) $a.\ \frac{current\ asset}{current\ liabilities}$. 7. Which of the following is NOT true with regard to an amortization table? A) The interest payment for a period is equal to the periodic interest rate multiplied by the beginning-of-the-period principal balance. B) The remaining principal balance at the end of a payment period is equal to the beginning-of-the-period principal less the total payment. C) The total payment is calculated by using the present value of an annuity formula. D) All of the above are true. Show Answer Correct Answer: B) The remaining principal balance at the end of a payment period is equal to the beginning-of-the-period principal less the total payment. 8. Markets for short-term highly liquid debt securities. A) Money markets. B) Capital markets. C) Spot markets. D) Futures market. Show Answer Correct Answer: A) Money markets. 9. The NCDOR e-File for ..... and e-File for fee website has a list of approved tax preparation software for participating e-File providers. A) Fun. B) Free. C) Businesses. D) None of above. Show Answer Correct Answer: B) Free. 10. "Discount pricing" means the discount price is ..... than the original price? A) Higher. B) Lower. C) The Same. D) None of these. Show Answer Correct Answer: B) Lower. 11. ..... is also referred to as working capital position or short-term financial position. A) LIQUIDITY. B) PROFITABILITY. Show Answer Correct Answer: A) LIQUIDITY. 12. A project has the following projected cash inflows.Year 1-100, 000Year 2-125, 000Year 3-105, 000 Working capital is required to be in place at the start of each year equal to 10% of the cash inflow for that year.The cost of capital is 10%. What is the present value of the working capital? A) $ Nil. B) $ (30, 036). C) $ (2, 735). D) $ 33, 000. Show Answer Correct Answer: C) $ (2, 735). 13. If the if the company has ideal fund that means there is large amount of ..... ? A) Cost of capital. B) Cash. C) Working capital. D) Inventory. Show Answer Correct Answer: C) Working capital. 14. The symbol of unlevered beta A) B. B) $U_B$. C) $b_L$. D) $b_u$. Show Answer Correct Answer: D) $b_u$. 15. What happens when a business expands? A) Profits will increase. B) Employees will likely be fired. C) Marketing activities can be put on hold forever. D) New factories and equipment may be needed. Show Answer Correct Answer: D) New factories and equipment may be needed. 16. It means distributing and investing a company's financial resources in ways that will increase its efficiency, and maximize its profits A) Capital allocation. B) Capital. C) Allocation. D) Bonds. Show Answer Correct Answer: A) Capital allocation. 17. Types of expenditure in terms of funding source divided in ..... A) External financing and Internal financing. B) Own capital expenditure and foreign spending. C) Internal expenditure and intensive spending. D) Expenditure and Foreign spending. Show Answer Correct Answer: A) External financing and Internal financing. 18. The government finance which includs the principles and practices relating to the Procurement and management of funds for Central Government, and Local bodies is known as: A) Public finance. B) Business Finance. C) Private Finance. D) All of these. Show Answer Correct Answer: A) Public finance. 19. Projects are mutually exclusive if picking one project eliminates the ability to pick the other project. This mutually exclusive situation can arise for different reasons. Which of the statements below is NOT one of these reasons? A) One project will always have a negative NPV. B) There is a scarce resource that both projects would need. C) There is need for only one project, and both projects can fulfill that current need. D) By using funds for one project, there are not enough funds available for the other project. Show Answer Correct Answer: A) One project will always have a negative NPV. 20. Which is not a major Credit Card network company A) Capital One. B) Master Card. C) American express. D) Discover. E) Visa. Show Answer Correct Answer: A) Capital One. ← 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