This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 35 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 35 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An ..... is a review of the financial statements of business and the accounting practices that were used to produce them ..... A) Income statement. B) Financial statement. C) Audit. D) Statement of cash flows. Show Answer Correct Answer: C) Audit. 2. An owner of shares in a company A) Shareholders. B) Employer. C) Employee. D) Labour. Show Answer Correct Answer: A) Shareholders. 3. Which of the following is typically considered an agency cost? A) Consultant fees. B) Cost of goods sold. C) Audit. D) Taxes. Show Answer Correct Answer: C) Audit. 4. What financial concept deals with the relationship between risk and return and is essential for making investment decisions? A) Net Present Value (NPV). B) Capital Budgeting. C) Risk-Return Tradeoff. D) Working Capital Management. Show Answer Correct Answer: C) Risk-Return Tradeoff. 5. Business finance is a part of A) Corporate finance. B) Private finance. C) Public finance. D) Personal finance. Show Answer Correct Answer: B) Private finance. 6. Which of the following bond that carries high yield and high risk? A) Zero Coupon Bond. B) Junk Bond. C) Bunny Bond. D) Bearer Bond. Show Answer Correct Answer: B) Junk Bond. 7. The particular combination of debts & Equity A) Capital. B) Capitalism. C) Capitalization. D) Capital structure. Show Answer Correct Answer: D) Capital structure. 8. What is the difference between Single & Double Entry financial recording? A) Double Entry reports are simpler than Single Entry which involves 4 input components. B) Single Entry is suitable for large businesses that are always growing while Double Entry is not. C) Double entry is useful for balancing debits and credits while single entry is for cash flow. D) Single for own business (single) Double for joint business (Couple). E) Single Entry contains calculations of Assets & Receivables while Double Entry does not. Show Answer Correct Answer: C) Double entry is useful for balancing debits and credits while single entry is for cash flow. 9. Type of income tax that is levied on income of individuals, household's partnership and sole-proprietorship. A) Personal Income tax. B) Taxable Income. C) Average Tax Rate. D) Corporation Income Tax. Show Answer Correct Answer: A) Personal Income tax. 10. Pertains to Current Assets and Liabilities A) Investing Activities. B) Operating Activities. C) Financing Activities. D) None of above. Show Answer Correct Answer: B) Operating Activities. 11. Internal Rate of Return (IRR) to all capital providers is equal: A) The hurdle rate of return to all capital providers. B) The actual return on total capital. C) The cost of capital. D) The total discounted free cash flows to all capital providers. Show Answer Correct Answer: B) The actual return on total capital. 12. For which of the following reason(s) profit maximization concept is criticized-1. It is vague conceptually.2. It ignores the timing of returns.3. It ignores the risk factor4. Its emphasis is generally on short-run projects. Select the correct answer from the options given below. A) 1. B) 1 & 2. C) 1, 2 & 3. D) 1, 2, 3 &4. Show Answer Correct Answer: D) 1, 2, 3 &4. 13. Returns after tax and before depreciation is taken in A) Urgency and ARR method. B) ARR method. C) PBP method. D) PBP and Urgency method. Show Answer Correct Answer: D) PBP and Urgency method. 14. The board of directors is responsible for managing day to day operation of business and carrying out the policies established by CEO. A) TRUE. B) FALSE . Show Answer Correct Answer: B) FALSE . 15. How many 'C's are taken into the consideration while deciding the credit policy of customer? A) Two. B) Three. C) Four. D) Five. Show Answer Correct Answer: D) Five. 16. Stocks, bonds and swaps are examples of ..... A) Musical instruments. B) Financial liabilities. C) Financial instruments. D) All of the above. Show Answer Correct Answer: C) Financial instruments. 17. The optimal capital structure is the one that ..... the price of the firm's stock, and this generally calls for a Debt/Capital Ratio that is ..... the one that maximizes expected EPS. A) Minimizes; lower than. B) Maximizes; greater than. C) Minimizes; greater than. D) Maximizes; lower than. Show Answer Correct Answer: D) Maximizes; lower than. 18. If net credit sales for a given year are RM600, 000 and the average accounts receivable is RM60, 000, what is the average days to collect receivables? (assume 360-days per year) A) 10. B) 60. C) 31. D) 36. Show Answer Correct Answer: D) 36. 19. At what rate of Corporate Income Tax (CIT) for 2015/2016 has been set to? A) 19%. B) 10%. C) 28%. D) 15%. Show Answer Correct Answer: C) 28%. 20. What is the present value annuity due factor of $ 1 at a discount rate of 15% for 15 years? A) $ 5.8474. B) $ 6.7245. C) 7.1324. D) 8.5143. Show Answer Correct Answer: B) $ 6.7245. ← 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