This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 38 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 38 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The primary goal of financial management is to: A) Maximize shareholder wealth. B) Minimize costs. C) Increase sales. D) Improve efficiency. E) All of the above. Show Answer Correct Answer: A) Maximize shareholder wealth. 2. What financial ratio measures a company's ability to meet its short-term obligations using its most liquid assets? A) Debt-to-Equity ratio. B) Return on Investment (ROI). C) Current ratio. D) Price-Earnings (P/E) ratio. Show Answer Correct Answer: C) Current ratio. 3. Market value of shares is influenced by A) Financing decision. B) Investment decision. C) Dividend decision. D) Financial decision. Show Answer Correct Answer: D) Financial decision. 4. The capital budget associated with A) Long term and short term assets. B) Long term assets. C) Short term assets. D) Fixed assets. Show Answer Correct Answer: B) Long term assets. 5. Solvency: A) "The ability of a business to meet its short-term obligations.". B) "The ability of a business to repay its debt.". Show Answer Correct Answer: B) "The ability of a business to repay its debt.". 6. What is a common focus of financial management training? A) Marketing and sales. B) Money management and budgeting. C) Customer service and relationship building. D) Risk management and financial analysis. Show Answer Correct Answer: B) Money management and budgeting. 7. What are some basic objectives of financial management training? A) To improve credit management skills. B) To develop financial planning skills. C) To increase profit margins. D) To reduce operational costs. Show Answer Correct Answer: B) To develop financial planning skills. 8. The principle of investment is? A) Hoarding wealth so we can be arrogant. B) Postpone Consumption Today for Consumption Later. C) Make a profit in any way. D) None of above. Show Answer Correct Answer: B) Postpone Consumption Today for Consumption Later. 9. IF THE SALES OF A FIRM IS RS 10, 00, 000 AND CONTRIBUTION IS RS 2, 00, 000 THEN VARIABLE COSTS ARE A) RS 5, 00, 000. B) RS 8, 00, 000. C) RS 12, 00, 000. D) RS 20, 00, 000. Show Answer Correct Answer: B) RS 8, 00, 000. 10. Select the reasons for short term financing. A) Cash flow problems. B) Speculative productions. C) Increase inventory. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. What does "liquidity" in financial terms indicate about a company? A) Its ability to meet short-term obligations. B) The value of its long-term investments. C) The efficiency of its production processes. D) The total value of its assets. Show Answer Correct Answer: A) Its ability to meet short-term obligations. 12. Which of the following colors coresponds with the correct ticker information? A) Red is for higher. B) Green is for lower. C) Yellow is for no change. D) Orange is for lower. E) Blue is for higher. Show Answer Correct Answer: C) Yellow is for no change. 13. It is the amount which is earned without investing time, money A) Dividend. B) Amount. C) Leverage. D) Return earnings. Show Answer Correct Answer: C) Leverage. 14. What is not an expense category that we are required to allocate from our income? A) Zakat and Taxes. B) Investments (children's education, retirement, Hajj, etc.). C) Walking/Travelling. D) None of above. Show Answer Correct Answer: C) Walking/Travelling. 15. Which financial ratio measures a company's ability to meet its short-term obligations? A) Current ratio. B) Return on equity (ROE). C) Debt-to-equity ratio. D) Gross profit margin. Show Answer Correct Answer: A) Current ratio. 16. If Lanten's gross pay is $ 1, 800 this pay period and the Medicare tax is 1.45%, how much Medicare tax will be deducted from Lanten's paycheck? A) $ 35.18. B) $ 26.10. C) $ 19.15. D) None of above. Show Answer Correct Answer: B) $ 26.10. 17. What is NOT a human habit A) Smart purchasing. B) Impulsive shopping. C) Addictive. D) Emotional. E) Easily spiral out of control. Show Answer Correct Answer: A) Smart purchasing. 18. A mortgage payment is an example of a A) Periodic Expense. B) Fixed Expense. C) Variable Expense. D) None of above. Show Answer Correct Answer: B) Fixed Expense. 19. Corporate bonds A) Short term debt. B) Long term debt. Show Answer Correct Answer: B) Long term debt. 20. The money invested in short term assets of a firm is called A) Fixed capital. B) Dividend. C) Working capital. D) Both a and c. Show Answer Correct Answer: C) Working capital. ← 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