This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 42 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 42 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The extent to which an organisation uses fixed cost on its total structure is called A) Overall leverage. B) Financial leverage. C) Fixed Leverage. D) Operating leverage. Show Answer Correct Answer: D) Operating leverage. 2. Which is not a qualitative factor affecting a firm's investment appraisal decisions? A) Aims and objectives. B) Risk. C) The selected discount factor. D) Impact on the environment. Show Answer Correct Answer: C) The selected discount factor. 3. What is the difference between capital and revenue? A) Capital is money earned, revenue is money spent. B) Capital is money spent, revenue is money earned. C) Capital is money used for investments, revenue is used for expenses. D) Capital is money used for expenses, revenue is used for investments. Show Answer Correct Answer: B) Capital is money spent, revenue is money earned. 4. External sources of finance do not include: A) Retained earnings. B) Overdraft. C) Leasing. D) Debentures. Show Answer Correct Answer: A) Retained earnings. 5. A weekly newspaper ad and a monthly lease fee for a credit card machine are both ..... A) Variable costs. B) Variable expenses. C) Fixed costs. D) Incidental needs. Show Answer Correct Answer: C) Fixed costs. 6. A finance manager has to make estimation with regards to capital requirements of the company A) Estimation of Capital Requirements. B) Determination of Capital Composition. Show Answer Correct Answer: A) Estimation of Capital Requirements. 7. Is a market where buyers and sellers trade commodities, foreign exchange and financial securities. A) Financial market. B) Market. C) Finance. D) Asset. Show Answer Correct Answer: A) Financial market. 8. A method of inventory recording which produce high inventory in balance sheet is classified as A) Last out receivable. B) First out receivable. C) First in first out. D) Last in first out. Show Answer Correct Answer: C) First in first out. 9. The principal savers in the financial markets are A) Businesses. B) Businesses. C) Individuals. D) Governments. Show Answer Correct Answer: C) Individuals. 10. Failure to read and understand the information in the Notes to the Financial statements may be obscure managers in evaluating the degree of risk. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 11. The ..... reports the revenue and expenses of a business for a specific time period and shows a net income or a net loss. A) Income statement. B) Accounts payable. C) Owner's equity. D) Financial statement. Show Answer Correct Answer: A) Income statement. 12. What are the five C's of credit? A) Capacity, Coloring, Clearing, Creativeness, Coneheads. B) Capacity, Collection, Collateral, Common Sense, Capital. C) Capacity, Clearance, Collateral, Character, Capital. D) Capacity, Conditions, Collateral, Character, Capital. Show Answer Correct Answer: D) Capacity, Conditions, Collateral, Character, Capital. 13. Name of the form you use to file your federal taxes. A) D-400. B) 1040EZ. C) W-2. D) W-4. Show Answer Correct Answer: B) 1040EZ. 14. The sooner cash is received, the more ..... it is. A) Money. B) Wealth. C) Valuable. D) Financial. Show Answer Correct Answer: C) Valuable. 15. Diner Ltd. is a restaurant having 15 restaurants in Europe. They decide to take this number to 25 by opening 10 more restaurants in the major cities of Europe. What do you think will be the fixed capital here? A) High. B) Low. C) Can be high or low. D) None of above. Show Answer Correct Answer: A) High. 16. To determine the operating cycle for a department store, which one of these pairs of items is needed? A) Cash turnover and net sales. B) Days' sales in accounts receivable and average merchandise inventory. C) Accounts receivable turnover and inventory turnover. D) Asset turnover and return on sales. Show Answer Correct Answer: C) Accounts receivable turnover and inventory turnover. 17. Sum of money that is owned or due A) RBD. B) Debtors. C) Creditors. D) Debt. Show Answer Correct Answer: A) RBD. 18. The financial intermediary such as bank, insurance company, or a mutualfund obtains funds from savers in exchange for its securities. A) Transfer Through a Financial Intermediary. B) Direct transfer. C) Transfer through Investment Banks. D) None of above. Show Answer Correct Answer: A) Transfer Through a Financial Intermediary. 19. Is hence the handling of all financial matters, and this includes analyzing financial statements, evaluating investment opportunities which happens before one actually starts investing, and raising capital or funds from different sources. A) Finance. B) Evaluating Investments. C) Financial Management. D) Financial Institution. Show Answer Correct Answer: C) Financial Management. 20. Participants who receive more money than they spend. A) Surplus Units. B) Deficit Unit. C) Employees. D) Finance Manager. Show Answer Correct Answer: A) Surplus Units. ← 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