This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 43 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 43 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. This refers to the relationship between equity capital, preference share capital and debt capital. A) Capital structure. B) Capital. C) Sources of financing. D) None of the above. Show Answer Correct Answer: A) Capital structure. 2. Payment of monthly interest expense A) Operating Activities. B) Financing Activities. C) Investing Activities. D) None of above. Show Answer Correct Answer: A) Operating Activities. 3. True or False, The following statement is a SMART goal: "I want to make all As." A) True. B) False. Show Answer Correct Answer: B) False. 4. Cash discount term 3 / 15, net 40 means ..... A) 15% Discount if payment in 3 days, otherwise full payment in 40 days. B) 40% Discount if payment in 3 days, otherwise full payment in 15 days. C) 3% Discount if payment in 15 days, otherwise full payment in 40 days. D) None. Show Answer Correct Answer: C) 3% Discount if payment in 15 days, otherwise full payment in 40 days. 5. The following shows Steven's expenses in a month. Food RM760Utility bills RM130Petrol and tolls RM175Insurance premium RM70Car Installment RM650House rent RM500Hobby needs RM50Calculate the total fixed expenses and total variable expenses of Steven. A) Fixed expenses RM1220Variable expenses RM1115. B) Fixed expenses RM1200Variable expenses RM1135. C) Fixed expenses RM 1150 Variable expenses RM 1065. D) Fixed expenses RM1270Variable expenses RM1065. Show Answer Correct Answer: A) Fixed expenses RM1220Variable expenses RM1115. 6. Capital structure is a part of the liability side of a balance sheet. A) True. B) False. Show Answer Correct Answer: A) True. 7. External sources of funds are A) Funds from long term loans. B) Sale of fixed assets. C) Both (A) and (B). D) None of the above. Show Answer Correct Answer: A) Funds from long term loans. 8. What is statement that provide measurement of performance at some period time? Usually, provide amount of firm revenue and firm expense. A) Income Statement. B) Cash Flow. C) Balance Sheet. D) Risk Management Report. Show Answer Correct Answer: A) Income Statement. 9. Return on investment is computed as? A) Total Investment X EBIT. B) EBIT X EBT. C) EBIT / Total Investment. D) EBT / Total Investment. Show Answer Correct Answer: C) EBIT / Total Investment. 10. Joint venture is A) Not jointly owned by. B) It is licencing. C) Acquired by firms. D) Jointly owned by two or more. Show Answer Correct Answer: D) Jointly owned by two or more. 11. Financial Managers are often task to trade the equity securities of the firm in the financial market. What particular activity is this? A) Forecasting & Planning. B) Making Crucial Investment & Financing Decisions. C) Coordinating & Controlling. D) Trading in Financial Markets. Show Answer Correct Answer: D) Trading in Financial Markets. 12. Palo Alto Industries has a debt-to-equity ratio of 1.6 compared with the industry average of 1.4. This means that the company A) Will not experience any difficulty with its creditors. B) Has less liquidity than other firms in the industry. C) Will be viewed as having high creditworthiness. D) Has greater than average financial risk when compared to other firms in its industry. Show Answer Correct Answer: D) Has greater than average financial risk when compared to other firms in its industry. 13. What does this statement best align with?"Business look at its activities afresh annually. Historical results are not taken into account." A) Zero-base budgeting. B) Traditional budgeting. Show Answer Correct Answer: A) Zero-base budgeting. 14. Jasa Dayya Bhd had net credit sales of RM3, 150, 000 in 2019. It began the year with an accounts receivable balance of RM78, 200 and ended the year with a balance of RM78, 700. The accounts receivable turnover is: A) 40.15 times. B) 40.28 times. C) 40.03 times. D) 9.09 times. Show Answer Correct Answer: A) 40.15 times. 15. Time value of money indicates that A) A unit of money obtained today is worth more than a unit of money obtained in future. B) B. A unit of money obtained today is worthless them a unit of money obtained in future. C) C. There is no difference in the value of money obtained today and tomorrow. D) D. None of these. Show Answer Correct Answer: A) A unit of money obtained today is worth more than a unit of money obtained in future. 16. What is the concept of Time Value of Money primarily concerned with? A) Measuring inflation. B) Analyzing financial statements. C) Determining interest rates. D) Comparing the value of money at different points in time. Show Answer Correct Answer: D) Comparing the value of money at different points in time. 17. Crucial decision made by financial manager it's concerned in borrowing and funds allocation for investment is? A) Marketing Decision. B) Investment Decision. C) Purchase Decision. D) Financing Decision. Show Answer Correct Answer: D) Financing Decision. 18. ..... refers to management of flow of funds in a firm. A) Cash management. B) Bank management. C) Financial management. D) Money management. Show Answer Correct Answer: C) Financial management. 19. The length of time for which an employee's wages are calculated. A) Year-To-Date. B) Pay Period. C) Work Period. D) Salary. Show Answer Correct Answer: B) Pay Period. 20. Financial management is concerned with managerial activities relating to A) Planning. B) Procurement and administration of funds. C) Optimum utilisation of funds. D) All of the above. Show Answer Correct Answer: D) All of the above. ← 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