This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 46 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 46 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not included in the capital structure? A) Long term debt. B) Preferred stock,. C) Current assets. D) Retained earnings. Show Answer Correct Answer: C) Current assets. 2. Which Concept explains this statement the best?"How much money do the owners' receive based on the net profit of the company." A) Return on Owners Equity. B) Net profit margin. C) Return on total capital. D) None of above. Show Answer Correct Answer: A) Return on Owners Equity. 3. Rate of return on capital is exceptionally high in A) Under capitalisation. B) Over capitalisation. C) Working capital. D) Fixed capital. Show Answer Correct Answer: A) Under capitalisation. 4. The followings are the statements that best described for cash budget, except A) The cash forecast of the firm by planning inflows and outflows. B) Depreciation is excluded from the statement. C) Used to estimate short term cash requirements. D) Positive cashflow indicate the firm has surplus cash. Show Answer Correct Answer: D) Positive cashflow indicate the firm has surplus cash. 5. Q8) In the organization structure of the finance department, who typically reports to the Chief Financial Officer (CFO)? A) Sales managers. B) Marketing managers. C) Treasury managers. D) Operations managers. Show Answer Correct Answer: C) Treasury managers. 6. Increase in accounts receivable A) Operating Activities. B) Investing Activites. C) Financing Activities. D) None of above. Show Answer Correct Answer: A) Operating Activities. 7. If you miss you a class what happens A) You fail the year. B) You get a zero. C) You die. D) Professor Dinter will find you. E) Your get disowned by your parents. Show Answer Correct Answer: D) Professor Dinter will find you. 8. Host-the one who pays to utilize/consume the products/services. A) True. B) False. Show Answer Correct Answer: B) False. 9. Finance function comprises A) Safe custody of funds only. B) Expenditure of funds only. C) Procurement of finance only. D) Procurement & effective use of funds. Show Answer Correct Answer: D) Procurement & effective use of funds. 10. What is the main function of the money market? A) Dealing with short-term securities. B) Dealing with long-term securities. C) Facilitating the flow of funds among investors. D) Channeling savings into loans or investments. Show Answer Correct Answer: B) Dealing with long-term securities. 11. Individuals or companies that make a profit investing in startup companies A) Entrepreneurs. B) Venture Capitalist. C) Bill Gates. D) Silent Partner. Show Answer Correct Answer: B) Venture Capitalist. 12. What is the primary goal of financial managers? A) Minimizing debt. B) Maximizing profits. C) Maintaining liquidity. D) Increasing cash flow. Show Answer Correct Answer: B) Maximizing profits. 13. A government has adopted a contractionary fiscal policy. How would this typically affect businesses? A) Higher interest rates and higher inflation. B) Lower taxes and higher government subsidies. C) Higher taxes and lower government subsidies. D) Lower inflation and lower interest rates. Show Answer Correct Answer: C) Higher taxes and lower government subsidies. 14. All of the following are primary sources of income except? A) Employment paycheck. B) Tips. C) Interest. D) Loans. Show Answer Correct Answer: D) Loans. 15. If existing shareholders want to exercise complete control them they should prefer debt. A) True. B) False. Show Answer Correct Answer: A) True. 16. Federal agency debt A) Short term debt. B) Long term debt. Show Answer Correct Answer: B) Long term debt. 17. Dividend is distributed through A) Profits. B) Asset. C) Capital. D) Debt. Show Answer Correct Answer: A) Profits. 18. It is the study of how the players in a financial system acquire, spend, manage, and make other sound financial decisions concerning money and other financial resources. A) Finance. B) Money. C) Instrument. D) Business. Show Answer Correct Answer: A) Finance. 19. If taxes are ignored, MM approach is identical to A) NI Approach. B) Traditional Approach. C) NOI Approach. D) Non of the above. Show Answer Correct Answer: A) NI Approach. 20. A bank account where you can store money you don't need right away but keep it easily available and safe. You usually earn interest on this type of account. A) Checking Account. B) FICO score. C) Credit. D) Savings account. Show Answer Correct Answer: D) Savings account. ← 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