This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Net working capital is equal to A) Total assets minus total liabilities. B) Current assets minus total liabilities. C) Total operating capital minus net income. D) Current assets minus current liabilities. Show Answer Correct Answer: D) Current assets minus current liabilities. 2. Which of these would require the highest credit A) Approval for a credit card. B) Paying your internet bill on credit. C) Getting a mortgage. D) Dining out on credit. E) Going to the movies on credit. Show Answer Correct Answer: C) Getting a mortgage. 3. What is the process of budgeting? A) Forecasting the future. B) Allocating financial resources. C) Analyzing financial data. D) Creating financial reports. Show Answer Correct Answer: B) Allocating financial resources. 4. Traditional Approach is a(n) ..... approach in between both NI and NOI approach A) Integrating. B) Intermediate. C) Improved. D) Improvised. Show Answer Correct Answer: B) Intermediate. 5. Which of following does not a type of direct foreign investment? A) Franchising. B) International trade. C) Joint ventures. D) Acquisition of existing operators. Show Answer Correct Answer: B) International trade. 6. The ..... form shows how much money you made and how much you paid in taxes from the previous year. A) D-400. B) W-2. C) W-4. D) None of above. Show Answer Correct Answer: B) W-2. 7. Higher Inventory to be maintained when more working capital is required. A) True. B) False. Show Answer Correct Answer: A) True. 8. Asyraf have fixed expenses RM 1000 and variable expenses RM 300, so total there are RM 1300 total cash inflows A) True. B) False. Show Answer Correct Answer: B) False. 9. Sales, expenses, and profits or losses for a specific period are reported in a company's income statement. A) True. B) False. Show Answer Correct Answer: A) True. 10. The data collected should be: A) Old. B) Unreliable. C) Accurate. D) None. Show Answer Correct Answer: C) Accurate. 11. If existing share holders can share the control then they may go for debt. A) True. B) False. Show Answer Correct Answer: B) False. 12. What is the formula for Merchandise Inventory Turnover Ratio? A) Average Merchandise Inventory/Cost of Goods Sold. B) Cost of Goods Sold/Merchandise Inventory. C) Merchandise Inventory/Cost of Goods Sold. D) Cost of Goods Sold/Average Merchandise Inventory. Show Answer Correct Answer: D) Cost of Goods Sold/Average Merchandise Inventory. 13. Net working capital refers to excess of current liabilities over current assets. A) True. B) False. Show Answer Correct Answer: B) False. 14. Identification of investment proposals is the first step in capital budgeting process A) True. B) False. Show Answer Correct Answer: A) True. 15. For potential claims of damage or harm that result from a product. Coverage can be tailored to specific types of products, such as toys or machinery. A) Business interruption insurance. B) Vehicle insurance. C) Product liability insurance. D) Home-based businesses. Show Answer Correct Answer: C) Product liability insurance. 16. What is the primary goal of financial management? A) Maximizing sales. B) Maximizing shareholder wealth. C) Minimizing expenses. D) Increasing market share. Show Answer Correct Answer: B) Maximizing shareholder wealth. 17. The formula for compound value is: A) FV = PV (1+i). B) FV = PV/(1+i). C) FV = PV (1+i)n. D) FVn= = (1+i)/PV. Show Answer Correct Answer: C) FV = PV (1+i)n. 18. Take savings in the form of annualpremiums; invest these funds in stocks, bonds, real estate, andmortgages, and make payments to the beneficiaries of the insuredparties. A) Mutual funds. B) Life insurance company. C) Pension funds. D) Credit unions. Show Answer Correct Answer: B) Life insurance company. 19. Payment of cash dividends A) Investing Activities. B) Operating Activities. C) Financing Activities. D) None of above. Show Answer Correct Answer: C) Financing Activities. 20. The facts that a proprietorship, as a business, pays no corporate income tax, and that it is easily and inexpensively formed, are two key advantages to that form of business. A) True. B) False. Show Answer Correct Answer: A) True. ← PreviousNext →Related QuizzesManagement QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8Financial Management Quiz 9Financial Management Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books