This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 51 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 51 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does the A in SMART stand for? A) Attainable. B) Accountable. C) Action-Packed. D) Articulate. Show Answer Correct Answer: A) Attainable. 2. When you make a mistake you should A) Attempt to hide the mistake. B) Blame others. C) Accept fault and seek to remediate the error. D) Ignore it and move on. E) Apologize but continue acting the same way. Show Answer Correct Answer: C) Accept fault and seek to remediate the error. 3. John wants to buy a $ 5, 000 car. He plans to buy it in 3 years. How much should he save each month to pay for the car? A) $ 1, 666.67. B) $ 138.89. C) $ 208.33. D) None of above. Show Answer Correct Answer: B) $ 138.89. 4. What do you call the max you can borrow? A) Credit limit. B) Lending Limit. C) Service Limit. D) Equity Limit. E) Quality Limit. Show Answer Correct Answer: D) Equity Limit. 5. Features of international business that a organization may be exposed to A) Exchange rates. B) Political risks. C) Foreign economic condition. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. These are given to managers based on their effectiveness in achieving company goals A) Economic Value Added. B) Performance Shares. C) Preference Shares. D) Ordinary Shares. Show Answer Correct Answer: B) Performance Shares. 7. Increase in accounts payable A) Operating Activities. B) Investing Activities. C) Financing Activities. D) None of above. Show Answer Correct Answer: A) Operating Activities. 8. What is not included in the definition of Income Tax Subject below is: A) Pet. B) Private Person. C) A lot. D) BUT (Permanent Establishment). Show Answer Correct Answer: A) Pet. 9. The sale of "new" securities, where the financial asset is being traded for the very first time, is said to take place in the ..... market. A) Primary. B) Money. C) Secondary. D) Capital. Show Answer Correct Answer: A) Primary. 10. What is a personal line of credit A) Money in your bank account. B) Money available on a need basis. C) Money that you can't access. D) A blank credit card. E) A consumer loan. Show Answer Correct Answer: B) Money available on a need basis. 11. What institution has authority to increase/reduce interest rate? A) Commercial banks. B) Central bank. C) Savings and loan associations. D) Credit unions. Show Answer Correct Answer: B) Central bank. 12. Financial leverage refers to the portion of debt in the overall capital. A) True. B) False. Show Answer Correct Answer: A) True. 13. Use of fixed interest bearing source of funds to enhance the return of equity shareholders is called ..... A) Trading on profit. B) Trading on equity. C) Trading on asset. D) Trading on liability. Show Answer Correct Answer: B) Trading on equity. 14. Ke stands for A) Cost of evaluation. B) Cost of estimation. C) Cost of equity capital. D) Cost of preference capital. E) Cost of floatation of equity shares. Show Answer Correct Answer: C) Cost of equity capital. 15. Financial Management is study-(I) Of the process of procuring and judicious use of financial resources(II) Undertaken to maximize the value of the firm/owners.Select the correct answer from the options given below. A) (I) only. B) (II) only. C) Both (I) and (II). D) Neither (I) nor (II). Show Answer Correct Answer: C) Both (I) and (II). 16. When interest rates are high, a company with a high capital gearing ratio may experience: A) Increased profitability. B) Difficulty in meeting interest payments. C) Increased risk. D) Decreased profitability. Show Answer Correct Answer: B) Difficulty in meeting interest payments. 17. When are the student labs held? A) Monday. B) Tuesday. C) Wednesday. D) Thursday. E) Friday. Show Answer Correct Answer: D) Thursday. 18. Cash at bank is an example of A) Current asset. B) Current liability. C) More of current asset less of current liability. D) Less of current asset more of current liability. Show Answer Correct Answer: A) Current asset. 19. Financial management function that managing the funds earned from active spending is called ..... A) Planning function of funds. B) Obtaining of funds. C) Allocation of funds. D) Earned of funds. Show Answer Correct Answer: C) Allocation of funds. 20. Which business financial planning concept is correct? A) Manage budgeting for the boss's interests. B) Manage budgeting for each business needs item. C) Manage debt loan budgeting. D) Manage the flow of receivables collection wisely. E) Manage bank loans for personal needs. Show Answer Correct Answer: B) Manage budgeting for each business needs item. ← 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