This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 55 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 55 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does CEO mean? A) Central Executive Office. B) Committee of Essential Operations. C) Chief Executive Officer. D) Chief Education Officer. Show Answer Correct Answer: C) Chief Executive Officer. 2. Which of the following statements about Generally Accepted Accounting Principles (GAAP) is NOT true? A) GAAP is a set of rule-based accounting standards established by the Financial Accounting Standards Board (FASB). B) GAAP sets out the standards, conventions, and rules that accountants must follow when preparing audited financial statements. C) GAAP is complex, providing more than 150 "pronouncements" as to how to account for different types of transactions. D) All of the statements above are true. Show Answer Correct Answer: D) All of the statements above are true. 3. The bank issued card that deducts money directly from the checking account is A) Debit card. B) Credit card. C) Savings account. D) Money market. Show Answer Correct Answer: A) Debit card. 4. Earning Per Share equals to: A) Earning after tax / no. of debentures. B) Earning after tax / no. of Preference shares. C) Earning after tax / no. of Equity shares. D) None of the above. Show Answer Correct Answer: C) Earning after tax / no. of Equity shares. 5. What does VAT (Value Added Tax) represent in business transactions? A) A tax on employee salaries. B) A tax on imported goods. C) A tax on the value added at each stage of production. D) A tax on company profits. Show Answer Correct Answer: C) A tax on the value added at each stage of production. 6. Debt causes a dilution of control A) True. B) False. Show Answer Correct Answer: B) False. 7. Is an organization which underwrites securities for companies advises in various activities A) Merchant. B) Leasing. C) Mutual funds. D) None of above. Show Answer Correct Answer: A) Merchant. 8. If Maddy's gross pay is $ 500 this pay period and the Social Security tax is 6.2%, how much Social Security tax will be deducted from Maddy's paycheck? A) $ 31.00. B) $ 52.15. C) $ 6.50. D) None of above. Show Answer Correct Answer: A) $ 31.00. 9. One of the scopes of financial management, namely: A) Investation decision. B) Decision to save at the bank. C) Production decisions. D) Income decision. Show Answer Correct Answer: A) Investation decision. 10. Who might provide expert advice on tax planning and financial strategies to a business? A) Human Resources Manager. B) Financial Analyst. C) Operations Manager. D) Management Consultant. Show Answer Correct Answer: B) Financial Analyst. 11. A detailed plan for a business' financial needs A) Expenses. B) Budget. C) Inventory. D) Accounts. Show Answer Correct Answer: B) Budget. 12. Current Ratio is computed as: A) Total Current Assets. B) Product of Current Assets and Current Liabilities. C) Current Assets/ Current Liabilities. D) Quick Assets and Quick Liabilities. Show Answer Correct Answer: C) Current Assets/ Current Liabilities. 13. Four years ago, Robert's annual salary was $ 52, 500. Today, he earns $ 73, 800. What has been the average annual rate of growth of Robert's salary? A) 8.89%. B) 10.38%. C) 41.52%. D) $ 5, 325 per year. Show Answer Correct Answer: A) 8.89%. 14. Which of the following statements concerning net income is MOST correct? A) Net income represents cash available to pay dividends. B) Net income represents sales minus operating expenses at a specific point in time. C) Negative net income reduces a company's cash balance. D) Net income represents income that may be reinvested in the firm or distributed to its owners. Show Answer Correct Answer: D) Net income represents income that may be reinvested in the firm or distributed to its owners. 15. Head of finance department A) Finance manager. B) Line manager. C) Top level manager. D) None of these. Show Answer Correct Answer: A) Finance manager. 16. Insurance companies have a great deal of money to invest because A) There profit margins are so high. B) Because they are reluctant to cover insurable losses. C) Because they must hold large reserves to pay potential claims. D) Insurance do not actually have large sums to invest. Show Answer Correct Answer: C) Because they must hold large reserves to pay potential claims. 17. Which of the following is the second process in financial management A) Carrying out financial plan. B) Setting goals. C) Reviewing and revising the progress. D) Evaluating financial status. Show Answer Correct Answer: D) Evaluating financial status. 18. Your employer has agreed to place year-end deposits of $ 1, 000, $ 2, 000, and $ 3, 000 into your retirement account. The $ 1, 000 deposit will be one year from today, the $ 2, 000 deposit two years from today, and the $ 3, 000 deposit three years from today. If your account earns 5% per year, how much money will you have in the account at the end of year three when the last deposit is made? A) $ 5, 357.95. B) $ 6, 000. C) $ 6, 202.50. D) $ 6, 727.88. Show Answer Correct Answer: C) $ 6, 202.50. 19. ..... are documents that summarize the changes resulting from business transactions that occur during an accounting period. A) Income statements. B) Financial statements. C) Accounts payables. D) Current assets. Show Answer Correct Answer: B) Financial statements. 20. Anything that you spend money on. A) Income. B) Expense. C) Deposit. D) Withdrawal. Show Answer Correct Answer: B) Expense. ← 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