This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 58 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 58 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When you pay off the principal and all of the interest at one time at the maturity date of the loan, we call this type of loan a/an ..... A) Amortized loan. B) Interest-only loan. C) Discount loan. D) Compound loan. Show Answer Correct Answer: C) Discount loan. 2. There is no operating leverage if there is no ..... A) Profit. B) Sales. C) Fixed Cost. D) Variable Cost. Show Answer Correct Answer: C) Fixed Cost. 3. Information from PT Maju is known as follows:Cost of Goods Sold:$ 500Sales:$ 3, 000Depreciation:$ 700Interest:$ 200How much is PT Maju's Earning Before Taxes? A) $ 200. B) $ 3.000. C) $ 1.500. D) $ 1.600. Show Answer Correct Answer: D) $ 1.600. 4. What is a common financial ratio used to assess liquidity? A) Return on Investment (ROI). B) Current Ratio. C) Debt-to-Equity Ratio. D) Price-Earnings Ratio . Show Answer Correct Answer: B) Current Ratio. 5. If there is a negative cash flow, we should reduce A) Variable expenses. B) Active income. C) Passive income. D) Fixed expenses. Show Answer Correct Answer: D) Fixed expenses. 6. What is the difference between a shareholder and a debtholder? A) Shareholders are the owners of a company whereas debtholders own debt issued by a company. B) Shareholders are not different from debtholders as both hold stakes in a company. C) Shareholders provide money when starting a company whereas debtholders supply funds during its course of business. D) Shareholders have less rights than debtholders who have the actual control over a company. Show Answer Correct Answer: A) Shareholders are the owners of a company whereas debtholders own debt issued by a company. 7. The objective of wealth maximization takes into account A) Amount of returns expected. B) Timing of anticipated returns. C) Risk associated with uncertainty of returns. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. What financial reports are commonly prepared by financial managers? A) Sales reports and customer satisfaction surveys. B) Income statement and cash flow statement. C) Marketing plan and advertising budget. D) Report production planning and inventory. Show Answer Correct Answer: B) Income statement and cash flow statement. 9. Financial management is essential for businesses because it: A) Enables efficient allocation of resources and strategic decision-making. B) Enhances financial performance and profitability. C) Helps attract investors and secure external funding. D) Assists in managing financial risks and uncertainties. E) All of the above. Show Answer Correct Answer: E) All of the above. 10. Debt and equity differ in cost and risk. A) True. B) False. Show Answer Correct Answer: A) True. 11. Financial planning means ..... of financial activities. A) Determining. B) Pre-determining. C) Later-determining. D) Not determining. Show Answer Correct Answer: B) Pre-determining. 12. The financial activities which are performed regularly are known as: A) Non-recurring finance functions. B) Recurring finance functions. C) Both of these. D) None of these. Show Answer Correct Answer: B) Recurring finance functions. 13. The charge for borrowing money. A) Introductory rate. B) Annual Fee. C) Interest. D) Variable-rate APR. Show Answer Correct Answer: C) Interest. 14. The main services banks provide is ..... money in bank accounts. A) Storing. B) Spending. C) Sorting. D) Shaving. Show Answer Correct Answer: A) Storing. 15. What are the advantages of investing in gold? A) The value of gold tends to be stable. B) Gold does not require special care. C) Gold is easy to resell. D) Gold does not require financial planning. Show Answer Correct Answer: A) The value of gold tends to be stable. 16. Which of the above factors helps to determine the capital structure of a firm A) Government policies. B) Degree of control. C) Cost of capital. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Main objective is to keep down ..... in inventories A) Capital investment. B) Excessive carrying cost. C) Risk of liquidity. D) None of above. Show Answer Correct Answer: A) Capital investment. 18. Based on the tips presented, what is not included in how to manage debt? A) Set payment priorities. B) Create a budget for each need. C) Using credit cards excessively. D) Looking for cheaper financing alternatives. Show Answer Correct Answer: C) Using credit cards excessively. 19. Through them we can extract an analysis and in line with others, analyze the economic evolution. A) Monetary Politics. B) Profit maximization. C) Financial Planning. D) Economic indicators. Show Answer Correct Answer: D) Economic indicators. 20. Items you buy:tangible object that satisfies wants A) Service. B) Needs. C) Goods. D) Wants. Show Answer Correct Answer: C) Goods. ← 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