This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Operating Expenses include all of the following except..... A) Advertising cost. B) Administration cost. C) R&D cost. D) Delivery dari Raw Materials. Show Answer Correct Answer: C) R&D cost. 2. Which is NOT a benefit of Goal Setting? A) Provides clear picture of where you're headed. B) Helps you determine what you need to do to get there. C) Keeps you focused on what you need to learn. D) You are always distracted and cannot focus on it. E) Provides a way to measure your progress. Show Answer Correct Answer: D) You are always distracted and cannot focus on it. 3. Under this facility, the bank allows the borrower to withdraw cash against certain security. A) Overdraft. B) Cash credit. C) Bills of exchange. D) None of above. Show Answer Correct Answer: B) Cash credit. 4. Transferring debt from one credit card to another. A) Late-payment fee. B) Introductory rate. C) Balance transfers. D) Credit Limit. Show Answer Correct Answer: C) Balance transfers. 5. What does the "R" mean in SMART goals? A) Report. B) Retain. C) Risk-Management. D) Results-Oriented. E) Risk. Show Answer Correct Answer: D) Results-Oriented. 6. An increase in the debt ratio will generally have no effect on which of these items? A) Business risk. B) Total risk. C) Financial risk. D) Market risk. Show Answer Correct Answer: A) Business risk. 7. Banking regulations are essentially the same in all developed nations. A) True. B) False. Show Answer Correct Answer: B) False. 8. Capital markets are composed of ..... and ..... markets. A) Primary, secondary. B) Commodity, stock. C) Bonds, commodity. D) Primary, stock. Show Answer Correct Answer: A) Primary, secondary. 9. Funds are financial resources in the form of: A) Corporate capital. B) Business funds. C) Cash Equivalents. D) All of these. Show Answer Correct Answer: D) All of these. 10. Present value interest factor (PVIF) are usually less than 1.0 A) True. B) False. Show Answer Correct Answer: A) True. 11. Contains the account holder's account number and allows money (cash or check) to be deposited into the correct account. A) Debit card. B) Deposit Slip. C) Check Register. D) Check. Show Answer Correct Answer: B) Deposit Slip. 12. Modigliani-Miller Model supports the ..... A) Net Income Approach. B) Net Operating Income Approach. C) Traditional Approach. D) Modern Approach. Show Answer Correct Answer: B) Net Operating Income Approach. 13. Time value of money explains that: A) Value of rupee received today is worth more than it is in the future. B) Value of rupee received today is worth less than it is in the future. C) Value of rupee received today and at some other time in future is equal. D) None of them. Show Answer Correct Answer: A) Value of rupee received today is worth more than it is in the future. 14. Financial Planning Links A) Investment and Dividend decision. B) Dividend and financing Decisions. C) Investment and Financing Decisions. D) None. Show Answer Correct Answer: C) Investment and Financing Decisions. 15. The short-term liabilities that a business owes to creditors A) Assets. B) Accounts payable. C) Owner's equity. D) Liabilities. Show Answer Correct Answer: B) Accounts payable. 16. Among the following individuals, who sets the SMART goals? A) Puan Hadirah intends to buy a laptop which costs RM3, 000 as a birthday gift for her son. Therefore, she plans to save RM300 a month for ten months. B) Mr Hazry is a teacher with an income of RM3, 000 and plans to get married in two years' time. The wedding expenses are estimated to be RM30, 000. Therefore, he wants to save RM1, 000 a month for a period of two years. Besides that, he also plans to get a loan for the wedding expenses. C) Miss Hazwanyza wants to buy a house worth RM200, 000 if she has sufficient amount of money. D) None of above. Show Answer Correct Answer: A) Puan Hadirah intends to buy a laptop which costs RM3, 000 as a birthday gift for her son. Therefore, she plans to save RM300 a month for ten months. 17. You buy 6 pairs of socks for $ 10.98, what is the unit price? A) $ 1.83. B) $ 1.85. C) $ 1.90. D) $ 1.38. Show Answer Correct Answer: A) $ 1.83. 18. What is the purpose of a FICA tax? A) It provides health insurance for people who are retired or disabled. B) It helps the state government finance education projects. C) It helps local councils finance development projects. D) None of above. Show Answer Correct Answer: A) It provides health insurance for people who are retired or disabled. 19. Which one of the following statements concerning net working capital is correct? A) The degree in the cash balance is also decreases net working capital. B) Networking capital increases when inventory is bought for cash. C) Networking capital must be positive. D) All the above. Show Answer Correct Answer: A) The degree in the cash balance is also decreases net working capital. 20. Compounding is the process of calculating the: A) Present value of future cash flows. B) Future value of present cash flows. C) Present value of preset cash flows. D) Future value of future cash flows. Show Answer Correct Answer: B) Future value of present cash flows. ← PreviousNext →Related QuizzesManagement QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 7Financial Management Quiz 8Financial Management Quiz 9Financial Management Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books