This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 61 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 61 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In discounting, the table value goes on increasing with the increase in the rate of Interest and number of year. A) True. B) False. Show Answer Correct Answer: B) False. 2. The payment terms 2/10, n/30 tell us that: A) A 10% discount will be awarded if the payment is made within 2 days of invoice date; otherwise, the full amount is payable within 30 days of invoice date. B) A 2% discount will be awarded if the payment is made within 10 months of invoice date; otherwise, the full amount is payable within 30 months of invoice date. C) A 0.5% discount will be awarded if the payment is made within 10 days of invoice date; otherwise, the full amount is payable within 30 days of invoice date. D) A 2% discount will be awarded if the payment is made within 10 days of invoice date; otherwise, the full amount is payable within 30 days of invoice date. Show Answer Correct Answer: D) A 2% discount will be awarded if the payment is made within 10 days of invoice date; otherwise, the full amount is payable within 30 days of invoice date. 3. Which of the following is an objective of financial planning? A) Ensuring enough funds are available at the right time. B) NOT TO RAISE UNNECESSARY FUNDS. C) BOTH. D) None of above. Show Answer Correct Answer: C) BOTH. 4. Cash turnover is an average time required to acquire inventory, sell it and collect money from it. A) True. B) False. Show Answer Correct Answer: B) False. 5. Q9) What is the role of a financial manager in managing risk? A) Avoiding all risks. B) Accepting all risks. C) Identifying and mitigating risks. D) Transferring all risks to shareholders. Show Answer Correct Answer: C) Identifying and mitigating risks. 6. What is an example of a ownership investment? A) Savings account. B) Stocks. C) Bonds. D) Money market account. E) None of the above. Show Answer Correct Answer: B) Stocks. 7. Which of the following is least likely to be considered a role of financial statement analysis? A) Determining whether to invest in the company's securities. B) Assessing the management skill of the company's executives. C) To make economic decisions. D) None of above. Show Answer Correct Answer: B) Assessing the management skill of the company's executives. 8. Sara wants to save up to buy a kindle for reading. A kindle costs about $ 104.00 If Sara earns $ 10 a week for watering her neighbors trees how many weeks does Sara have to work to earn enough money? A) 10 weeks. B) 11 weeks. C) 5 weeks. D) 20 weeks. E) 15 weeks. Show Answer Correct Answer: B) 11 weeks. 9. Money paid to the state and federal government so that the government can function is ..... A) Taxes. B) Salary. C) Debt. D) Income. Show Answer Correct Answer: A) Taxes. 10. The total amount taken from the employee's paycheck for medical benefits. A) FICA. B) Medicare. C) Medicaid. D) Medical. Show Answer Correct Answer: D) Medical. 11. The Appropriate objectives of enterprises is A) Maximization of sales. B) Maximization of owner's wealth. C) Maximization of profits. D) None of above. Show Answer Correct Answer: B) Maximization of owner's wealth. 12. Disadvantages of the NPV method include: A) Tells whether firm value is increased. B) Considers all cash flows. C) Requires estimate of cost of capital. D) Considers the time value of money. Show Answer Correct Answer: C) Requires estimate of cost of capital. 13. Which one of the following is NOT a retirement plan? A) 401k. B) IRA. C) Roth IRA. D) I-9. E) 403B. Show Answer Correct Answer: D) I-9. 14. It is a type of financial institution that specializes in offering savings accounts and originating home mortgages for consumers. A) Universal Bank. B) Commercial Bank. C) Rural Bank. D) Thrift Bank. Show Answer Correct Answer: D) Thrift Bank. 15. ..... capital should be preferred while arranging for a long-term finance? A) Preference share capital. B) Equity share capital. C) Debt or borrowed capital. D) Retained earning. Show Answer Correct Answer: B) Equity share capital. 16. The most liquid of all assets, cash, appears on the first line of the balance sheet. A) Cash and Equivalents. B) Accounts Receivable. C) Inventory. D) Intangible Assets. Show Answer Correct Answer: A) Cash and Equivalents. 17. SDL is a tax imposed on companies resident in the Republic of South Africa i.e. incorporated under the laws of, or which are effectively managed in, the Republic, and which derive income from within or outside the Republic. A) True. B) False. Show Answer Correct Answer: B) False. 18. Kumar company has sales of Rs. 25, 00, 000. Variable cost of Rs. 12, 50, 000 and fixed cost of Rs. 50, 000 and debt of Rs. 12, 50, 000 at 8% rate of interest. Calculate combined leverage. A) 1.31. B) 1.13. C) 1.40. D) 1.50. Show Answer Correct Answer: B) 1.13. 19. What do you mean by Financial Stability? A) It means time freedom. B) It means financial security. C) It means financial independence. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. ..... is the long term strategy for financing proposed capital expenditure A) Capital budgeting. B) Budget. C) Cash budget. D) None of the above. Show Answer Correct Answer: A) Capital budgeting. ← 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