This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 62 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 62 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The capital raised by a business or corporation through the issueand subscription of shares and is being paid through dividends tostockholders. A) Capital. B) Capital allocation. C) Stock. D) Bonds. Show Answer Correct Answer: C) Stock. 2. Is anything that increases your ability to generate value. A) Capital. B) Allocation. C) Bonds. D) Stocks. Show Answer Correct Answer: A) Capital. 3. An empty jar can help me with this situation. A) Spending. B) Saving. C) Donating. D) Investing. Show Answer Correct Answer: B) Saving. 4. Your department at work places $ 10, 000 every year-end into an account earning 5%. The money is used when the corporate office fails to fully finance your profitable projects. The money has not been touched since the first deposit was made exactly five years ago. If the most recent deposit was made today, how much money is currently in the account? A) $ 68, 019.13. B) $ 60, 000.00. C) $ 68, 119.13. D) $ 68, 219.13. Show Answer Correct Answer: A) $ 68, 019.13. 5. Twin objectives of financial planning are A) Availability of funds and not to raise funds unnecessarily. B) To ensure availability of funds whenever required and to see that the firm does not raise resources unnecessarily. C) Estimating the fund required and specifying the sources. D) Estimating the time when funds are required. Show Answer Correct Answer: B) To ensure availability of funds whenever required and to see that the firm does not raise resources unnecessarily. 6. It pertains to the firm's ability to pay any immediate and incoming cash disbursements A) Liquidity. B) Asset Utilization. C) Debt-Utilization. D) Profitability. Show Answer Correct Answer: A) Liquidity. 7. What is influenced by the financing decision? A) Market price of shares. B) Cost of capital. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 8. When risk increase, the return will A) Increase. B) Decrease. C) No change. D) None. Show Answer Correct Answer: A) Increase. 9. What does a declining net profit margin over consecutive periods suggest about an SME's financial performance? A) Improved efficiency. B) Increasing profitability. C) Declining profitability. D) Lower financial risk. Show Answer Correct Answer: C) Declining profitability. 10. What has the same meaning as positive cash flow? A) Surplus. B) Deficit. Show Answer Correct Answer: A) Surplus. 11. There are 7 principles of financial management, some of which are as follows: A) Accountability, consistency, viability, transparency, accounting standards. B) Consitency, productivity, integrity, open minded. C) Stewardship, viability, continous learning, consistency. D) Productivity, integrity, collectivity, activity. Show Answer Correct Answer: A) Accountability, consistency, viability, transparency, accounting standards. 12. What type of assets include cash and those items that can be readily converted into cash? A) Long-term. B) Current. C) Expensed. D) Depreciated. Show Answer Correct Answer: B) Current. 13. Which of the following is not an advantage of issuing bonds? A) Management retains control. B) Interest paid is tax deductable. C) Bonds are only a temporay source of finance. D) None of the above. Show Answer Correct Answer: D) None of the above. 14. What document gives the right to make healthcare decisions, on someone else's behalf A) Medical Directive. B) Power of Attorney. C) Will. D) Living Trust. E) Probate. Show Answer Correct Answer: A) Medical Directive. 15. Ke = D/MP x 100, is used for A) Reserve. B) Calculating capital structure. C) Depreciation. D) Calculating Cost of Equity Share Capital. Show Answer Correct Answer: D) Calculating Cost of Equity Share Capital. 16. Five years ago, sona Limited issued 12 % irredeemable debentures at Rs. 103, at Rs. 3 premium to their par value of Rs. 100. The current market price of these debentures is Rs. 94. If the company pays corporate tax at a rate of 35 %, calculate its current cost of debenture capital? A) 7.57 %. B) 8.30 %. C) 12 %. D) None of these. Show Answer Correct Answer: B) 8.30 %. 17. Under Private Placement, shares are never offered to ( A) (a) Institutes. B) (b) Brokers. C) C) General Public. D) (d) None of the above. Show Answer Correct Answer: C) C) General Public. 18. In a way that doesn't change A) Consistency. B) Proper way. C) Changes. D) None of these. Show Answer Correct Answer: A) Consistency. 19. I InsuranceII Emergency FundIII Savings and InvestmentsIV Debt ManagementBased on the above, which should be included into financial plan? A) II, III and IV. B) I, II and III. C) II and III. D) I, II, III and IV. Show Answer Correct Answer: D) I, II, III and IV. 20. Capital budgeting decision has a direct impact on liquidity as well as profitability of a business A) True. B) False. Show Answer Correct Answer: B) False. ← 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