This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 63 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 63 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In case of recurring deposit the fixed amount is deposited in a bank every month for a fixed period of time. A) Fixed deposit. B) Current a/c deposit. C) Savings bank a/c. D) Recurring deposit a/c. Show Answer Correct Answer: D) Recurring deposit a/c. 2. How would you define financial management? A) The process of acquiring needed funds. B) The management of money. C) The balancing of risks and profitability. D) The planning and controlling of financial resources. Show Answer Correct Answer: B) The management of money. 3. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960 How much is the total current assets? A) 49, 850. B) 50, 890. C) 59, 850. D) Cannot be determined. Show Answer Correct Answer: C) 59, 850. 4. .... permanent capital and cannot be withdrawn during the lifetime of the company? A) Equity financing. B) Debt financing. C) Debt equity mix. D) None of above. Show Answer Correct Answer: A) Equity financing. 5. Why are Capital Budgeting Decisions critical? A) Risk involved. B) Decisions are irreversible. C) Large Amounts of funds involved. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. A secure box in a bank's vault used for the safe storage of a customer's valuables such as jewelry, birth certificates and other important documents. A) Risk box. B) Secret box. C) Trust box. D) Safe-deposit box. Show Answer Correct Answer: D) Safe-deposit box. 7. A common financial service used by many consumers. They can help to manage money and make paying bills more conveniently. A) Debit Card. B) Savings Account. C) Checking Account. D) PIN. Show Answer Correct Answer: C) Checking Account. 8. At the end of the period covered by a budget, the business will prepare new financial statements. A) True. B) False. Show Answer Correct Answer: A) True. 9. Evelyn, Marryssa, and Camden are discussing the concept of time value of money in financial management. Camden believes that the value of money remains constant over time. Evelyn thinks that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. Marryssa, on the other hand, believes that the concept of time value of money is not applicable in financial management. According to the principles of financial management, who is correct? A) Camden:The value of money remains constant over time. B) Evelyn:Money available at the present time is worth more than the same amount in the future due to its potential earning capacity. C) Marryssa:The concept of time value of money is not applicable in financial management. D) None of them are correct. Show Answer Correct Answer: B) Evelyn:Money available at the present time is worth more than the same amount in the future due to its potential earning capacity. 10. The type of financing where the firm that specializes in buying other firm's account receivable refers to? A) Promissory note. B) Commercial paper. C) Factoring. D) Mortgage. Show Answer Correct Answer: C) Factoring. 11. Only revenue nature cash flow is shown in cash budget A) True. B) False. C) Other. D) None of above. Show Answer Correct Answer: B) False. 12. Analysis simply means ..... data. A) Complexing data. B) Simplification. C) Hiding data. D) None. Show Answer Correct Answer: B) Simplification. 13. What is the difference between current and non current assets? A) There is no difference. B) Current assets are the same as current liabilities and non current are not. C) Current assets tend to be easily converted to cash whereas non current are not. D) A company will gain more profit if they use non current only. Show Answer Correct Answer: C) Current assets tend to be easily converted to cash whereas non current are not. 14. Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time A) To determine the amount and/or percentage increase or decrease that has taken place. B) That has been arranged from the highest number to the lowest number. C) That has been arranged from the lowest number to the highest number. D) To determine which items are in error. Show Answer Correct Answer: A) To determine the amount and/or percentage increase or decrease that has taken place. 15. Short term financial goals can be achieved in less than a year and does not involve in a large amount of money. A) False. B) True. Show Answer Correct Answer: B) True. 16. Which of the following is true about the 'inflation' figure that is included in the money cost of capital? A) It is historic and specific to the business. B) It is historic general inflation suffered by the investors. C) It is expected and specific to the business. D) It is expected general inflation suffered by the investors. Show Answer Correct Answer: D) It is expected general inflation suffered by the investors. 17. Present value of Rs. 1 received after 2 years with 10% discounting rate. A) 0.268. B) 0.628. C) 0.826. D) 0.286. Show Answer Correct Answer: C) 0.826. 18. Working Capital Management refers to Receivables Management A) True. B) False. C) May be. D) None. Show Answer Correct Answer: B) False. 19. The agency problem arises due to the separation of ownership and control in a corporation. A) True. B) False. Show Answer Correct Answer: A) True. 20. What Site Can you Get a Free Credit Report A) CreditKarma.com. B) CreditReportAnnual.com. C) CreditReport.gov. D) Annualreport.com. E) Annualcreditreport.com. Show Answer Correct Answer: E) Annualcreditreport.com. ← 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