This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 64 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 64 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Financing decisions involve A) Fixed assets decisions. B) Capital Budgeting decisions. C) Shareholders fund decisions. D) Debt Equity decisions. Show Answer Correct Answer: D) Debt Equity decisions. 2. Treasury Notes A) Short term debt. B) Long term debt. Show Answer Correct Answer: B) Long term debt. 3. Which type of bank is NON PROFIT and run by its members? A) Commercial banks. B) Credit Unions. Show Answer Correct Answer: B) Credit Unions. 4. Agency costs are costs incurred when: A) Managers do not attempt to maximize firm value. B) Shareholders incur costs to monitor the managers and influence their actions. C) Both of these options. D) None of these options. Show Answer Correct Answer: C) Both of these options. 5. There are checks in the checkbook, so there must be money in the checking account A) Fact. B) Fiction. Show Answer Correct Answer: B) Fiction. 6. All income that a business receives over a period of time is called profit. A) True. B) False. Show Answer Correct Answer: B) False. 7. The knowledge and skillset necessary to be an informed consumer and manage finances effectively A) Financial Literacy. B) Loan. C) Interest. D) Credit. Show Answer Correct Answer: A) Financial Literacy. 8. In the wider sense Capital structure mens- A) Owned Capital + Loan. B) Owned Capital + Long-term loan. C) Owned Capital + Short-term Loan. D) Owned Capital. Show Answer Correct Answer: A) Owned Capital + Loan. 9. Funding for international activities can come from three main sources, except A) Multiple funding. B) Equity financing. C) Debt financing. D) Intra-company financing. Show Answer Correct Answer: A) Multiple funding. 10. What does the "A" mean in SMART goals? A) Attraction. B) Attention. C) Active. D) Attainable. E) Active-Management. Show Answer Correct Answer: E) Active-Management. 11. Issuance of bonds to obtain cash A) Financing Activities. B) Operating Activities. C) Investing Activities. D) None of above. Show Answer Correct Answer: A) Financing Activities. 12. What is the purpose of your net worth? A) To flash off your money. B) To learn how rich your favorite celebrity is. C) To show how financially healthy you are. D) To learn about how money works. E) To learn how much in debt you are. Show Answer Correct Answer: C) To show how financially healthy you are. 13. How does a higher times interest earned ratio impact a company's risk of default on its debt obligations? A) Increases the risk of default. B) Reduces the risk of default. C) Indicates lower profitability. D) Implies higher financial leverage. Show Answer Correct Answer: B) Reduces the risk of default. 14. Free cash flow is the ..... A) Cash flow from assets. B) Remaining cash free to distribute to creditors and owners of the firm. C) Cash that a company generates to operate the company. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. What a company owns A) Assets. B) Owner's equity. C) Profits. D) Revenue. Show Answer Correct Answer: A) Assets. 16. The company uses this account when it reports sales of goods, generally under cost of goods sold in the income statement. A) Balance sheet. B) Assets. C) Current Liabilities. D) Inventory. Show Answer Correct Answer: D) Inventory. 17. Which of the following are correct advantages of the IRR approach to investment appraisal, and which are not?1. Clear decision rule2. Takes into account the time value of money3. Assumes funds are reinvested at the IRR4. Considers the whole project A) Correct, Correct, Incorrect, Incorrect. B) Incorrect, Correct, Correct, Correct. C) Incorrect, , Correct, Incorrect, Correct,. D) Correct, Incorrect, Correct, Correct. Show Answer Correct Answer: C) Incorrect, , Correct, Incorrect, Correct,. 18. Which of the following is NOT a bond rating agency? A) Equifax. B) Moody's. C) S&P. D) Fitch. Show Answer Correct Answer: A) Equifax. 19. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960 If total current liabilities amounted to 19, 900. What is the quick ratio? A) 3.00. B) 2.55. C) 3.01. D) 2.56. Show Answer Correct Answer: D) 2.56. 20. Shares issued to the promoters of a company A) Sweat equity share. B) No Par Share. C) Deferred share. D) Right share. Show Answer Correct Answer: C) Deferred share. ← 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