This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 65 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 65 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A farmer wants to build a permanent building as a storage shed for its half an acre farm. What type of loan should the farmer apply for? A) Short-term loan. B) Medium-term loan. C) Long-term loan. D) None of above. Show Answer Correct Answer: B) Medium-term loan. 2. To identify the uses of funds in a firm over a time is by A) Increasing in assets. B) Increasing in liabilities. C) Decreasing in assets. D) Selling the stocks. Show Answer Correct Answer: A) Increasing in assets. 3. The following are some of the Flows of Business Transactions, EXCEPT: A) Preparing budget. B) Transaction Occurrence. C) Document Prepared. D) Posting in Ledger. Show Answer Correct Answer: A) Preparing budget. 4. In order to find out cost of equity capital under CAPM, which of the following is not required: A) Beta Factor. B) Market Rate of Return. C) Market Price of Equity Share. D) Risk-free Rate of Interest. Show Answer Correct Answer: C) Market Price of Equity Share. 5. Costs that changedisproportionatelywith changes inoutput levels. A) Fixed Costs. B) Variable Costs. C) Semi Variable Costs. D) None of above. Show Answer Correct Answer: C) Semi Variable Costs. 6. I like to help others, so I am happy to do this. A) Spending. B) Earning. C) Saving. D) Donating. Show Answer Correct Answer: D) Donating. 7. What is the purpose behind taxes? A) Pay for services in your community, state, and country. B) To help others when they are in need, due to circumstances. C) To provide safety (police, firefighters, military). D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Optimal capital structure consists of both the mix of debt and equity A) True. B) False. Show Answer Correct Answer: A) True. 9. A wealthy woman just died and left her pet cats the following estate:$ 50, 000 per year for the next 15 years with the first cash flow today. At a discount rate of 3.2%, what is the feline estate worth in today's dollars? A) $ 607, 180.14. B) $ 601, 180.14. C) $ 608, 180.14. D) $ 774, 000.00. Show Answer Correct Answer: A) $ 607, 180.14. 10. Which of the following factors affecting the cost of capital can be controlled by the firm A) Tax rates. B) Dividend Policy. C) Level of Interest Rates. D) All of the Above. Show Answer Correct Answer: B) Dividend Policy. 11. Which of the following tasks would typically be carried out by a member of the financial management team? A) Evaluating proposed expansion plans. B) Review of overtime spending. C) Depreciation of non-current assets. D) Apportioning overheads to cost units. Show Answer Correct Answer: A) Evaluating proposed expansion plans. 12. The following are all features of equity shares except one: A) Voting rights. B) Residual claims on assets. C) Right to control. D) Leads to speculations. Show Answer Correct Answer: D) Leads to speculations. 13. The value of the business on a specific date is referred to as ..... A) Asset. B) Liability. C) Owner's equity. D) Debt. Show Answer Correct Answer: C) Owner's equity. 14. Real or a virtual document representing a legal agreement involving some sort-of monetary value A) Financial Debt. B) Financial Asset. C) Financial Institution. D) Financial Instruments. Show Answer Correct Answer: D) Financial Instruments. 15. Which term refers to the total amount of money earned by a business before deducting expenses? A) Expenditure. B) Revenue. C) Profit (net). D) Turnover. Show Answer Correct Answer: B) Revenue. 16. A firm's investment decision is also called the: A) Financing decision. B) Capital budgeting decision. C) Liquidity decision. D) None of these options. Show Answer Correct Answer: B) Capital budgeting decision. 17. The capital redemption reserve is created for the following reasons A) To maintain the capital intact. B) To safeguard the interest company's creditors. C) Both of the above. D) None of the above. Show Answer Correct Answer: C) Both of the above. 18. Finance can be defined as managing fund for future benefits of the business. A) True. B) False. Show Answer Correct Answer: A) True. 19. The cost of credit expressed as a yearly interest rate. A) Variable APR. B) Penalty APR. C) Fixed APR. D) Annual Percentage Rate (APR). Show Answer Correct Answer: D) Annual Percentage Rate (APR). 20. Assest we can see and touch A) Intangible Assest. B) Tangible Assets. C) Liquid Assets. D) Fixed Assest. Show Answer Correct Answer: B) Tangible Assets. ← 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