This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Dividend Decision is related to A) Right issue of share. B) Reinvestment requirement. C) Cash flow statement. D) None of the above. Show Answer Correct Answer: B) Reinvestment requirement. 2. Which of the following is NOT a common way businesses pay employees? A) Yearly. B) Monthly. C) Weekly. D) Bi-weekly. Show Answer Correct Answer: A) Yearly. 3. Which of the following best identifies the four main areas of finance? A) Corporate finance, investments, financial institutions and markets, international finance. B) Corporate finance, investments, capital structure, international finance. C) Exchange rate management, investments, financial institutions and markets, international finance. D) Corporate finance, capital budgeting, financial institutions and markets, regulation. Show Answer Correct Answer: A) Corporate finance, investments, financial institutions and markets, international finance. 4. Which one of the following is false regarding simulations? A) They can consider several variables changing simultaneously. B) They have a clear decision rule. C) They give a better understanding of risk. D) They describe a range and probability of possible outcomes. Show Answer Correct Answer: B) They have a clear decision rule. 5. June 2015:The net profit of a company is ₹ 2, 00, 000, preference dividend ₹ 25, 000, and taxes paid ₹ 15, 000. The number of equity shares is 1, 00, 000. The earnings per share (EPS) is- A) ₹ 1.5. B) ₹ 1.6. C) ₹ 2. D) ₹ 1.75. Show Answer Correct Answer: B) ₹ 1.6. 6. Long term financing is the money that will be used for longer than one year. A) True. B) False. Show Answer Correct Answer: A) True. 7. Average Sale Period can be computed by dividing A) 366 days/Accounts Receivable Turnover Ratio. B) 365 days/Inventory Turnover Ratio. C) 365 days/Accounts Receivable Turnover Ratio. D) 366 days/Inventory Turnover Ratio. Show Answer Correct Answer: B) 365 days/Inventory Turnover Ratio. 8. Which of the following is NOT the characteristics of agricultural finance? A) Valuation of the firm. B) A sub-system of the business system which has other subsystems. C) Involves risk-return trade-off decisions on investment. D) Financial affects the survival, growth and suitality of the firm. Show Answer Correct Answer: D) Financial affects the survival, growth and suitality of the firm. 9. Finance Functions are A) Planning for funds. B) Raising of funds. C) Allocation of resources. D) All the above. Show Answer Correct Answer: D) All the above. 10. The Bottom-up approach to setting goals is: A) Goal set by management. B) Goal set by financial manager. C) Goal set keeping in mind employees. D) All of above. Show Answer Correct Answer: C) Goal set keeping in mind employees. 11. Agency problem arises when managers deviate from the goal of maximization of shareholder wealth by placing their personal goals ahead of the goals of shareholders. A) True. B) False. Show Answer Correct Answer: A) True. 12. Setting up direct deposit can give you faster access to your money A) True. B) False. Show Answer Correct Answer: A) True. 13. ..... include banks, insurance companies, and lending institutions, among others. A) Financial management. B) Finance. C) Finance management. D) Financial institutions. Show Answer Correct Answer: D) Financial institutions. 14. Which of the following can be utilised for the redemption of preference shares of a company out of profit A) Share forfeited account. B) Dividend equalisation reserve. C) Capital redemption reserve account. D) Development rebate reserve account. Show Answer Correct Answer: B) Dividend equalisation reserve. 15. This is one of the functions of a Financial Manager which include making decisions on how to fund long term investment and working capital. A) Financing. B) Investing. C) Operating. D) Dividend policies. Show Answer Correct Answer: A) Financing. 16. This ratio is used to measure the liquidity of the firm's receivable. A) Current Ratio. B) Accounts Receivable Turnover Ratio. C) Quick Ratio. D) Inventory Turnover Ratio. Show Answer Correct Answer: B) Accounts Receivable Turnover Ratio. 17. Why is it important to save money? A) Saving for a goal or something special in the future. B) Because your parents say so. C) So you can spend it faster. D) Its not a good idea to save money. Show Answer Correct Answer: A) Saving for a goal or something special in the future. 18. ..... is the lifeblood of a business. A) Finance Manager. B) Finance. C) Financial Management. D) Corporate Financial Management. Show Answer Correct Answer: B) Finance. 19. With the help of financial planning capital can be made available at ..... cost.(a) (b) (c) (d) A) More. B) Medium. C) Minimum. D) Zero. Show Answer Correct Answer: C) Minimum. 20. What financial statement provides a snapshot of a company's financial position at a specific point in time? A) Income statement. B) Cash flow statement. C) Balance sheet. D) Statement of retained earnings. Show Answer Correct Answer: C) Balance sheet. ← PreviousNext →Related QuizzesManagement QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 8Financial Management Quiz 9Financial Management Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books