This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 70 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 70 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Mr Liew and his wife have a total income of RM12 600 a month. They have three children and they would like to save an amount of RM250 000 for their children's education in 15 years from now. What is the minimum amount they need to save every month for their education fund? A) RM 1 360. B) RM 1 380. C) RM 1400. D) None of above. Show Answer Correct Answer: B) RM 1 380. 2. Commercial paper is the instrument of ..... A) Secondary market. B) Primary market. C) Capital market. D) Money market. Show Answer Correct Answer: D) Money market. 3. The federal program that assists older Americans with insurance and income is called A) FICA (Federal Insurance Contribution Act). B) Federal Income Tax. C) State Income Tax. D) Physician's Mutual Insurance. Show Answer Correct Answer: A) FICA (Federal Insurance Contribution Act). 4. Amount by which total revenues exceeds total revenues. A) Revenues. B) Net Income. C) Net Loss. D) Expenses. Show Answer Correct Answer: B) Net Income. 5. A business organization can obtain funds from- A) Issue of preference or equity share capital. B) Issue of debentures. C) Loan from banks and financial institution. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. Current assets are the assets that are either used up or converted to cash during the normal cycle of business. A) True. B) False. Show Answer Correct Answer: A) True. 7. A ..... is a financial plan that reflects anticipated revenue and shows how it will be allocated in the operation of the business. A) Financial forecast. B) Financial plan. C) Accounting equation. D) Budget. Show Answer Correct Answer: D) Budget. 8. If the "original price" a item is $ 18.00 and has a 15% discount, what is the new discounted sale price: A) $ 2.70. B) $ 18.50. C) $ 15.30. D) $ 15.00. Show Answer Correct Answer: C) $ 15.30. 9. Calculate the cash flow for Mr. Rabbani Active Income:RM3, 000Passive Income:RM350Fixed Expenses:RM 2, 300Variable Expenses:RM 250 Then, determine whether it is Deficit or Surplus. A) -800 (Deficit). B) 1000 (Surplus). C) 800 (Surplus). D) -1000 (Deficit). Show Answer Correct Answer: C) 800 (Surplus). 10. Decrease in accounts payable A) Investing Activities. B) Operating ACtivities. C) Financing Activities. D) None of above. Show Answer Correct Answer: B) Operating ACtivities. 11. Which of the following is not an advantage of separation of ownership and management of corporations? A) Corporations can exist forever. B) Professional managers can be hired. C) Agency costs are incurred. D) Transfer of ownership can be facilitated without affecting the operations of the firm. Show Answer Correct Answer: C) Agency costs are incurred. 12. How long has it has to been if you have moved for you not to report it on your credit report? A) 4 years. B) 3 years. C) 2 years. D) 1 year. E) Pluto. Show Answer Correct Answer: C) 2 years. 13. Stock market is bullish, company must raise funds through A) Debt. B) Equity. C) Both. D) None. Show Answer Correct Answer: B) Equity. 14. ASSETS = LIABILITIES + OWNER'S EQUITY is known as the, ..... A) Accounts payable. B) Accounting equation. C) Financial statements. D) Income statement. Show Answer Correct Answer: B) Accounting equation. 15. Marginal cost of capital is the cost of A) Additional Sales. B) Additional Funds. C) Additional Interests. D) None of the above. Show Answer Correct Answer: B) Additional Funds. 16. Paulo plans to buy a holiday villa in five years' time for cash. He estimates the cost will be $ 1.5m. He plans to set aside the same amount of funds each year for five years, starting immediately and earning a rate of 10% interest per annum compound. To the nearest $ 100, how much does he need to set aside each year? A) $ 223, 200. B) $ 223, 300. C) $ 223, 400. D) $ 223, 100. Show Answer Correct Answer: C) $ 223, 400. 17. ABC Corporation issued and sold 10 shares of stock to Irene Investor, a private individual. This represents a secondary market transaction. A) True. B) False. Show Answer Correct Answer: B) False. 18. Types of Investment decisions A) Long-term, Medium-term and short term. B) LOng-term and Medium-term. C) Long-term and short term. D) No classification. Show Answer Correct Answer: C) Long-term and short term. 19. When you withdraw money from your checking account, this is called a/n ..... A) Debit. B) Credit. C) Bad Idea. D) Subtraction. Show Answer Correct Answer: A) Debit. 20. This tax includes two separate taxes:Social Security and Medicare A) State Withholding Tax. B) FICA. C) Federeal Withholding Tax. D) Medical. Show Answer Correct Answer: B) FICA. ← 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