This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 71 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 71 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Merger of two or more companies or business undertaking to form new company means A) Reconstruction. B) Amalgamation. C) Absorption. D) None of the above. Show Answer Correct Answer: B) Amalgamation. 2. A CFO is responsible for all financial activities of the company A) True. B) False. Show Answer Correct Answer: A) True. 3. Which of the following is component in cash receipt. A) Purchasing materials. B) Wages. C) Dividend received. D) Acquire fixed asset. Show Answer Correct Answer: C) Dividend received. 4. You recently sold 2000 shares of Petronas Bhd to your friend. This is an example of a primary market transaction. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 5. Preparation of a detailed, comprehensive and personalized plan for each company in which the objectives to be achieved and the costs that this will entail are determined, the resources that will be necessary are identified and a deadline is set to make them a reality. A) Value added. B) Economic indicators. C) Financial planning. D) Efficiency. Show Answer Correct Answer: C) Financial planning. 6. What document gives rights to hold assets on someone else's behalf A) Medical Directive. B) Power of Attorney. C) Will. D) Living Trust. E) Probate. Show Answer Correct Answer: C) Will. 7. Which method of bill payment is programmed to pay the same amount to your lender each month on the same date? A) Cash (in person). B) Automatic Draft. C) Debit Card. D) None of above. Show Answer Correct Answer: B) Automatic Draft. 8. ..... is the example of a financial decision. A) Investment decision. B) Financing decision. C) Dividend decision. D) All of these. Show Answer Correct Answer: D) All of these. 9. ..... and utilization of funds are the finance function A) Acquisition. B) Merger. C) None. D) Both. Show Answer Correct Answer: A) Acquisition. 10. The decision related to distribution of residual profit is called A) (a) Investment decision. B) (b) Financing decision. C) C) Dividend decision. D) (d) None of the above. Show Answer Correct Answer: C) C) Dividend decision. 11. An interest rate that may change depending on other factors, such as the prime rate. A) Fixed-rate APR. B) Introductory APR. C) Interest. D) Variable-rate APR. Show Answer Correct Answer: D) Variable-rate APR. 12. Corporations that accept money from savers andthen use these funds to buy stocks, long-term bonds, or short-term debt instruments issued by businesses or government units A) Mutual funds. B) Life insurance company. C) Pension funds. D) Credit union. Show Answer Correct Answer: A) Mutual funds. 13. Which of the following figure is irrelevant while calculating cost of redeemable preference shares? A) Floatation cost. B) Discount. C) EPS. D) Net proceeds. Show Answer Correct Answer: C) EPS. 14. Out of which affects Financial management: A) The quantum of current assets and its break-up into cash, inventory and receivables. B) The amount of long-term and short-term funds to be used. C) All Incomes in the Profit and Loss Account. D) A and B. Show Answer Correct Answer: D) A and B. 15. ..... means the organization should operate efficiently in order to maximize the value of the stock price hence increase the shareholders confidence level. A) Wealth maximization. B) Profit maximization. C) Funding operational expenses. D) Tax considerations. Show Answer Correct Answer: A) Wealth maximization. 16. Financial statements that have not undergone external auditing procedures may prove to be inaccurate or worse, fraudulent hence, do not fairly present the company's financial condition. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 17. Acquire assets should be recorded at their actual hitorical cost. A) Matching Principle. B) Objectivity Principle. C) Historical Cost. D) Revenue Recognition Principle. Show Answer Correct Answer: C) Historical Cost. 18. This means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. A) Capital structure. B) Investment. C) Financial Decision. D) Financial management. Show Answer Correct Answer: D) Financial management. 19. The following are all characteristeristics of a security finance except: A) Repayment is very limited. B) Also called debt capital. C) Major part of company's total capitalization. D) Long-term source of finance. Show Answer Correct Answer: B) Also called debt capital. 20. Commercial Banks normally provide short-term finance which is payable within a week. A) False. B) True. Show Answer Correct Answer: A) False. ← 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