This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 72 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 72 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does the term "capital gearing" refer to in finance? A) The process of raising equity capital. B) The ratio of fixed interest bearing debt to equity capital. C) The issuance of bonds and debentures. D) The allocation of capital budget to various projects. Show Answer Correct Answer: B) The ratio of fixed interest bearing debt to equity capital. 2. Which is the most important decision? A) Finance decision. B) Investment decision. C) Dividend decision. D) All of these. Show Answer Correct Answer: D) All of these. 3. Caleb is buying a new surfboard for $ 670.00, he has only 5 months to save, what does he need to save each month? A) $ 143.00. B) $ 128.00. C) $ 134.00. D) $ 138.00. Show Answer Correct Answer: C) $ 134.00. 4. Which of the following are financial assets? A) Bonds. B) Machines. C) Stock. D) Bonds and machines. Show Answer Correct Answer: D) Bonds and machines. 5. Focal point in Financial Management is A) Increasing sales of the firm. B) Creating shareholder's value. C) Increasing Profit. D) Increasing Market Share. Show Answer Correct Answer: B) Creating shareholder's value. 6. What is the meaning of wants? A) Something that you do not necessarily need it, but you still want it for luxurious lifestyle. B) Something that is needed to live. C) Something that you cannot live without it. D) Something that you like. Show Answer Correct Answer: A) Something that you do not necessarily need it, but you still want it for luxurious lifestyle. 7. All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc. A) Personal Finance. B) Consumer. C) Loan. D) Credit. Show Answer Correct Answer: A) Personal Finance. 8. Feature of financial analysis is to present the data contained in financial statements A) Easy form. B) Convenient and rational groups. C) Comparable form. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 9. Offering cash discounts to customer results in ..... ? A) Reducing the average collection period. B) Increasing sales. C) Increasing the average collection period. D) None of above. Show Answer Correct Answer: A) Reducing the average collection period. 10. The statement of cash flows A) Reports the periodic cash inflows and outflows in operating, investing and financing activities. B) Reports the revenues earned and expenses incurred by the firm during the period. C) Shows the company's total assets, broken down into current and non-current assets. D) Shows the company's capital structure for a period of time. Show Answer Correct Answer: A) Reports the periodic cash inflows and outflows in operating, investing and financing activities. 11. You place $ 500 into your checking account at First Bank and earn 1% APR on your deposit. Your professor borrows money at a rate of 8% from the same bank for a tuition loan for her son. Which of the following statements is true? A) You benefit from earning interest on your deposit, safety for your funds, and having a recognizable means for paying for your financial obligations without having to hold cash. B) You and your professor have an obvious conflict of interest because you have accounts at the same financial institution. C) The bank is criminally liable to you for paying an interest rate lower than the expected rate of inflation. D) Your professor is the only party to be made worse off by this example because she is the only party paying net interest. Show Answer Correct Answer: A) You benefit from earning interest on your deposit, safety for your funds, and having a recognizable means for paying for your financial obligations without having to hold cash. 12. Mr Patrick spends RM2 500 for household expenses every month. How much is the minimum emergency fund needed by him based on Bank Negara Malaysia suggestion? (Hint:Emergency fund is the amount Mr Patrick should have to spend on household if he suddenly doesn't have any income) A) RM15 000. B) RM12 000. C) RM10 000. D) RM7 500. Show Answer Correct Answer: A) RM15 000. 13. Financial management is mainly concerned with A) All aspects of acquiring and utilizing financial resources for firms activities. B) Arrangement of funds. C) Efficient Management of every business. D) Profit maximisation. Show Answer Correct Answer: A) All aspects of acquiring and utilizing financial resources for firms activities. 14. Which is not included in the advantages of deposit investment instruments? A) Safe, because it is guaranteed by LPS up to a certain limit. B) Low return potential. C) Relatively easy. D) Income stability. Show Answer Correct Answer: B) Low return potential. 15. You are responsible for your financial well-being A) True. B) False. Show Answer Correct Answer: A) True. 16. A notebook costs $ 7.50. Tax is 7%. Find the amount of tax for the notebook. A) .55. B) .50. C) .53. D) .35. Show Answer Correct Answer: C) .53. 17. Portion of Profit distributed to the shareholder is A) Interest. B) Dividend. C) Tax. D) Earnings. Show Answer Correct Answer: B) Dividend. 18. The fixed capital requirement of a business involving labour intensive production will be A) Less. B) More. C) Same. D) None of the above. Show Answer Correct Answer: A) Less. 19. The discount factor used to appraise capital investment decisions is a measure of: A) The current high street interest rate. B) The opportunity cost of capital of the business. C) The current inflation rate. D) The opportunity cost of capital of all businesses in the same industry. Show Answer Correct Answer: B) The opportunity cost of capital of the business. 20. Which of the following investments has a larger future value:Investment A, a $ 1, 000 investment earning 5% per year for 6 years, or Investment B, a $ 500 investment earning 10% per year for 6 years, with a bonus of an extra $ 500 added at the end of the sixth year? A) Investment B, with a future value of $ 1, 886. B) Investment A, with a future value of $ 1, 386. C) Investment A, with a future value of $ 1, 340. D) Investment B, with a future value of $ 1, 386. Show Answer Correct Answer: D) Investment B, with a future value of $ 1, 386. ← 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