This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 75 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 75 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Who is the most common creditor A) A bank. B) A person. C) A school. D) The government. E) Your parents. Show Answer Correct Answer: A) A bank. 2. ROI stands for A) Rate of interest. B) Return on investment. C) Risk of investment. D) None of these. Show Answer Correct Answer: B) Return on investment. 3. There are 12 months in a year. How many years is 48 months? A) 3. B) 4. C) 5. D) None of above. Show Answer Correct Answer: B) 4. 4. What is the chief financial question before an organisation? A) How much finance will be required for various business activities. B) How much amount can be acquired from various resources. C) How the profit of the business will be divided. D) All of these. Show Answer Correct Answer: D) All of these. 5. Which of the following is NOT a component of financial strategy formulation? A) Budgeting and forecasting. B) Marketing strategy. C) Capital structure decisions. D) Investment analysis. Show Answer Correct Answer: B) Marketing strategy. 6. What is the term for the process of converting future cash flows into today's equivalent value to make meaningful comparisons? A) Capital Budgeting. B) Liquidity Management. C) Present Value (PV). D) Investment Appraisal. Show Answer Correct Answer: C) Present Value (PV). 7. Nature of business is an important factor to decide requirement of fixed capital. A) True. B) False. Show Answer Correct Answer: A) True. 8. Finance managers need to interact constantly with A) Marketing managers. B) Accounting staff. C) Management information systems staff. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. You should log off when you're finished accessing your bank online. A) True. B) False. Show Answer Correct Answer: A) True. 10. Investment in Fixed Assets is-of decision- A) Investment. B) Financing. C) Dividend. D) None of these. Show Answer Correct Answer: A) Investment. 11. Which one of these is an investment? A) A mutual fund. B) Real estate. C) Bank investments accounts. D) Loans. E) Cash. Show Answer Correct Answer: A) A mutual fund. 12. Convert 7% to a decimal A) .07. B) .007. C) 7.0. D) None of above. Show Answer Correct Answer: A) .07. 13. Cooperative associations whose members aresupposed to have a common bond, such as being employees of thesame firm. Members' savings are loaned only to other members, generally for auto purchases, home improvement loans, and homemortgages. A) Credit union. B) Pension funds. C) Life insurance company. D) Mutual funds. Show Answer Correct Answer: A) Credit union. 14. The first step in monitoring of plan is: A) Suggesting corrective action. B) Review the plan. C) Identify Variances. D) None. Show Answer Correct Answer: B) Review the plan. 15. A form W-4 allows tax payers to claim certain allowances to determine what? A) The amount of children you have. B) The status of your citizenship. C) The amount of federal taxes with held from your paycheck. D) The eligibility of an employee. Show Answer Correct Answer: C) The amount of federal taxes with held from your paycheck. 16. If the current assets of a firm is Rs 120000, long term debt-Rs 80000, current liability Rs 40000 then Net working capital is- A) 120000. B) 80000. C) 40000. D) Zero. Show Answer Correct Answer: B) 80000. 17. The lifeblood of all Business concern. A) Tip. B) Finance. C) Credit. D) Loan. Show Answer Correct Answer: B) Finance. 18. All of these are ways to better control your debt EXCEPT A) Get advice from professionals or organizations. B) Make a list of everything you owe. C) Prioritize your most important debts. D) Use credit card to spend lots of money. E) Make a personal budget. Show Answer Correct Answer: D) Use credit card to spend lots of money. 19. What is another word for currency? A) Money. B) Paper. C) Candy. D) Bank. Show Answer Correct Answer: A) Money. 20. Your grandmother places $ 13, 000 into an account earning an interest rate of 7% per year. After 5 years the account will be valued at $ 18, 233.17. Which of the following statements is correct? A) The principal is $ 13, 000, the time period is 5 years, the future value is $ 18, 233.17, and the interest rate is 7%. B) The future value is $ 13, 000, the time period is 5 years, the principal is $ 18, 233.17, and the interest rate is 7%. C) The principal is $ 13, 000, the time period is 5 years, the future value is $ 18, 333.17, and the interest rate is 7%. D) The principal is $ 13, 000, the time period is 7 years, the future value is $ 18, 233.17, and the interest rate is 5%. Show Answer Correct Answer: A) The principal is $ 13, 000, the time period is 5 years, the future value is $ 18, 233.17, and the interest rate is 7%. ← 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