This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 76 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 76 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is done to identify problems and overcome risks? A) Having a plan in place just in case you lose your job. B) Identify all financial problems and risks that may arise. C) Just identify investment losses. D) Avoid risks completely. Show Answer Correct Answer: B) Identify all financial problems and risks that may arise. 2. When interest rates are stated or given for loan repayments, it is assumed that they are ..... unless specifically stated otherwise. A) Annual percentage rates. B) Compound percentage rates. C) Effective annual rates. D) APYs. Show Answer Correct Answer: A) Annual percentage rates. 3. Choose the correct way to review and revise progress of a financial plan. A) Financial management does not need regular review. B) Review effects financial management on regular basis. C) Ask older people. D) Budget made must be followed despite the changing in income and needs. Show Answer Correct Answer: B) Review effects financial management on regular basis. 4. From a financial point of view, a company that decides to develop new product is making A) A financing decision. B) An investment decision. C) A capital structure decision. D) A cash flow decision. Show Answer Correct Answer: B) An investment decision. 5. If current liabilities are RM100, 000 and current assets are RM200, 000, what is the current ratio? A) 0.50. B) 1.20. C) 1.50. D) 2.00. E) NOT IN THE CHOICES. Show Answer Correct Answer: D) 2.00. 6. Which type of bank offers the entire range of banking services, such as checking and savings accounts, loans, and financial advice? A) Commercial Banks. B) Savings and Loan Associations. C) Credit Unions. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. Advertising campaign is an example of A) Short term investment decision. B) Financial decision. C) Long term investment decision. D) Dividend decision. Show Answer Correct Answer: C) Long term investment decision. 8. Which item listed below is not funded by taxes in your community? A) Public library. B) Community center. C) Fast food restaurant. D) None of above. Show Answer Correct Answer: C) Fast food restaurant. 9. What practices can be done to reduce agency cost? A) Giving investment. B) Paying salary. C) Corporate governance. D) Dividend. Show Answer Correct Answer: C) Corporate governance. 10. Comment on the validity of the following statements, in relation to the Efficient Market Hypothesis. Statement 1:An inefficient market is one in which the value of securities is not always an accurate reflection of the available information. Statement 2:In a semi-strong form market the share price incorporates all past information and all publicly-available information. A) False, False. B) True, False. C) False, True. D) True, True. Show Answer Correct Answer: D) True, True. 11. Easy access to capital market allows firm to give more dividend A) True. B) False. Show Answer Correct Answer: A) True. 12. What is the present value of perpetual annuity of Rs. 1, 00, 000 p.a. at the discounting rate of 10%? A) Rs. 10, 000. B) Rs. 10, 00, 000. C) Rs. 1, 00, 00, 000. D) Rs. 1, 000. Show Answer Correct Answer: B) Rs. 10, 00, 000. 13. Loaf Company uses the direct method in determining the net cash provided by operating activities. During the year, operating expenses was P208, 000, prepaid expenses increased by P16, 000, and accrued expenses payable increased by P24, 000. Cash payments for operating activities amounted to: A) 208, 000. B) 224, 000. C) 200, 000. D) 216, 000. Show Answer Correct Answer: C) 200, 000. 14. Who is someone who acquires goods and services for his or her own personal use? A) Producer. B) Consumer. C) Market economy. D) Seller. E) Superman. Show Answer Correct Answer: B) Consumer. 15. Accounts receivable management based on the principle, as liquidity increases the return decreases? A) True. B) False. C) All of them. D) None of above. Show Answer Correct Answer: A) True. 16. The amount money a person expects to have in the future is called A) Principal. B) Future Value. C) Simple Interest. D) Present Value. Show Answer Correct Answer: B) Future Value. 17. The compound average annual rate of return assuming that the bond will be called by the issuer at some point prior to the maturity date, is the meaning of ..... A) Current Yield. B) Yield to Maturity. C) Yield to Call. D) Average Return. Show Answer Correct Answer: C) Yield to Call. 18. Which of the following is a long-term source of finance for a company? A) Bank overdraft. B) Trade credit. C) Equity shares. D) Short-term loans. Show Answer Correct Answer: C) Equity shares. 19. Alexis bought a new skirt and blouse with a purchase price of $ 100.00. Calculate 6.75% sales tax for her purchase. A) $ 6.75. B) $ 10. C) $ 13. D) None of above. Show Answer Correct Answer: A) $ 6.75. 20. Is a company issue bonus shares the debt equity ratio A) A. Remain unaffected. B) B will be affected. C) C. Will improve. D) D. None of the above. Show Answer Correct Answer: C) C. Will improve. ← 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