This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 81 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 81 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Long term financial plan usually exceed A) 10 years. B) 20 years. C) 5 years. D) 15 years. Show Answer Correct Answer: C) 5 years. 2. A local business has made a Gross Profit of $ 150, 000 in 2019. They had $ 50 000 in wages to pay, and $ 40 000 in Rent and $ 5000 in electricity. The net profit was therefore: A) $ 245 000. B) $ 145 000. C) $ 25 000. D) $ 55 000. Show Answer Correct Answer: D) $ 55 000. 3. A capital budget is ..... A) A plan for company expenditure for the purchase of large assets such as property or manufacturing equipment. B) An estimate of cash inflows and outflows over a certain period. C) The total of the company budget that summarizes the proposed financial activities. D) None of above. Show Answer Correct Answer: A) A plan for company expenditure for the purchase of large assets such as property or manufacturing equipment. 4. When a company uses debt fund in its financial structure, it will lead to a change in A) Financial leverage. B) Operating leverage. C) Money market leverage. D) Stock market leverage. Show Answer Correct Answer: A) Financial leverage. 5. Bad debts refers to default cost. A) True. B) False. C) May be. D) None. Show Answer Correct Answer: A) True. 6. All of the decisions and activities of an individual or a family regarding their money, including spending, saving, saving, and budgeting. A) Personal finance. B) Financial management. C) Cash flow analysis. D) None of above. Show Answer Correct Answer: A) Personal finance. 7. What is a credit score? A) A small plastic card that lets you make a purchase without cash. B) How much money you make compared to how much money you owe?. C) A number that helps a lender predict how likely an individual is to repay a loan. D) None of above. Show Answer Correct Answer: C) A number that helps a lender predict how likely an individual is to repay a loan. 8. The feasibility of an investment project can be assessed using A) Time Value of Money Approach. B) Capital Budgeting Approach. C) Amount of Depreciation. D) Answers a and b are correct. Show Answer Correct Answer: D) Answers a and b are correct. 9. Holly Corporations' net income was P400, 000 in 2015 and P1, 600, 000 in 20216. What percentage increase in net income must Holly achieve in 2017 to offset the decline in profits in 2016? A) 60%. B) 150%. C) 600%. D) 67%. Show Answer Correct Answer: B) 150%. 10. What is the primary goal of financial strategy formulation? A) Maximizing shareholder wealth. B) Maximizing revenue. C) Minimizing expenses. D) Achieving operational efficiency. Show Answer Correct Answer: A) Maximizing shareholder wealth. 11. Which is the correct financial statement flow? A) Financial Reports > General Journal > General Ledger. B) General Journal > General Ledger > Financial Reports. C) General Ledger > General Journal > Financial reports. D) Small Book > Big Book > Marriage Book. E) Single Entry > Double Entry > Laporan Keuangan. Show Answer Correct Answer: B) General Journal > General Ledger > Financial Reports. 12. What is a depreciation? A) A cash outflow. B) Accounting expression for the act of selling an asset. C) An income-decreasing expense that does not affect cash-flows. D) A side calculation done by auditors. Show Answer Correct Answer: C) An income-decreasing expense that does not affect cash-flows. 13. Cannot be controlled and that must be paid to operate a business. They include depreciation on buildings and equipment and salaries paid to managers A) COMMITTED. B) DISCRETIONARY. C) Controllable. D) None of above. Show Answer Correct Answer: A) COMMITTED. 14. Which of the following would NOT improve the current ratio? A) Borrow short term to finance additional fixed assets. B) Issue long-term debt to buy inventory. C) Sell common stock to reduce current liabilities. D) Sell fixed assets to reduce accounts payable. Show Answer Correct Answer: A) Borrow short term to finance additional fixed assets. 15. Average U.S. wages in 1990 were $ 28, 960, far larger than the average wage in 1930 of $ 1, 970. What was the average annual increase in wages over this 60-year period? A) 4.58%. B) 2.45%. C) 24.50%. D) 3.31%. Show Answer Correct Answer: A) 4.58%. 16. Which of the following is NOT an example of an business expense A) Car loan. B) Staff Wages. C) Electricity Bill. D) Rent paid. Show Answer Correct Answer: A) Car loan. 17. Pedro is saving for a car and needs $ 8, 000, he will save for 3 years. How much does he need to save each month to make his goal? A) $ 225.00. B) $ 230.00. C) $ 222.22. D) $ 250.00. Show Answer Correct Answer: C) $ 222.22. 18. The following accounts are part of the Balance Sheet, EXCEPT: A) Account Receivable. B) Inventories. C) Depreciation and Amortization expenses. D) Patent & Goodwill. Show Answer Correct Answer: C) Depreciation and Amortization expenses. 19. What is the first financial model? A) Savings. B) Investment. C) Profits. D) Financial freedom. Show Answer Correct Answer: A) Savings. 20. A merger in which an entirely new form is created and both the acquired or acquiring form cease to exist is called a a A) Divestiture. B) Consolidation. C) Tendor offer. D) None of the above. Show Answer Correct Answer: B) Consolidation. ← 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