This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 85 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 85 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The original purchase price of an asset less its accumulated depreciation, is the meaning of ..... A) Book Value. B) Intrinsic Value. C) Market Value. D) Equity Value. Show Answer Correct Answer: A) Book Value. 2. On the asset side, we have ..... as our current asset and ..... as the long-term asset. A) Equipment, inventory. B) Inventory, equipment. C) Equipment, investments. D) Inventory, investments. Show Answer Correct Answer: B) Inventory, equipment. 3. What is a purpose of financial analysis? A) Identifying areas of cost reduction. B) Determining the value of a business. C) Developing long-term growth strategies. D) Calculating the return on investment. Show Answer Correct Answer: D) Calculating the return on investment. 4. Makayla bought a new outfit for $ 80.00. If sales tax was 6.75% what was the total price of the outfit? A) $ 85.40. B) $ 86.40. C) $ 85.04. D) $ 87.50. Show Answer Correct Answer: A) $ 85.40. 5. ..... can help to deal with agency problem. A) Corporate policies. B) Corporate responsibility. C) Corporate ethics. D) Corporate governance. Show Answer Correct Answer: D) Corporate governance. 6. An organization that underwrites anddistributes new investment securities and helps businesses obtainfinancing. A) Investment banks. B) Commercial banks. C) Financial services corporations. D) None of above. Show Answer Correct Answer: A) Investment banks. 7. As the economy booms and approaches the limits of productivity at a point in time, a manufacturing business would typically feel which one of the following effects? A) Increased inflation (higher sales prices and higher costs), difficulty in finding suitable candidates to fill roles and higher interest rates. B) High export demand, increasing growth rates, high inflation and high interest rates. C) Reducing inflation, falling demand, reducing investment, increasing unemployment. D) Higher government spending, lower tax rates, high inflation and low unemployment. Show Answer Correct Answer: A) Increased inflation (higher sales prices and higher costs), difficulty in finding suitable candidates to fill roles and higher interest rates. 8. Income from investment A) Property. B) Risk. C) Investment. D) Return. Show Answer Correct Answer: D) Return. 9. Granting a loan and the creation of debt; any form of deferred payment A) Debit. B) Credit. C) Credit card. D) Debt. Show Answer Correct Answer: B) Credit. 10. Money that you make is called ..... A) Income. B) Variable expense. C) Propery taxes. D) Fixed expense. Show Answer Correct Answer: A) Income. 11. Are the following statements true or false? True False 1. Cash flow forecasting is primarily the responsibility of financial reporting. 2. Whether to undertake a particular new project is a financial management decision. A) True & False. B) True & True. C) False and False. D) False & True. Show Answer Correct Answer: A) True & False. 12. Mr. Singh's company uses labour intensive technique, he requires ..... fixed capital A) More. B) Less. C) No. D) None of above. Show Answer Correct Answer: B) Less. 13. Chris gets a monthly statement each month to pay his ..... A) Barber. B) Credit Card. C) Debit card. D) Saving account. Show Answer Correct Answer: B) Credit Card. 14. Firms having longer processing cycle require A) More fixed capital. B) No fixed capital. C) More working capital. D) Less working capital. Show Answer Correct Answer: C) More working capital. 15. Average cost of capital in case of optimum capital structure is- A) Highest. B) Lowest. C) Zero. D) None of these. Show Answer Correct Answer: B) Lowest. 16. A cash budget is a plan for the amount expected to be spent and earned over a given period of time. A) True. B) False. Show Answer Correct Answer: B) False. 17. In designing a Management Control System, we must be sensitive to changes in the characteristics of our business environment, which are triggered by drivers of change. Therefore, the mindset of managers must change to view business now. There are several mindsets that managers must have, including, EXCEPT: A) Customer Value Mindset. B) Opportunity Mindset. C) Continuous Improvement Mindset. D) Boss Mindset. Show Answer Correct Answer: D) Boss Mindset. 18. The most popular alternative to NPV for capital budgeting decisions is the ..... method. A) Internal rate of return (IRR). B) Payback period. C) Discounted payback period. D) Profitability index. Show Answer Correct Answer: A) Internal rate of return (IRR). 19. All of the following are important aspects of effect investment except A) Timing of the cash flow stream. B) Amount of expected cash flows. C) Risk of the cash flows. D) None of the above. Show Answer Correct Answer: D) None of the above. 20. Increase in current assets or decrease in current liabilities increases the current ratio A) True. B) False. Show Answer Correct Answer: A) True. ← 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