This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 87 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 87 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is included in financial planning? A) Determining financial objectives. B) Determining financial policies. C) Determining financial procedures. D) All of these. Show Answer Correct Answer: D) All of these. 2. The "new issues market" ..... where first-time security issues are offered for sale ..... is called the secondary market. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 3. A firm needs to find the sources of fund and then plan to utilize or use the fund for firm's benefits. A) True. B) False. Show Answer Correct Answer: A) True. 4. Almost everyone can find at least one way to save money. A) Fact. B) Fiction. Show Answer Correct Answer: A) Fact. 5. The employees full name, address, and Social Security number. A) I-9. B) W-4. C) Personal Information. D) Paystub Record. Show Answer Correct Answer: C) Personal Information. 6. What is one reason you should keep bank account records up to date that can impact you annually? A) Tax purposes. B) Credit score. C) Inflation. D) Net worth. E) Assets. Show Answer Correct Answer: A) Tax purposes. 7. Your firm intends to finance the purchase of a new construction crane. The cost is $ 1, 500, 000. What is the size of the first payment if the crane is financed with an interest-only loan at an annual rate of 8.50%? A) $ 228, 611.56. B) $ 127, 550.00. C) $ 3, 391, 475.16. D) $ 127, 500.00. Show Answer Correct Answer: D) $ 127, 500.00. 8. A difference between actual and budgeted performance A) Ratio. B) Discrepancy. C) Budget. D) Expense. Show Answer Correct Answer: B) Discrepancy. 9. A sum of money in the hand has ..... value than the same sum to be paid in the future. A) No. B) Equal. C) Greater. D) Lesser. Show Answer Correct Answer: C) Greater. 10. Financial analysis and reporting: A) Provides insights into a company's financial health, performance, and profitability. B) Helps investors make informed investment decisions. C) Both of the above. D) Neither of the above. Show Answer Correct Answer: C) Both of the above. 11. ..... security is known as variable income security. A) Debentures. B) Preference shares. C) Equity shares. D) None of these. Show Answer Correct Answer: C) Equity shares. 12. What is it called when there is debt created without any collateral promised to the creditor? A) Secured debt. B) Unsecured debt. C) Bankruptcy. D) Insolvent. E) Total assets. Show Answer Correct Answer: B) Unsecured debt. 13. One drawback of switching from a partnership to the corporate form of organization is the following: A) It subjects the firm to additional regulations. B) It makes it more difficult for the firm to raise additional capital. C) It makes the firm's investors subject to greater potential personal liabilities. D) It makes it more difficult for the firm's investors to transfer their ownership interests. Show Answer Correct Answer: A) It subjects the firm to additional regulations. 14. A ratio that shows the company's ability to settle its short-term obligations A) Current Ratio. B) Quick Ratio. C) Acid Test Ratio. D) All answers are correct. Show Answer Correct Answer: D) All answers are correct. 15. Portion of profit after tax, which is distributed to shareholders is a A) Financing decision. B) Dividend decision. C) Investment decision. D) None of above. Show Answer Correct Answer: B) Dividend decision. 16. If net credit sales for a given year are RM400, 000 and the average accounts receivable are RM20, 000, What is the accounts receivable turnover? A) 20. B) 80. C) 200. D) 50. Show Answer Correct Answer: A) 20. 17. Assume that you are willing to postpone consumption today and buy a certificate of deposit (CD) at your local bank. Your reward for postponing consumption implies that at the end of the year ..... A) You will be able to consume fewer goods. B) You will be able to buy the same amount of goods or services. C) You will be able to buy more goods or services. D) You will be able to buy fewer goods or services. Show Answer Correct Answer: C) You will be able to buy more goods or services. 18. Which of the following does NOT form part of the objectives of a corporate governance best practice framework? A) Separation of chairperson and CEO roles. B) Establishment of audit, nomination and remuneration committees. C) Minimisation of risk. D) Employment of non-executive directors. Show Answer Correct Answer: C) Minimisation of risk. 19. EBIT of NS Ltd. is ₹ 4, 50, 000.Debt in capital structure = ₹ 6, 00, 000Cost of debt (Kd) =10%Cost of equity (Ke) = 12.5%Ignore taxation.Total market value of X Ltd. =? A) ₹ 37, 20, 000. B) ₹ 34, 72, 222. C) ₹ 32, 70, 000. D) ₹ 34, 70, 000. Show Answer Correct Answer: A) ₹ 37, 20, 000. 20. What does it mean when financial managers doing financial control? A) Comparing actual revenues, costs & expenses with its budget planning. B) Estimating the company's short and long term financial needs. C) Setting income forecast and allocating the use of the company's financial resources. D) None of above. Show Answer Correct Answer: A) Comparing actual revenues, costs & expenses with its budget planning. ← 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