This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 88 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 88 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Financial instruments can be supported by debt (promise of future cash) or equity (ownership in something of value). A) True. B) False. C) Maybe. D) It depends on the situation. Show Answer Correct Answer: A) True. 2. Corporation finance is a part of public finance A) True. B) False. Show Answer Correct Answer: B) False. 3. RENT, HOUSE INSTALMENT, INSURANCE, AND CREDIT CARD PAYMENT ARE: A) FIXED EXPENSES. B) VARIABLE EXPENSES. Show Answer Correct Answer: A) FIXED EXPENSES. 4. Finance is a broad term that describes activities associated with ....., leverage or debt, credit, capital markets, ....., and ..... A) Banking, money, investments. B) Banking, insurance, fintech. C) Banking, money, fintech. D) Banking, investments, fintech. Show Answer Correct Answer: A) Banking, money, investments. 5. Which of the following is/are usually seen as forms of market failure where regulation may be a solution?1. Imperfect competition2. Social costs or externalities3. Imperfect information. A) 1 only. B) 1 and 2 only. C) 2 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: D) 1, 2 and 3. 6. Which of the following is true for "Savings" ? A) The income remaining from the household sector after all consumption has taken place. B) The functional relationship between savings and the level of income is the savings function. C) Both A&B. D) None. Show Answer Correct Answer: C) Both A&B. 7. Gross working capital refers to the investment in all the current liabilities. A) True. B) False. Show Answer Correct Answer: B) False. 8. What are the components of capital structure A) Debts and equity. B) Debts, preference shares and equity. C) Debts, revenue and equity. D) None of the above. Show Answer Correct Answer: B) Debts, preference shares and equity. 9. Corporate Finance is wider than business finance A) True. B) False. Show Answer Correct Answer: A) True. 10. Which of the following is a function of the finance manager A) Mobilizing funds. B) Risk return trade off. C) Deployment of funds. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. The time lag between placing an order and actual receipt of materials is known as A) Make time. B) Lead time. C) Order placement time. D) Material receipt time. Show Answer Correct Answer: B) Lead time. 12. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960If total liabilities amounted to 598, 030 and total assets amounted to 1, 014, 082. How much is the Shareholder's Equity? A) 356, 202. B) 400, 052. C) 416, 052. D) 390052. Show Answer Correct Answer: C) 416, 052. 13. A firm borrows @12% and the tax rate is 25%. The after-tax cost of debt is ..... A) 15%. B) 9%. C) 12%. D) 25%. Show Answer Correct Answer: B) 9%. 14. Which of the following statements concerning profit are correct?1. Accounting profit is not the same as economic profit2. Profit takes account of risk3. Accounting profit can be manipulated by managers A) 1 and 3 only. B) 1 and 2 only C. C) 2 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: A) 1 and 3 only. 15. A project has an initial outflow followed by years of inflows. What would be the effect on NPV and the IRR of an increase in the cost of capital? Described to the expected impact from this increase.Item-1. NPV 2. IRR A) Increase, No Change. B) Decrease, No Change. C) No Change, No Change. D) Decrease, Decrease. Show Answer Correct Answer: B) Decrease, No Change. 16. Which things are not included in working capital? A) Account Receivable. B) Property, Building and equipment. C) Inventory. D) All answers are correct. Show Answer Correct Answer: B) Property, Building and equipment. 17. The decisions relating to the use of profits or income of an entity or organization are known A) Finance decisions. B) Dividend decisions. C) Investment Decision. D) Any of these. Show Answer Correct Answer: B) Dividend decisions. 18. Which budget focuses on a company's long-term capital investments? A) Operational budget. B) Capital budget. C) Cash budget. D) Flexible budget. Show Answer Correct Answer: B) Capital budget. 19. Maximum returns to shareholder is ensured by maximizing ..... and the market price of shares. A) EBIT. B) EBT. C) EPS. D) EAT. Show Answer Correct Answer: C) EPS. 20. In NC the insurances required by all people are A) Car insurance. B) Life insurance. C) Home insurance. D) All of the answers are correct. Show Answer Correct Answer: A) Car insurance. ← 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