This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 90 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 90 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Logan has recently started a small business and Sam, a business analyst, is helping him understand his financial performance. Sam wants to calculate the return on investment (ROI) for Logan's business. Which formula should he use? A) ROI = (Net Profit / Initial Investment). B) ROI = (Net Profit / Initial Investment) * 100. C) ROI = (Net Profit / Total Revenue) * 100. D) ROI = (Net Profit / Total Assets) * 100. Show Answer Correct Answer: B) ROI = (Net Profit / Initial Investment) * 100. 2. Which of the following statements describes the main objective of financial management? A) Efficient acquisition and deployment of financial resources to ensure achievement of objectives. B) Providing information to management for day to day functions of control and decision making. C) Providing information to external users about the historical results of the organisation. D) Maximisation of shareholder wealth. Show Answer Correct Answer: A) Efficient acquisition and deployment of financial resources to ensure achievement of objectives. 3. The traditional approach is also known as A) 2 Ap lower ch. B) N o the appr. C) Mm approach. D) Intermediate approach. Show Answer Correct Answer: D) Intermediate approach. 4. The mission of the State Reserve is to provide the United States with a safe, flexible, and stable monetary and financial system. A) True. B) False. Show Answer Correct Answer: B) False. 5. Who Is not a TA A) Clever. B) Simon. C) Monteverde. D) Dinter. E) Collins. Show Answer Correct Answer: D) Dinter. 6. Treasurer should report to A) A. Chief financial officer. B) B. Vice president of operations. C) C chief executive officer. D) D. Board of directors. Show Answer Correct Answer: A) A. Chief financial officer. 7. These are the factors that influence market price of the corporation's stocks which are controllable by management, EXCEPT: A) Dividends. B) Competent management. C) Profitability. D) Macroeconomic conditions. Show Answer Correct Answer: D) Macroeconomic conditions. 8. What is the definition of a market cap? A) The 5 year market cap. B) The highest price of a stock for the day. C) The total price of all the shares in a company. D) Percentage of growth. E) Maximum amount of volume. Show Answer Correct Answer: C) The total price of all the shares in a company. 9. Cash dividends payments A) Operating Activities. B) Financing Activities. C) Investing Activities. D) None of above. Show Answer Correct Answer: A) Operating Activities. 10. ) "Living within your means" is a principle that promotes ..... and avoiding excessive debt. A) Overspending. B) Impulsive spending. C) Financial stability. D) Ignoring budgeting. Show Answer Correct Answer: C) Financial stability. 11. All are reasons why it is important to set goals EXCEPT ..... A) They keep you from being unfocused. B) They help you see progress. C) They motivate you. D) They give your life direction. Show Answer Correct Answer: A) They keep you from being unfocused. 12. Which of the following is true for net income approach A) Hi adept increase value of the firm. B) Higher Dept is better. C) Low adept increases weighted average cost of capital. D) All of the above. Show Answer Correct Answer: B) Higher Dept is better. 13. Which of the following is NOT typically thought of as an investment activity? A) Accurately pricing financial assets. B) The process of buying and selling financial assets. C) Repaying borrowed funds. D) Negotiating the rules and regulations of financial transactions. Show Answer Correct Answer: C) Repaying borrowed funds. 14. For knowing the Present Value of a perpetuity, we use A) PVF. B) PVAF. C) Annuity$\div$. D) None of the above. Show Answer Correct Answer: C) Annuity$\div$. 15. Business Activities will produce a Profit/Loss Report. To run a business you need assets. And to obtain assets, a source of funds is needed. The following are sources of funds, EXCEPT: A) Capital (Shareholder Funds). B) 3rd party loan debt (ex. Bank, MTN, Bonds, etc.). C) Answers a and b are both correct. D) Customer Receivables. Show Answer Correct Answer: D) Customer Receivables. 16. Which of the following is NOT provided in a ticker? A) Ticker symbol. B) Volume of shares. C) Which stock to buy. D) Price change. E) Percentage change from previous session close. Show Answer Correct Answer: C) Which stock to buy. 17. Present value takes A) Compounding rate. B) Deflation rate. C) Inflation rate. D) Discounting rate. Show Answer Correct Answer: D) Discounting rate. 18. Which budget is designed to estimate a company's cash inflows and outflows? A) Master budget. B) Capital budget. C) Cash budget. D) Operational budget . Show Answer Correct Answer: C) Cash budget. 19. A stronger cash flow position prefers ..... A) Debt. B) Equity. C) Both debt and equity. D) None. Show Answer Correct Answer: A) Debt. 20. Which of the following argues that the value of levered firm is higher than that of the early word firm A) Net income approach. B) Net operating income approach. C) Mm model with taxes. D) Both a and C. Show Answer Correct Answer: D) Both a and C. ← 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