This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 93 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 93 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Also known as liquid assests A) Investment. B) Savings. Show Answer Correct Answer: B) Savings. 2. Cash flow management: A) Ensures adequate liquidity to meet short-term obligations. B) Manages working capital. C) Invests surplus funds effectively. D) All of the above. Show Answer Correct Answer: A) Ensures adequate liquidity to meet short-term obligations. 3. How many TA's are there? A) 8. B) 6. C) 7. D) 9. E) 5. Show Answer Correct Answer: C) 7. 4. Where is the signature on a credit or debit card? A) Front of card. B) Back of card. C) No place for a signature on the card. D) Under the card number. Show Answer Correct Answer: B) Back of card. 5. For whom the analysis of financial statements is not significant? A) Investor. B) Government. C) Ambassador of India. D) Company's Employee. Show Answer Correct Answer: C) Ambassador of India. 6. ..... involves increasing the proportion of debt and preference shares in total capital. A) Trading on equity. B) Capital Budgeting. C) Financing decision. D) Financial Analysis. Show Answer Correct Answer: A) Trading on equity. 7. Shadowline Co has a money cost of capital of 10%. If inflation is 4%, what is Shadowline Co's real cost of capital? (to one decimal place)? A) 5.5%. B) 5.9%. C) 5.7%. D) 5.8%. Show Answer Correct Answer: D) 5.8%. 8. Where a function reaches a highest point A) Maximum cost. B) Minimum. C) Maximum value. D) Maximum. Show Answer Correct Answer: C) Maximum value. 9. What is the EAR if the APR is 10.52% and compounding is daily? A) Slightly above 10.09%. B) Slightly below 11.09%. C) Slightly above 11.09%. D) Over 11.25%. Show Answer Correct Answer: C) Slightly above 11.09%. 10. Financial systems and policies must be consistent but that does not mean they cannot be adjusted if there are changes in an organization. This is one of the principles of financial management, namely: A) Transparency. B) Consistency. C) Accounting standards. D) Accountability. Show Answer Correct Answer: B) Consistency. 11. Which formula is used to measure the degree of operating leverage A) EBT/EBIT. B) Contribution/EBIT. C) EBIT/EBT. D) EBIT/CONTRIBUTION. Show Answer Correct Answer: B) Contribution/EBIT. 12. To prepare a budget, a business must be able to identify and predict the amount of each source of income and each type of expense. A) True. B) False. Show Answer Correct Answer: A) True. 13. The process in which a company buys securities in one market and sells securities in another market at the same time is called A) Homemade leverage. B) Arbitrage. C) Corporate debt raising process. D) None of the above. Show Answer Correct Answer: B) Arbitrage. 14. These are cash flows that have occurred in the past and cannot be recovered regardless of the investment decision, so they cannot affect our decision, is the meaning of ..... A) Flotation Cost. B) Sunk Cost. C) Variable Cost. D) Fixed Cost. Show Answer Correct Answer: B) Sunk Cost. 15. The main objective of Financial Management on the basis of old concept- A) Maximisation of profit. B) Maximization of wealth. C) Both(a) and (b). D) None of these. Show Answer Correct Answer: A) Maximisation of profit. 16. It is anything generally accepted as a means of paying for goods and services and for paying off debts or liabilities. A) Finance. B) Money. C) Bills. D) Coins. Show Answer Correct Answer: B) Money. 17. Below is information from PT Lulus Long term debt:$ 1, 500 Short term debt:$ 300 Equity:$ 250 How many total assets does PT Lulus have? A) $ 3.000. B) $ 2.500. C) $ 2.050. D) $ 1.250. Show Answer Correct Answer: C) $ 2.050. 18. This account allows you to withdraw money, pay a bill, or make purchases easily. A) Checking Account. B) Savings Account. C) Market Money Account. D) CD Account. Show Answer Correct Answer: A) Checking Account. 19. Which of the following financial goals does not meet the SMART concept? A) Save RM5 000 as registration fees of college after 2 years. B) Buy a new watch worth RM500 by next year. C) Save RM2 000 to buy video games by next year. D) Save RM5 000 to bring parents on vacation to Japan. Show Answer Correct Answer: D) Save RM5 000 to bring parents on vacation to Japan. 20. My mom makes me cut the grass but she pays me when I do. A) Spending. B) Saving. C) Earning. D) Investing. Show Answer Correct Answer: C) Earning. ← 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