This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 94 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 94 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. These deposits mature after a considerable long period like 1 year or more than that the rate of interest is fixed. A) Fixed deposits. B) Current A/C deposits. C) Savings bank A/C. D) Recurring deposit A/C. Show Answer Correct Answer: A) Fixed deposits. 2. This shows how the business is structured and who oversees whom. A) Management plan. B) Mission statement. C) Procedures. D) Organizational chart. Show Answer Correct Answer: D) Organizational chart. 3. What is mobile banking? A) An electronic way to view account activity and pay bills via the internet and an institution's website. B) A written order for a bank to pay money out of the account holders account. C) A record of income and spending and a plan for managing money. D) A wireless service that allows financial transactions by using an app or web browser from a mobile device. Show Answer Correct Answer: D) A wireless service that allows financial transactions by using an app or web browser from a mobile device. 4. A business will sometimes factor its receivable assets to meet its present and immediate cash needs. What does factoring mean? A) It's when a business sells its accounts receivable (i.e., invoices) to a third party at a discount. B) It's a debt document bond with a promise to pay back the amount borrowed, with interest, on a certain date. Show Answer Correct Answer: A) It's when a business sells its accounts receivable (i.e., invoices) to a third party at a discount. 5. A company issued 10, 000, 10% Debentures of Rs. 100 each on 1.4.2020 to be matured on 1.4.2025. The company wants to know the current cost of its existing debt and the market price of the debenture is Rs. 80. Compute the cost of existing debenture assuming 35 % tax rate using NPV Method or IRR Method A) Around 12.21 %. B) Around 14.21 %. C) Around 9.21 %. D) None of these. Show Answer Correct Answer: A) Around 12.21 %. 6. After a merger the difference between the value of the combined entities and the sum of the values of the separate entity is A) A pooling of interest. B) Consolidation. C) Goodwill. D) Synergy. Show Answer Correct Answer: D) Synergy. 7. The term used to describe the process of determining how a firm should allocate scarce capital resources to available long-term investment opportunities, is the meaning of ..... A) Capital Budgeting. B) Capital Structure. C) Working Capital. D) Cost of Capital. Show Answer Correct Answer: A) Capital Budgeting. 8. What method of payment would you choose to use if your telephone bill is due today? A) Automatic Draft. B) Check. C) Cash (in person). D) None of above. Show Answer Correct Answer: C) Cash (in person). 9. If notes payable increases, the cash flow will be ..... ? A) INCREASES. B) DECREASES. Show Answer Correct Answer: A) INCREASES. 10. A bank offers the following investments. Which do you prefer? A) A stated rate of 10% continuously compounded. B) Stated rate of 10% compounded annually. C) A stated rate of 10% compounded semi-annually. D) A rate of 10% simple interest. Show Answer Correct Answer: A) A stated rate of 10% continuously compounded. 11. A plan specifying how money will be used or spent during a particular period. A) Financial plan. B) Financial forecast. C) Budget. D) Owner's equity. Show Answer Correct Answer: C) Budget. 12. Why is estate planning so important? A) Because you plan out what you want. B) Protects minor beneficiaries from making poor decisions with new assets. C) Because it allows you to appoint a beneficiary. D) Because it allows you to appoint an executor. E) Allows a trustee to hold the settlor's property for the person. Show Answer Correct Answer: B) Protects minor beneficiaries from making poor decisions with new assets. 13. The following are the types of mutual funds, except: A) Money market mutual funds. B) Fixed income mutual funds. C) Sharia mutual funds. D) Index Mutual Funds. Show Answer Correct Answer: C) Sharia mutual funds. 14. Dividends are paid by corporations to existing shareholders based on their shareholdings in the company as a return on their investment. A) True. B) False. Show Answer Correct Answer: A) True. 15. Amalgamation is said to be in the nature of merger A) All assets and liabilities of transferor company are taken over by the transferee company. B) Business of transferor company is intended to be carried on by the transferee company. C) But she is consideration must be paid in equity shears by the transferring company accept for fractions shares. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Also known as dynamic measure or trend ratios. This involves the comparison and measurement of financial statements of two or more periods. A) HORIZONTAL ANALYSIS. B) VERTICAL ANALYSIS. Show Answer Correct Answer: A) HORIZONTAL ANALYSIS. 17. Is a tool to help you record the flow of your company's money and examine your financial condition. A) Management System. B) Financial System. C) Accounting System. D) Financial Management System. Show Answer Correct Answer: C) Accounting System. 18. Which of the following is not true of cash budget? A) Cash budgets indicates timing of short term borrowing. B) Cash budget is based on accrual concept. C) Cash budget is based on cash flow concept. D) All of these. Show Answer Correct Answer: B) Cash budget is based on accrual concept. 19. Assets are referred to anything you have or own that has ..... A) Cash value. B) Education. C) Origin. D) Popularity. Show Answer Correct Answer: A) Cash value. 20. This pertains to the overall debt status of the company. It measures the degree of how the firm is financed A) DEBT-UTILIZATION OR LEVERAGE. B) ASSET UTILIZATION OR ACTIVITY. Show Answer Correct Answer: A) DEBT-UTILIZATION OR LEVERAGE. ← 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