This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 96 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 96 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following actions will DECREASE the present value of an investment? A) Decrease the interest rate. B) Decrease the future value. C) Decrease the amount of time. D) All of the above will decrease the present value. Show Answer Correct Answer: B) Decrease the future value. 2. Worldwide trade is A) Buying goods from abroad. B) Selling goods to abroad. C) Paying foreign currency. D) All of above. Show Answer Correct Answer: D) All of above. 3. What is emergency savings? A) Transferring money into your savings before you pay your bills. B) Original amount of money saved or invested. C) Cash set aside to cover the cost of unexpected events. D) Maximizing your return by selling stocks at a higher price than what you paid for. Show Answer Correct Answer: C) Cash set aside to cover the cost of unexpected events. 4. If for the next 40 years you place $ 3, 000 in equal year-end-deposits into an account earning 8% per year, how much money will be in the account at the end of that time period? A) $ 777, 189.56. B) $ 777, 159.56. C) $ 777, 179.56. D) $ 777, 169.56. Show Answer Correct Answer: D) $ 777, 169.56. 5. What can be done to manage savings effectively, according to the tips listed? A) Ignoring long-term savings. B) Withdraw all savings for investment. C) Manage savings allocation for immediate and future needs. D) Not monitoring savings balances regularly. Show Answer Correct Answer: C) Manage savings allocation for immediate and future needs. 6. IF RETURN ON INVESTMENT IS MORE THAN RATE OF INTEREST ..... IS FAVOURABLE A) DEBT. B) EQUITY. C) BOTH. D) NONE. Show Answer Correct Answer: A) DEBT. 7. The percentage deducted from an individual's paycheck to assist in funding government agencies within the state. A) Federal Withholding Tax. B) Debits. C) State Withholding Tax. D) Interest. Show Answer Correct Answer: C) State Withholding Tax. 8. Short term or current assets Decisions are known as: A) Short term investment decisions. B) Working capital decisions. C) Both. D) None. Show Answer Correct Answer: C) Both. 9. The users that look for signals from management are: A) Signalling theory. B) Traditonal Approach. C) Agency theory. D) None. Show Answer Correct Answer: A) Signalling theory. 10. MM approach adds behavioral justification to NOI approach through ..... A) Personal Leverage. B) Corporate Leverage. C) Financial Leverage. D) Operation Leverage. Show Answer Correct Answer: A) Personal Leverage. 11. Bond by the name of the owner of the issuing company is? A) Debenture. B) Mortgage. C) Convertible. D) Registered. Show Answer Correct Answer: D) Registered. 12. Financing decisions is related to A) Capital structure. B) Purchasing of fixed assets. C) Dividend distribution. D) Maintenance of accounts. Show Answer Correct Answer: C) Dividend distribution. 13. Deficit is A) Positive cash flow. B) Negative cash flow. Show Answer Correct Answer: B) Negative cash flow. 14. Functions of managerial finance are A) Planning for investments. B) Raising of funds. C) Working capital decisions. D) All the above. Show Answer Correct Answer: D) All the above. 15. Which type of income is the income after taxes are taken out? A) Gross income. B) Net income. C) Accounted income. D) Taxable Income. E) Generated Income. Show Answer Correct Answer: B) Net income. 16. The ..... offers free file software for individuals who have an income below $ 62, 000. A) Schools. B) IRS. C) Employer. D) None of above. Show Answer Correct Answer: B) IRS. 17. Which of the following actions is LEAST likely to increase shareholder wealth? A) The weighted average cost of capital is decreased by a recent financing decision. B) The financial rewards of directors are linked to increasing earnings per share. C) The board of directors decides to invest in a project with a positive NPV. D) The annual report declares full compliance with the corporate governance code. Show Answer Correct Answer: B) The financial rewards of directors are linked to increasing earnings per share. 18. Refers to the traditional and narrow approach, which aims to maximize the profit of the concern. A) Profit Minimization. B) Wealth Maximization. C) Profit Maximization. D) Wealth Minimization. Show Answer Correct Answer: C) Profit Maximization. 19. Assume a profitable firm has neither issued nor repurchased any shares of its common stock, nor has it ever paid dividends. If the book value of the firm's stockholders' equity has increased, it follows that the: A) Firm's earnings per share has increased. B) Market value of the firm's buildings has increased. C) Market value of the firm's long-term debt has decreased. D) None of above. Show Answer Correct Answer: A) Firm's earnings per share has increased. 20. Financial management process deals with A) Investments. B) Financing decisions. C) Both a and b. D) None of the above. Show Answer Correct Answer: B) Financing decisions. ← 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