This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 97 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 97 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A "deduction" is A) Money added. B) Money taken out of a paycheck. C) Gross pay. D) Net pay. Show Answer Correct Answer: B) Money taken out of a paycheck. 2. What Is Finance? A) Finance can be defined as the science and art of managing money. B) Finance can be defined as the science and art of managing people. C) Finance can be defined as the science and art of managing customers. D) Finance can be defined as the science and art of managing firm. Show Answer Correct Answer: A) Finance can be defined as the science and art of managing money. 3. Which of the following is NOT a function of a financial manager? A) Financial report. B) Cash flow management. C) Product development. D) Financial risk management. Show Answer Correct Answer: C) Product development. 4. The abbreviation for WTP in the world of Financial Reports is A) Reasonable Without Inspection. B) Reasonable but just barely. C) Reasonable Without Exceptions. D) Reasonable without coercion. Show Answer Correct Answer: C) Reasonable Without Exceptions. 5. Not typically covered by homeowners insurance policies A) Home-based business. B) Product liability insurance. C) Vehicle insurance. D) Business interruption insurance. Show Answer Correct Answer: A) Home-based business. 6. Which of the following is an example of an operating expense for a business? A) Purchase of a new building. B) Salary payments to employees. C) Loan interest payments. D) Dividend payments to shareholders. Show Answer Correct Answer: B) Salary payments to employees. 7. When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that are expected to increase the firms profitability. A) True. B) False. Show Answer Correct Answer: B) False. 8. Money that is subtracted from one's bank account during a purchase is considered A) Loan. B) Income. C) Taxes. D) Debit. Show Answer Correct Answer: D) Debit. 9. High receivable turnover rate does not automatically mean good or efficient collection of the company. A) True. B) False. Show Answer Correct Answer: A) True. 10. A stakeholder is: A) Any person who has voting rights and receive dividends based on stock ownership of a corporation. B) A person who initially founded a firm and currently has management control over that firm. C) A creditor to whom a firm currently owes money. D) None of the above. Show Answer Correct Answer: B) A person who initially founded a firm and currently has management control over that firm. 11. The amount required by law for employers to withhold from earned wages to play taxes. A) State Withholding Tax. B) Federal Withholding Tax. C) FICA. D) OSHA. Show Answer Correct Answer: B) Federal Withholding Tax. 12. This is the total amount of net income the company decides to keep. A) Retained Income. B) Financial Income. C) Management Income. D) Shareholder equity. Show Answer Correct Answer: A) Retained Income. 13. What is a creditor? A) The person that collects your possessions if you don't pay your debt. B) Someone who the loan or debt is owed to. Show Answer Correct Answer: B) Someone who the loan or debt is owed to. 14. According to the traditional approach cost of capital affected by A) Debt-equity mix. B) Debt-capital mix. C) Equity expenses mix. D) Debt-interest mix. Show Answer Correct Answer: A) Debt-equity mix. 15. If customers pay their bills on time they will have A) A higher credit score. B) A lower credit score. C) The same credit score. D) None of above. Show Answer Correct Answer: A) A higher credit score. 16. Investment Decisions involve A) Capital Budgeting Decisions. B) Working Capital Decisions. C) Both of the above. D) None of the above. Show Answer Correct Answer: C) Both of the above. 17. All of the following are variables that can be manipulated to affect monetary policy except- A) Credit restrictions achieved via the banking system. B) Government expenditure on goods and services. C) The volume of money in circulation. D) The rate of interest. Show Answer Correct Answer: B) Government expenditure on goods and services. 18. The more principle (money) you invest the more you will make over the long-term, this is describing the following investment factor: A) Money. B) Time. C) Interest Rate. D) None of above. Show Answer Correct Answer: A) Money. 19. Modern approach focus on ..... A) Wise use of funds. B) Outsiders looking. C) Merger. D) None of these. Show Answer Correct Answer: A) Wise use of funds. 20. What does the R in SMART stand for? A) Readily Available. B) Relevant. C) Redundant. D) Readily Available. Show Answer Correct Answer: B) Relevant. ← 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