This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 98 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 98 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which from the below are the avenues of Savings and Investment?i. Pension schemesii. Unit Trust of Indiaiii. Premiumsiv. Funds A) Option i, ii. B) Option ii, iii. C) Option iii, iv. D) Option iv, i. Show Answer Correct Answer: A) Option i, ii. 2. The type of preference share which is eligible for arrears of dividend A) Participating. B) Cumulative. C) Redeemable. D) Convertible. Show Answer Correct Answer: B) Cumulative. 3. Net pay is the pay you receive each pay period A) Before any deductions. B) After all taxes and deductions. C) After retirement only is deducted. D) None of above. Show Answer Correct Answer: B) After all taxes and deductions. 4. Insolvency happens when ..... A) The firm cannot meet its current obligations fast enough. B) The firm cannot meet its non-current obligations fast enough. C) The firm can meet its current obligations fast enough. D) The firm can meet its non-current obligations fast enough. Show Answer Correct Answer: A) The firm cannot meet its current obligations fast enough. 5. Which government agency is responsible for collecting federal income taxes? A) NC Department of Revenue. B) Internal Revenue (IRS). C) NC Department of Finance. D) Federal Bureau of Investigation. Show Answer Correct Answer: B) Internal Revenue (IRS). 6. ..... is wealth in the form of money or other assets owned by a person or organization, available for a particular purpose such as starting a company or investing. A) Consumer. B) Seller. C) Capital. D) Demand. Show Answer Correct Answer: C) Capital. 7. The ..... model is usually considered the best of the capital budgeting decision-making models. A) Internal rate of return (IRR). B) Net past value (NPV). C) Profitability index (PI). D) Net present value (NPV). Show Answer Correct Answer: D) Net present value (NPV). 8. Books are on sale for $ 30 for 3 books. Calculate the unit price (per book) A) $ 10. B) $ 30. C) $ 90. D) None of above. Show Answer Correct Answer: A) $ 10. 9. What is NOT another name for a service fee with credit A) Administrative fee. B) Management fee. C) Handling fee. D) Annual fee. E) Adjustment fee. Show Answer Correct Answer: E) Adjustment fee. 10. The interaction process between a guest and a host happens at the guest's home. A) True. B) False. Show Answer Correct Answer: B) False. 11. What field of study is financial management associated with? A) Accounting. B) Economics. C) Engineering. D) Mathematics. Show Answer Correct Answer: A) Accounting. 12. Advances received is an example of A) Current asset. B) Current liability. C) More of current asset less of current liability. D) Less of current asset more of current liability. Show Answer Correct Answer: B) Current liability. 13. Non cash expenses are taken into consideration in A) Accounting profit. B) Sunk cost. C) Working capital. D) Cash flows. Show Answer Correct Answer: D) Cash flows. 14. What is the present value of Rs. 5, 00, 000 to be received after 5 years assuming 10 % interest rate?( DF-.621) A) 2, 35, 500. B) 3, 10, 500. C) 3, 15, 000. D) 3, 50, 500. Show Answer Correct Answer: B) 3, 10, 500. 15. Key principles that financial managers use when making business decisions include A) Time value of money. B) Tradeoff between return and risk. C) Cash. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. A decision to acquire a new and modern plant to upgrade an old one is A) Investments decision. B) Financing decision. C) Dividend Decision. D) Working Capital decision. Show Answer Correct Answer: A) Investments decision. 17. Which financial goal in financial management is associated with increasing the net worth of the shareholders? A) Profit Maximization. B) Revenue Maximization. C) Wealth Maximization. D) Market Share Maximization. Show Answer Correct Answer: C) Wealth Maximization. 18. The non discounting method that ignores the fact that profit can be reinvested A) Urgency. B) Pay back period. C) Average rate of return. D) None of above. Show Answer Correct Answer: C) Average rate of return. 19. The finance manager has to take decision with regards to the net profit distribution. A) Dividend Decision. B) Financial Decision. Show Answer Correct Answer: A) Dividend Decision. 20. Serenity, Elleanna, and Devon are discussing the concept of compound interest in financial management. Emma believes that compound interest is calculated on the initial principal, which also includes all of the accumulated interest from previous periods. Noah, on the other hand, thinks that compound interest is calculated only on the initial principal. According to the principles of financial management, who is correct? A) Serenity:Compound interest is not a concept in financial management. B) Elleanna:Compound interest is calculated on the initial principal, which also includes all of the accumulated interest from previous periods. C) Devon:Compound interest is calculated only on the initial principal. D) None of them are correct. Show Answer Correct Answer: B) Elleanna:Compound interest is calculated on the initial principal, which also includes all of the accumulated interest from previous periods. ← 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