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Financial Management

Total questions: 10

Worksheet time: 4mins

Name
Class
Date
1.

The primary goal of financial management is

a)

to maximize the return

b)

to minimize the risk

c)

to maximize wealth of owners

d)

to maximize profit

2.

Capital budgeting related to

a)

long term assets

b)

short term assets

c)

long term assets and short term assets

d)

fixed assets

3.

Dividend decision is concerned with

a)

only distribution of dividend to shareholders

b)

how much to be retained in business

c)

how much profit earned is distributed to shareholders and how much to be retained in the business

d)

none of the above

4.

List the main 3 activities in Statement of Cash Flow

4 lines
5.

A ______________ is a set of documents that outline the essential financial facts about the new venture.

a)

financial forecast

b)

budget

c)

income statement

d)

financial plan

6.

The ___________________ is a report of the revenue, expenses, and net income or net loss over an accounting period.

a)

income statement

b)

accounts payable

c)

owner's equity

d)

financial statement

7.

Cash flows are the money that is available to a business at any given time.

a)

True

b)

False

8.

Owner's equity is the owner's claim to the asset of the business. It is NEVER referred to as the owner's capital in the business.

a)

True

b)

False

9.
a)

Profit Maximization

b)

Cost Reduction

c)

Wealth Maximization

d)

Proper Utilization of Funds

e)

Distribution of Dividend

10.

Identify the formula of dividend policy

a)

Walter Model

b)

MM model

c)

NI Approach

d)

Gordon model