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Financial Management

Total questions: 10

Worksheet time: 24mins

Name
Class
Date
1.

Finance functions are

a)

Planning for funds

b)

Raising of funds

c)

Allocation of funds

d)

All of the above

2.
Which financial decision help a businessman in opening a new branch of its business. 
a)
Financing decision
b)
Dividend decision
c)
Investment decision
d)
None of the above
3.

Why is evaluating Capital Budgeting decisions based on cash flows?

a)
  1. Cash is more important for an organisation than profits

b)
  1. Cash flows are much easier to calculate compared to profits

c)
  1. Both a and b are incorrect

d)
  1. Both a and b are correct


4.
The objective of wealth maximization takes into account
a)
Amount of returns expected
b)
Timing of anticipated returns
c)
Risk associated with uncertainty of returns
d)
All of the above
5.

Wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.

a)

Consumer

b)

Seller

c)

Capital

d)

Demand

6.

Which of the following principles is not considered within capital budgeting for a company?

a)
  1. Post-tax principle

b)
  1. Accrual principle

c)
  1. Cash flows principle

d)
  1. None of the above

7.

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

8.

Which of the following decisions affects the size of assets, the profitability and competitiveness of a firm?

a)
  1. Dividend decision

b)
  1. Working capital decision

c)
  1. Capital Budgeting decision

d)
  1. None of the above

9.

A _____________________ is a report of the balances in all assets, liability, and owner's equity accounts at the end of a accounting period

a)

statement of cash flows

b)

balance sheet

c)

income statement

d)

financial statement

10.

______________ is money supplied by investors, banks, or owners of a business.

a)

Equity

b)

Capital

c)

Income statement

d)

Property