Quiz  /  Financial Management Gate & PSU MCQ Questions With Answers

  • 1. 
    Worldwide trade is

  • Buying goods from abroad
  • Selling goods to abroad
  • Paying foreign currency
  • All of above

  • 2. 
    Which financial decision help a businessman in opening a new branch of its business.

  • Financing decision
  • Dividend decision
  • Investment decision
  • None of the above

  • 3. 
    The objective of wealth maximization takes into account

  • Amount of returns expected
  • Timing of anticipated returns
  • Risk associated with uncertainty of returns
  • All of the above

  • 4. 
    We multiply foreign revenue with rate with respect to that country is

  • Spot rate
  • Forward rate
  • Cash flows
  • Portfolio investments

  • 5. 
    These are activities related in the generation of the principal revenue of the firm

  • Investing Activities
  • Financing Activities
  • Operating Activities
  • All of the above

  • 6. 
    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.

  • True
  • False

  • 7. 
    This is the last component of Shareholder's Equity

  • Share Capital
  • Reserves
  • Retained Earnings
  • Additional Paid-In Capital

  • 8. 
    Compute the EPS based on the given data below:Shares Outstanding - 100, 000Year-end Net income - 750,000

  • 7 per share
  • 7.50 per share
  • 6 per share
  • 5 per share

  • 9. 
    Mainly general type of Direct Foreign Investment (DFI) is

  • Franchising
  • Patent
  • International trade
  • The establishment of new subsidiaries

  • 10. 
    Financial Managers are often task to trade the equity securities of the firm in the financial market. What particular activity is this?

  • Forecasting & Planning
  • Making Crucial Investment & Financing Decisions
  • Coordinating & Controlling
  • Trading in Financial Markets

  • 11. 
    The summary of the operating, investing and financing activities of the firm is presented in the?

  • Statement of Financial Position
  • Statement of Retained Earnings
  • Statement of Comprehensive Income
  • Statement of Cash Flows

  • 12. 
    It is considered to be the expansive goal of the firm.

  • Valuation Approach
  • Maximization of Shareholder's Wealth
  • Social Responsibility
  • Ethical Behavior

  • 13. 
    What is the formula for Earnings per share (EPS)?

  • Net Income/Ordinary Shares
  • Net Profit/Shares
  • Net Income/Shares
  • Net Income/Shares Oustanding

  • 14. 
    A ______________ is a set of documents that outline the essential financial facts about the new venture.

  • financial forecast
  • budget
  • income statement
  • financial plan

  • 15. 
    It consists of recognized gains and losses that are not included in the income statement but are found in the equity section

  • Income Statement
  • Statement of Changes in Equity
  • Comprehensive Income
  • Statement of Financial Position

  • 16. 
    ______________ is money supplied by investors, banks, or owners of a business.

  • Equity
  • Capital
  • Income statement
  • Property

  • 17. 
    Which does not belong to the group?

  • Property, Plant and Equipment
  • Accounts Receivable
  • Inventory
  • Prepaid Expenses

  • 18. 
    The ___________________ is a report of the revenue, expenses, and net income or net loss over an accounting period.

  • income statement
  • accounts payable
  • owner's equity
  • financial statement

  • 19. 
    This considered as the oldest, most common, and simplest form of business organization.

  • Sole Ownership
  • Partnership
  • Sole Proprietorship
  • Corporation

  • 20. 
    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.

  • Consumer
  • Seller
  • Capital
  • Demand

  • 21. 
    Which is not a major decision in Financial Management

  • Investment Decision
  • Operations Decision
  • Financing Decision
  • Dividend Decision

  • 22. 
    This statement presents the result of the firm's operation or performance for a given time

  • Statement of Financial Position
  • Income Statement
  • Statement of Comprehensive Income
  • Statement of Changes in Equity
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