Financial Management Test

Result

Financial Management Test - 9

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Financial Management is concerned with

A
Investment decisions

B
Financing decisions

C
Dividend decisions

D
All of above
Solution
Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current assets are also a part of investment decisions called as working capital decisions.
Financial decisions - They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby.
Dividend decision - The finance manager has to take decision with regards to the net profit distribution. Net profits are generally divided into two:
Dividend for shareholders- Dividend and the rate of it has to be decided.
Retained profits- Amount of retained profits has to be finalized which will depend upon expansion and diversification plans of the enterprise.
Question 2
1 / -0

_________ plan of action prepared under financial planning reduces waste, duplication of efforts, and gaps in planning.

A
Detailed

B
Short

C
General

D
Basic

Solution

Financial plan is a comprehensive evaluation of an individual's current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans.
Therefore detailed plan of action is prepared under financial planning reduce waste, duplication of efforts, and gaps in planning.
Question 3
1 / -0

Financial planning tries to link the ______ with the ______.

A
Future, present

B
Present, past

C
Present, future

D
Past, future

Solution

Financial Planning is the process of estimating the capital required and determining it’s competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise. Financial planning relates present financial requirement with future requirement by anticipating the sales and growth plans of the company.
Question 4
1 / -0

Which of the following factors affect requirement of working capital?

A
Scale of Operations

B
Credit Allowed

C
Production Cycle

D
All of the above
Solution
Main factors affecting the working capital are as follows:
(1) Nature of Business:
(2) Scale of Operations:
(3) Business Cycle:
(4) Seasonal Factors:
(5) Production Cycle:
(6) Credit Allowed:
(7) Credit Availed:
(8) Operating Efficiency
Question 5
1 / -0

Plans made for a period of _____ year or less is termed as budget.

A
one

B
two

C
three

D
four

Solution

A budget is a financial plan for a defined period of time, usually a year.
A budget is the sum of money allocated for a particular purpose and the summary of intended expenditures along with proposals for how to meet them. It may include a budget surplus, providing money for use at a future time, or a deficit in which expenses exceed income.

Question 6

1 / -0

If the raw materials and other required materials are available freely and continuously, ____ stock levels may suffice.

lower

higher

constant

fluctuating

Solution

Keeping lots of stock.

This might suit your business if sales are difficult to predict (and it is hard to pin down how much stock you need and when), if firm can store plenty of stock at less cost, the components or materials you buy are unlikely to go through rapid developments or they take a long time to re-order.

The efficient stock control allows you to have the right amount of stock in the right place at the right time. It ensures that capital is not tied up unnecessarily, and protects production if problems arise with the supply chain.

Advantages	Disadvantages
Easy to manage	Higher storage and insurance costs
Low management costs	Certain goods might perish
You never run out of stock	Stock may become obsolete before it is used
Buying in bulk may be cheaper	Your capital is tied up

Question 7
1 / -0

Financial planning helps in coordinating _________ business functions.

A
one

B
two

C
various

D
three

Solution

Financial planning is an important part of overall planning of any business enterprise. It aims at enabling the company to tackle the uncertainty in respect of the availability and timing of the funds and helps in smooth functioning of an organisation.
Question 8
1 / -0

Which of the following refers to those industries which require huge infrastructure, man power and have influx of capital assets?

A
Large scale industries

B
Small scale industries

C
Both (A) and (B)

D
(A) or (B)

Solution

Large scale industries operate on a huge quantity of products and services. Therefore large scale industries require huge infrastructure like plants and machinery, human resource for daily working of these activities and huge amount of capital assets for the smooth flow of business activities.
Question 9
1 / -0

Higher level of competitiveness _____ the working capital requirement.

A
increases

B
decreases

C
does not influence

D
none of the above

Solution

If the industry is competitive, quick response to customer needs is compulsory and therefore a higher level of inventory is maintained. Liberal credit terms are also mandatory with good service to survive in the market. So, higher the competition, higher would be the requirement of working capital.
Question 10
1 / -0

Working capital requirement is _______ in firms with longer processing cycle and ______ in firms with shorter processing cycle.

A
lower; lower

B
lower; higher

C
higher; lower

D
higher; higher

Solution

The production cycle time refers to the time required for converting the raw materials into finished goods. Higher, this time, higher would be the time of blocking funds in the working capital.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Financial Management Test - 9

Result

Financial Management Test - 9

Score

-

Rank

-

SHARING IS CARING

Question 1

Investment decisions

Financing decisions

Dividend decisions

All of above

Solution

Question 2

Detailed

Short

General

Basic

Solution

Question 3

Future, present

Present, past

Present, future

Past, future

Solution

Question 4

Scale of Operations

Credit Allowed

Production Cycle

All of the above

Solution

Question 5

one

two

three

four

Solution

Question 6

lower

higher

constant

fluctuating

Solution

Question 7

one

two

various

three

Solution

Question 8

Large scale industries

Small scale industries

Both (A) and (B)

(A) or (B)

Solution

Question 9

increases

decreases

does not influence

none of the above

Solution

Question 10

lower; lower

lower; higher

higher; lower

higher; higher

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.