Financial management quiz mcqs

If you want to join the esteemed ranks of the Pakistan Armed Forces as a Financial Management professional through Lady Cadet Course, PMA Long Course, Supply Officer in Pak Navy or Logistics Officers in Pakistan Air Force then, it’s crucial to equip yourself with the knowledge and strategies necessary to excel in the rigorous selection process. 

This comprehensive guide will provide you with a roadmap to success, outlining the essential aspects of test preparation for the Financial Management MCQs for initial tests of the Army, Navy, and Air Force.

Financial Management Quiz with Answers Online

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Financial Management Quiz

Which is a risk factor in capital budgeting:-

Commercial paper are generally issued at a pries:-

Inventory turnover measure the relationship of inventory with;-

Which is not relevant for dividend payment for a year:-

Relationship between change in sale and change m is measured by;-

In case of partially debt financed firm, K0 is less:-

______________ synergy refers to increase in the value of the firm that occurs in the combined firm from financial factors:-

In case the firm is all equity financed, WACC would be equal to:-

The term capital structure denotes:-

Financial Break even level of EBIT is one in which:-

In order to calculate the proportion of the equity financing used by the company, the following should be used:-

In case of net income approach, when the debt proportion is increased , the cost of debt is:-

 In capital budgeting Opportunity costs are excluded:-

In factoring Factor provides cost free finance to seller:-

What is economic order quantity:-

Capital Budgeting Decisions are based on;-

If a cash discount is offered to customer , then which would increase:-

Relaxed credit implies- credit to customers:-

Cash inflows from  a project include:-

Which is not included in Incremental A flows:-

Between two capital plans, if expected EBIT is more than indifference level of EBIT, then:-

Which one is not an objective of cash management:-

Which one is liability of bank:-

Evaluation of capital budgeting proposal is based on the cash flow because:-

Which does not effect cash flows Proposal:-

Financial Management Quiz Tests

  1. The primary goal of financial management is to maximize __________ for shareholders. Answer: shareholder wealth

  2. A company’s financial health can be assessed using key financial __________ such as liquidity and solvency ratios. Answer: ratios

  3. Working capital is calculated as ____________ minus current liabilities. Answer: current assets

  4. The time value of money concept emphasizes that a dollar received today is worth more than a dollar __________. Answer: in the future

  5. The process of estimating future cash flows and discounting them to their present value is known as ____________. Answer: discounted cash flow (DCF) analysis

  6. Financial leverage measures the use of __________ to increase the return on equity. Answer: debt

  7. Risk and return are positively correlated, meaning that higher potential returns typically come with higher levels of __________. Answer: risk

  8. The financial statement that provides a snapshot of a company’s financial position at a specific point in time is the ____________. Answer: balance sheet

  9. The formula for the quick ratio is (Current Assets – ____________)/Current Liabilities. Answer: inventory

  10. In financial management, the concept of diversification is used to reduce _____________. Answer: risk

  11. The Capital Asset Pricing Model (CAPM) helps in estimating the expected ____________ of an investment. Answer: return

  12. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a measure of a company’s ____________. Answer: operating performance

  13. The process of comparing a company’s financial performance to industry benchmarks is known as ____________ analysis. Answer: ratio

  14. Financial markets where new securities are issued to the public for the first time are known as ____________ markets. Answer: primary

  15. A financial instrument that represents ownership in a company and entitles the holder to a share of the company’s profits is called a ____________. Answer: stock

  16. The formula for the debt-to-equity ratio is Total Debt/ ____________. Answer: Total Equity

  17. Net present value (NPV) is a technique used in capital budgeting to evaluate the profitability of an investment by comparing the present value of cash inflows to the present value of ____________. Answer: cash outflows

  18. Financial planning involves setting ____________ goals and developing strategies to achieve them. Answer: financial

  19. In financial management, the term “Liquidity” refers to the ability of a company to convert its assets into ____________ quickly. Answer: cash

  20. The process of regularly reviewing and adjusting a financial plan to ensure it aligns with the changing goals and circumstances is known as financial ____________. Answer: monitoring

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