FINANCIAL MANAGEMENT EXAMINATION QUESTIONS AND CORRECT ANSWER WITH EXPLANATION GRADED A+ STUDY GUIDE

FINANCIAL MANAGEMENT EXAMINATION QUESTIONS
AND CORRECT ANSWER WITH EXPLANATION GRADED
A+ STUDY GUIDE SOUTHERN NEW HAMPSHIRE
UNIVERSITY
1. Financial management is:
A. Managing courts
B. Planning, organizing, and controlling financial resources
C. Arrest procedures
D. Crime control
Answer: B
Rationale: It deals with managing money and financial resources.

2. The main goal of financial management is to:
A. Increase crime
B. Maximize shareholder wealth
C. Reduce employees
D. Control courts
Answer: B
Rationale: Primary objective is wealth maximization.

3. Finance refers to:
A. Legal systems
B. Management of money and funds
C. Crime activities
D. Court systems
Answer: B
Rationale: Finance is money management.

4. Investment decision involves:
A. Spending money randomly
B. Deciding where to invest funds
C. Court rulings
D. HR decisions
Answer: B
Rationale: Allocation of capital.

,5. Financing decision involves:
A. Where to get funds
B. Crime funding
C. Court funding
D. HR funding
Answer: A
Rationale: Choosing funding sources.

6. Dividend decision is about:
A. Paying employees
B. Distribution of profits to shareholders
C. Crime distribution
D. Court payments
Answer: B
Rationale: Profit sharing decision.

7. Working capital refers to:
A. Fixed assets
B. Day-to-day operational funds
C. Crime money
D. Court funds
Answer: B
Rationale: Short-term liquidity.

8. Fixed capital is:
A. Short-term cash
B. Long-term assets
C. Crime assets
D. Court assets
Answer: B
Rationale: Long-term investment.

9. Financial planning involves:
A. Random spending
B. Forecasting and budgeting finances
C. Crime planning
D. Court planning
Answer: B
Rationale: Future financial control.

, 10. Budget is:
A. Crime record
B. Financial plan for income and expenses
C. Court document
D. HR record
Answer: B
Rationale: Financial plan.

11. Cash flow is:
A. Crime flow
B. Movement of cash in and out of business
C. Court flow
D. HR flow
Answer: B
Rationale: Money movement.

12. Profit is:
A. Expenses
B. Revenue minus costs
C. Crime gain
D. Court fine
Answer: B
Rationale: Financial gain.

13. Loss occurs when:
A. Revenue exceeds costs
B. Costs exceed revenue
C. No business
D. Court action
Answer: B
Rationale: Negative profit.

14. Revenue is:
A. Expenses
B. Total income from sales
C. Crime money
D. Court money
Answer: B
Rationale: Income from business.