123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100 FINANCIAL MANAGEMENT You are welcome to Lakewood Business School Examination Portal We are delighted to have you here and wish you the very best as you embark on an exciting journey toward a rewarding career with us. Online Examinations Our online assessments are designed to evaluate your understanding of the training materials and ensure your readiness for the next step in your professional development. Here's what you need to know: Format: The assessment consists of 100 multiple-choice questions. Pass Mark: A minimum score of 50% is required to pass. Instant Results: Your answers will be automatically graded, allowing you to immediately see your results. Retake Option: If you don’t pass on your first attempt, don’t worry! You can retake the exam and try again. Need Assistance? Whether you are currently enrolled on our platform or seeking information, our dedicated support team is here to help. Feel free to reach out to us with any inquiries at admission@lwbschool.org.uk Thank you for choosing Lakewood Business School. We are committed to supporting your growth and success. 1 / 100 1. When a company buys back its own shares, it's called: A. Stock-splitting D. Reverse IPO C. Share repurchase B. Equity dilution 2 / 100 2. An unfavorable variance in budgeting means: B. Budget was not approved C. Actual cost exceeds budgeted cost A. Cost is below budget D. Profit has increased 3 / 100 3. Financial benchmarking involves: A. Estimating wages B. Comparing with previous financial years D. Calculating profit margin C. Comparing performance with industry standards 4 / 100 4. One disadvantage of debt financing is: A. Dilution of ownership C. Mandatory interest payments B. High employee turnover D. Reduced control 5 / 100 5. A financial benchmark index is used to: B. Compare a fund’s performance against the market A. Count inventory D. Rate company logos C. Audit taxes 6 / 100 6. The time value of money means: A. Money loses value due to inflation D. Only future value matters B. A naira today is worth more than a naira tomorrow C. Taxes reduce cash value 7 / 100 7. What is the main goal of financial statement analysis? A. To avoid tax audits D. To reduce the number of transactions C. To evaluate financial health and performance B. To track employee hours 8 / 100 8. Dividend payout ratio is calculated as: C. Net income ÷ Dividends B. Dividends ÷ Net income A. Earnings ÷ Share price D. Equity ÷ Dividends 9 / 100 9. Which is a limitation of financial statements? A. Historical in nature C. Prepared using Excel D. Includes all company records B. Audited annually 10 / 100 10. Compound interest is: A. Interest paid on principal only D. Monthly deductions C. Interest calculated on both principal and accumulated interest B. Repeated interest penalties 11 / 100 11. What is depreciation? B. Non-cash expense to allocate cost of tangible assets C. Revenue loss D. Cash paid to vendors A. Increase in asset value 12 / 100 12. What does a gearing ratio measure? B. Cost per unit C. Debt relative to equity A. Marketing reach D. Tax-to-income 13 / 100 13. The purpose of a trial balance is to: B. Test the equality of total debits and credits A. Forecast revenue C. Set sales targets D. Predict taxes 14 / 100 14. The cost of capital represents: B. Tax rate D. Gross margin A. Operating expense C. Minimum required return for investors 15 / 100 15. GAAP stands for: B. Generally Accepted Accounting Principles A. General Access Accounting Platform C. Governmental Audit & Assurance Practice D. General Accounting Accuracy Policy 16 / 100 16. Vertical integration affects financial planning because: D. It improves branding B. It adds business layers and capital needs C. It reduces cash flow A. It increases product sales 17 / 100 17. The primary objective of portfolio diversification is to: B. Maximize leverage A. Increase taxes C. Minimize investment risk D. Guarantee dividends 18 / 100 18. What is a financial covenant? B. Clause in a loan agreement restricting borrower’s actions C. Dividend reinvestment plan D. Audit penalty A. Profit-sharing agreement 19 / 100 19. Profitability ratios assess: C. Company’s ability to generate earnings D. Dividend ratio B. Expense quality A. Capital cost 20 / 100 20. A treasury function manages: D. Asset depreciation C. Cash, liquidity, and risk A. Office equipment B. Branding strategy 21 / 100 21. A callable bond gives the issuer the right to: A. Convert it to equity B. Redeem before maturity D. Increase coupon rate C. Cancel dividend payments 22 / 100 22. Which of the following is an example of a non-operating expense? B. Utility bills D. Raw materials cost C. Loss on sale of equipment A. Rent 23 / 100 23. Which one is NOT a financial statement? C. General Ledger A. Balance Sheet B. Income Statement D. Cash Flow Statement 24 / 100 24. Which of the following is a key function of financial management? C. Capital budgeting D. Market segmentation B. Inventory auditing A. Recruitment planning 25 / 100 25. The internal rate of return (IRR) is the discount rate at which: B. Payback is lowest A. NPV is highest C. NPV is zero D. Cost equals equity 26 / 100 26. A company with more debt than equity is said to be: D. Liquid A. leveraged C. Over-capitalized Highly B. Under-leveraged 27 / 100 27. Debt-to-equity ratio is used to assess: D. Sales performance A. Leverage and financial risk B. Profitability C. Inventory flow 28 / 100 28. Market risk is also referred to as: D. Operational risk C. Systematic risk B. Unsystematic risk A. Residual risk 29 / 100 29. Which of these is a method of capital budgeting? D. FIFO A. TCO C. SWOT B. Payback period 30 / 100 30. A low quick ratio could indicate: C. Poor short-term liquidity A. Strong profitability D. Positive working capital B. High inventory risk 31 / 100 31. A financial controller is responsible for: C. Managing internal financial operations and reports A. Auditing competitors B. Sales training D. Reviewing legal documents 32 / 100 32. What is a sunk cost? B. A cost expected in the future D. A cost adjusted for inflation A. A cost already incurred and not recoverable C. A cost related to salaries 33 / 100 33. Which ratio measures a company’s ability to meet short-term obligations? B. Asset turnover A. Profit margin C. Current ratio D. Return on equity 34 / 100 34. Management accounting provides data for: B. Auditors C. Internal decision-makers D. Credit rating agencies A. External users 35 / 100 35. Which activity is classified under investing in the cash flow statement? A. Payment of dividends C. Purchase of fixed assets D. Increase in salaries B. Repayment of loans 36 / 100 36. Working capital management involves decisions about: C. Employee training B. Short-term assets and liabilities D. Product design A. Long-term investments 37 / 100 37. Inflation affects financial management because: B. It decreases cost of borrowing A. It increases employee motivation D. It boosts dividends C. It reduces the purchasing power of money 38 / 100 38. What is the purpose of a financial feasibility study? D. File company registration C. Report HR outcomes A. Draft an employee handbook B. Evaluate the economic viability of a project 39 / 100 39. Book value of an asset is: A. Market value D. Selling price B. Tax refund C. Asset value recorded in the accounting books 40 / 100 40. What is the primary purpose of a financial controller? D. Supervise customer service B. Manage day-to-day HR A. Conduct field audits C. Oversee financial reporting and internal controls 41 / 100 41. A higher debt ratio implies: D. Higher net income C. Greater financial risk B. More equity A. Strong liquidity 42 / 100 42. Inventory turnover is calculated as: C. Cost of Goods Sold ÷ Average Inventory D. Gross Profit ÷ Average Inventory B. Sales ÷ Total Assets A. Inventory ÷ Net Sales 43 / 100 43. What does the acid-test ratio exclude from current assets? A. Receivables B. Cash D. Marketable securities C. Inventory 44 / 100 44. A budget is defined as: C. A financial plan for future income and expenditure A. A list of assets D. The amount paid to shareholders B. A short-term investment plan 45 / 100 45. Dividend yield is calculated as: B. Dividend per share ÷ market price per share C. Market price ÷ earnings A. Net income ÷ dividend D. Profit ÷ tax 46 / 100 46. An annuity is: B. A type of loan D. A sales return C. A series of equal payments made at regular intervals A. A single payment 47 / 100 47. The primary purpose of cost accounting is to: B. Identify and control costs of operations A. Increase product prices D. Handle vendor queries C. Process payroll 48 / 100 48. Time value of money assumes: C. Inflation doesn’t exist D. Discounting is not needed A. All money loses value B. Earlier cash flows are more valuable than future ones 49 / 100 49. Which document shows a company’s financial performance over time? A. Balance sheet D. Ledger B. Bank statement C. Income statement 50 / 100 50. Preferred stock typically offers: B. Fixed dividends and priority over common stock D. Non-transferability C. High capital gains A. Voting rights only 51 / 100 51. The DuPont analysis helps break down: A. Liquidity ratios B. Market share C. Return on Equity D. Supplier contracts 52 / 100 52. Which financial statement shows a company’s financial position at a specific date? A. Income statement D. Balance sheet C. Budget report B. Cash flow statement 53 / 100 53. The weighted average cost of capital (WACC) represents: D. Payroll plus dividends B. Cost of operations A. Cost of debt only C. Average return required by all capital providers 54 / 100 54. Capital structure decisions affect: B. Recruitment plans A. Sales forecasting D. Product pricing C. Debt-equity balance of financing 55 / 100 55. Bookkeeping is concerned with: B. Recording day-to-day transactions D. Tax computation A. Complex investment strategy C. Audit reports 56 / 100 56. Which document shows cash inflows and outflows? B. Statement of changes in equity C. Cash flow statement A. Balance sheet D. Profit and loss statement 57 / 100 57. The operating cycle of a business includes: B. Time between purchase of inventory and cash collection from sales A. Issuing shares C. Employee evaluations D. Cash reserve planning 58 / 100 58. Which of the following is not a financing activity? C. Paying dividends A. Issuing stock D. Buying raw material B. Borrowing from a bank 59 / 100 59. Retained earnings represent: C. Amount owed to vendors A. Loan repayment D. Dividends paid B. Profits reinvested into the business 60 / 100 60. What does a high P/E ratio suggest? A. Weak earnings B. Market overvaluation C. Investors expect high growth D. Low stock demand 61 / 100 61. Horizontal analysis compares: D. Physical assets B. Past and present values over time C. Cash flows only A. Data across multiple companies 62 / 100 62. The current ratio formula is: A. Current liabilities / Total equity C. Current assets / Current liabilities D. Current revenue / Current cost B. Net assets / Current liabilities 63 / 100 63. Which is NOT a source of long-term financing? D. Debentures B. Equity C. Commercial paper A. Bonds 64 / 100 64. Discounted cash flow (DCF) is used to: A. Determine tax liability C. Evaluate investment using present value of future cash flows D. Record invoices B. Forecast employee cost 65 / 100 65. In capital structure, equity financing involves: A. Bank loans C. Government grants D. Inventory turnover B. Shareholder contributions 66 / 100 66. What is the formula for gross profit? D. Net income – Dividends B. Sales – Cost of Goods Sold A. Revenue – Operating Expenses C. Sales – Tax 67 / 100 67. EBIT stands for: C. Excess Before Internal Transactions D. Equity Before Internal Transfers A. Earnings Before Income and Taxes B. Earnings Before Interest and Taxes 68 / 100 68. The main objective of internal controls is to: D. Forecast depreciation A. Increase equity B. Prevent errors and fraud C. Approve salaries 69 / 100 69. If the NPV of a project is negative, the project should be: C. Accepted B. Deferred A. Prioritized D. Rejected 70 / 100 70. What is financial forecasting? D. Measuring employee turnover A. Estimating past expenses B. Predicting tax rates C. Projecting future financial outcomes 71 / 100 71. What is a budget variance? A. The difference between forecast and actual results C. Amount paid to suppliers D. Rebate from taxes B. The time a budget is created 72 / 100 72. Cash flow from operating activities includes: B. Dividends paid A. Loan repayments D. Purchase of machinery C. Product sales revenue 73 / 100 73. Financial planning primarily focuses on: A. Hiring strategy D. Setting employee KPIs B. Sales forecasting C. Determining how much funding is needed and when 74 / 100 74. A company is insolvent when: B. It earns no profit D. Its staff turnover is high A. It has no debts C. Its liabilities exceed its assets 75 / 100 75. Liquidity ratios measure: A. Net profit C. Short-term financial stability D. Dividend payout B. Cash reserves 76 / 100 76. A financial covenant in a loan agreement restricts: B. Staff bonus sharing C. Certain financial decisions by the borrower D. Interest on inventory A. Customer acquisition 77 / 100 77. A callable bond allows: C. Inflation-proof returns B. Tax exemption A. The issuer to repay before maturity D. Unlimited dividends 78 / 100 78. An overdraft facility is: C. Dividend payment D. Asset write-off A. Investment income B. Short-term borrowing from a bank 79 / 100 79. What does the term 'leverage' refer to in finance? B. Asset revaluation C. Use of debt to finance assets A. Sales incentives D. Employee performance 80 / 100 80. One advantage of leasing over purchasing an asset is: A. Full ownership D. Depreciation is avoided C. Tax increment B. Lower initial capital outlay 81 / 100 81. What is a common goal of financial management? A. Maintaining employee files D. Avoiding taxes C. Reducing production B. Maximizing profits responsibly 82 / 100 82. What is the primary purpose of financial ratios? B. Audit employee performance D. Pay bonuses A. Increase revenue C. Analyze financial health 83 / 100 83. A favorable budget variance indicates: B. Underperformance C. Costs were higher than planned A. Overspending D. Costs were lower than expected 84 / 100 84. What is float in cash management? B. Net revenue D. Lost revenue C. Time difference between cash disbursement and actual withdrawal A. Extra expenses 85 / 100 85. What does the term 'amortization' usually apply to? A. Physical assets D. Current assets B. Tangible assets C. Intangible assets 86 / 100 86. Free cash flow is the cash: C. Saved from VAT B. Left after capital expenditures and operations D. Received from financing A. Paid to employees 87 / 100 87. A contingency reserve is created to: A. Buy assets C. Issue dividends B. Cover potential unexpected costs D. Adjust net sales 88 / 100 88. Financial intermediaries include: A. Suppliers and manufacturers D. HR managers C. Banks, insurance companies, and mutual funds B. Wholesalers and agents 89 / 100 89. Scenario analysis is used to: A. Avoid planning D. Adjust invoices C. Track audit trails B. Prepare for multiple financial outcomes 90 / 100 90. What does the term “beta” measure in finance? D. Dividend return B. Interest rate A. Inflation risk C. A stock’s volatility relative to the market 91 / 100 91. The breakeven point occurs when: D. Sales double A. Profit is maximized B. Fixed costs are zero C. Total revenue equals total cost 92 / 100 92. The primary focus of treasury management is: D. Supplier logistics B. Investment analysis A. Human capital C. Cash, liquidity, and risk management 93 / 100 93. Financial accounting is primarily intended for: D. HR and Admin C. External stakeholders B. Government only A. Internal management 94 / 100 94. A company’s financial year refers to: A. Any month’s revenue C. Revenue projections D. Fixed tax base B. 12-month accounting period 95 / 100 95. The matching principle in accounting ensures: B. Revenues and related expenses are recorded in the same period C. Assets equal liabilities D. Cash is recorded immediately A. All sales are recorded when received 96 / 100 96. What is the primary benefit of budgeting? C. Effective resource allocation and control A. Tax deduction B. Meeting legal standards D. Profit sharing 97 / 100 97. The payback period method ignores: D. Breakeven volume B. Time value of money A. Initial investment C. Cash inflows 98 / 100 98. Earnings per share (EPS) is calculated by: B. Net Income ÷ Outstanding Shares D. Dividends ÷ Net Worth C. Gross Profit ÷ Assets A. Revenue ÷ Equity 99 / 100 99. What is a dividend? B. Bonus paid to management A. Loan given to company D. Salary to board of directors C. Share of profits paid to shareholders 100 / 100 100. Financial leverage increases when: B. Equity increases D. Cash reserves increase C. Debt increases relative to equity A. Debt decreases Your score isThe average score is 40% 0% Restart quiz By Wordpress Quiz plugin
