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. What is the main goal of financial statement analysis? A. To avoid tax audits B. To track employee hours D. To reduce the number of transactions C. To evaluate financial health and performance 2 / 100 2. Inventory turnover is calculated as: C. Cost of Goods Sold ÷ Average Inventory B. Sales ÷ Total Assets A. Inventory ÷ Net Sales D. Gross Profit ÷ Average Inventory 3 / 100 3. The weighted average cost of capital (WACC) represents: B. Cost of operations C. Average return required by all capital providers A. Cost of debt only D. Payroll plus dividends 4 / 100 4. The primary role of finance in business strategy is to: B. Manage vendors A. Approve holidays C. Allocate capital to maximize value D. Process reimbursements 5 / 100 5. An increase in accounts receivable means: D. Liabilities decreased C. Credit sales increased A. More immediate cash B. Reduced working capital 6 / 100 6. Financial leverage increases when: C. Debt increases relative to equity B. Equity increases A. Debt decreases D. Cash reserves increase 7 / 100 7. The operating cycle of a business includes: D. Cash reserve planning B. Time between purchase of inventory and cash collection from sales C. Employee evaluations A. Issuing shares 8 / 100 8. A company’s financial year refers to: A. Any month’s revenue B. 12-month accounting period C. Revenue projections D. Fixed tax base 9 / 100 9. Free cash flow is the cash: D. Received from financing C. Saved from VAT B. Left after capital expenditures and operations A. Paid to employees 10 / 100 10. Vertical integration affects financial planning because: A. It increases product sales B. It adds business layers and capital needs C. It reduces cash flow D. It improves branding 11 / 100 11. A debenture is: D. An employee bonus C. An equipment lease A. A form of short-term equity B. A type of unsecured loan certificate 12 / 100 12. Which is NOT a source of long-term financing? D. Debentures C. Commercial paper B. Equity A. Bonds 13 / 100 13. A low quick ratio could indicate: C. Poor short-term liquidity D. Positive working capital B. High inventory risk A. Strong profitability 14 / 100 14. The primary purpose of cost accounting is to: D. Handle vendor queries A. Increase product prices B. Identify and control costs of operations C. Process payroll 15 / 100 15. What does ROI stand for? D. Retained Operating Income B. Revenue over Income C. Return on Investment A. Return on Inventory 16 / 100 16. A liquidity crisis means: D. Poor long-term growth B. Inability to pay short-term debts A. High profits C. Decline in market share 17 / 100 17. Which of these is a method of capital budgeting? B. Payback period A. TCO D. FIFO C. SWOT 18 / 100 18. The current ratio formula is: B. Net assets / Current liabilities D. Current revenue / Current cost C. Current assets / Current liabilities A. Current liabilities / Total equity 19 / 100 19. A treasury function manages: A. Office equipment B. Branding strategy C. Cash, liquidity, and risk D. Asset depreciation 20 / 100 20. 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 21 / 100 21. What is a sunk cost? C. A cost related to salaries B. A cost expected in the future A. A cost already incurred and not recoverable D. A cost adjusted for inflation 22 / 100 22. Dividend yield is calculated as: B. Dividend per share ÷ market price per share D. Profit ÷ tax C. Market price ÷ earnings A. Net income ÷ dividend 23 / 100 23. The time value of money means: D. Only future value matters A. Money loses value due to inflation B. A naira today is worth more than a naira tomorrow C. Taxes reduce cash value 24 / 100 24. What does the term 'leverage' refer to in finance? C. Use of debt to finance assets B. Asset revaluation D. Employee performance A. Sales incentives 25 / 100 25. A company with more debt than equity is said to be: B. Under-leveraged A. leveraged C. Over-capitalized Highly D. Liquid 26 / 100 26. Liquidity ratios measure: B. Cash reserves A. Net profit C. Short-term financial stability D. Dividend payout 27 / 100 27. A financial controller is responsible for: B. Sales training A. Auditing competitors C. Managing internal financial operations and reports D. Reviewing legal documents 28 / 100 28. 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 29 / 100 29. Discounted cash flow (DCF) is used to: C. Evaluate investment using present value of future cash flows B. Forecast employee cost D. Record invoices A. Determine tax liability 30 / 100 30. What is meant by “diversification” in portfolio management? C. Investing in different assets to reduce risk B. Concentrating all funds on fixed income D. Avoiding risk calculations A. Focusing on a single market 31 / 100 31. Which of the following is NOT a cash inflow? s D. Loan proceeds C. Revenue from sale B. Dividends paid A. Interest received 32 / 100 32. A fixed cost is: B. Changes with production A. Always variable C. Constant regardless of output D. Not recorded in financial books 33 / 100 33. Which one of the following is a liquidity ratio? B. Gross margin C. Quick ratio D. Return on investment A. Debt-to-equity 34 / 100 34. Compound interest is: C. Interest calculated on both principal and accumulated interest B. Repeated interest penalties D. Monthly deductions A. Interest paid on principal only 35 / 100 35. Capital markets deal with: A. Working capital B. Short-term credit D. Internal HR disputes C. Long-term securities like stocks and bonds 36 / 100 36. A financial benchmark index is used to: C. Audit taxes A. Count inventory B. Compare a fund’s performance against the market D. Rate company logos 37 / 100 37. Which of these reduces the time value of money? C. Discounts B. Inflation A. Interest D. Cash flow 38 / 100 38. Which document shows a company’s financial performance over time? B. Bank statement D. Ledger C. Income statement A. Balance sheet 39 / 100 39. Which of the following is an example of a non-operating expense? A. Rent B. Utility bills C. Loss on sale of equipment D. Raw materials cost 40 / 100 40. A rights issue is: C. New shares offered to existing shareholders A. Free shares to employees D. Corporate loan repayment B. Government-mandated equity 41 / 100 41. What is the primary benefit of budgeting? C. Effective resource allocation and control D. Profit sharing A. Tax deduction B. Meeting legal standards 42 / 100 42. Which of the following is a key function of financial management? D. Market segmentation A. Recruitment planning C. Capital budgeting B. Inventory auditing 43 / 100 43. Which of the following is a marketable security? D. Patents B. Land C. Treasury bills A. Buildings 44 / 100 44. What does a gearing ratio measure? C. Debt relative to equity D. Tax-to-income B. Cost per unit A. Marketing reach 45 / 100 45. Financial leverage increases: A. Control of operations D. Depreciation cost C. Market share B. Risk and potential return 46 / 100 46. What does the term 'amortization' usually apply to? A. Physical assets D. Current assets C. Intangible assets B. Tangible assets 47 / 100 47. What is financial forecasting? A. Estimating past expenses C. Projecting future financial outcomes D. Measuring employee turnover B. Predicting tax rates 48 / 100 48. The primary objective of portfolio diversification is to: B. Maximize leverage D. Guarantee dividends C. Minimize investment risk A. Increase taxes 49 / 100 49. Which of the following best describes a financial audit? A. A sales campaign B. A system of employee evaluation D. A supplier performance review C. An independent examination of financial records 50 / 100 50. Which of the following is NOT a money market instrument? C. Certificates of Deposit D. Equity Shares A. Treasury Bills B. Commercial Papers 51 / 100 51. What is the formula for gross profit? A. Revenue – Operating Expenses D. Net income – Dividends B. Sales – Cost of Goods Sold C. Sales – Tax 52 / 100 52. Profitability ratios assess: B. Expense quality D. Dividend ratio C. Company’s ability to generate earnings A. Capital cost 53 / 100 53. What is financial modeling used for? D. Product marketing C. Filing taxes B. Creating financial representations for decision-making A. Staff training 54 / 100 54. Market risk is also referred to as: D. Operational risk A. Residual risk B. Unsystematic risk C. Systematic risk 55 / 100 55. The main objective of internal controls is to: D. Forecast depreciation B. Prevent errors and fraud A. Increase equity C. Approve salaries 56 / 100 56. The breakeven point occurs when: B. Fixed costs are zero C. Total revenue equals total cost A. Profit is maximized D. Sales double 57 / 100 57. Internal rate of return (IRR) is the discount rate that: B. Results in zero net present value A. Maximizes investment D. Increases accounting profit C. Minimizes project cost 58 / 100 58. An example of a fixed asset is: B. Prepaid rent D. Accounts receivable A. Inventory C. Machinery 59 / 100 59. The accrual basis of accounting records: A. Cash only C. Transactions when they occur, not when cash is exchanged D. Supplier transactions only B. Income and expenses when cash is received 60 / 100 60. A common size financial statement expresses items as: B. Currency differences A. Raw figures only D. Projections for future value C. Percentages of a base item 61 / 100 61. Inflation affects financial management because: C. It reduces the purchasing power of money A. It increases employee motivation B. It decreases cost of borrowing D. It boosts dividends 62 / 100 62. GAAP stands for: C. Governmental Audit & Assurance Practice B. Generally Accepted Accounting Principles D. General Accounting Accuracy Policy A. General Access Accounting Platform 63 / 100 63. The payback period method ignores: A. Initial investment B. Time value of money D. Breakeven volume C. Cash inflows 64 / 100 64. Bookkeeping is concerned with: C. Audit reports A. Complex investment strategy D. Tax computation B. Recording day-to-day transactions 65 / 100 65. What is a financial covenant? B. Clause in a loan agreement restricting borrower’s actions D. Audit penalty A. Profit-sharing agreement C. Dividend reinvestment plan 66 / 100 66. Retained earnings represent: B. Profits reinvested into the business D. Dividends paid C. Amount owed to vendors A. Loan repayment 67 / 100 67. The primary focus of treasury management is: C. Cash, liquidity, and risk management D. Supplier logistics B. Investment analysis A. Human capital 68 / 100 68. Time value of money assumes: C. Inflation doesn’t exist B. Earlier cash flows are more valuable than future ones A. All money loses value D. Discounting is not needed 69 / 100 69. Earnings per share (EPS) is calculated by: C. Gross Profit ÷ Assets D. Dividends ÷ Net Worth A. Revenue ÷ Equity B. Net Income ÷ Outstanding Shares 70 / 100 70. Financial intermediaries include: D. HR managers B. Wholesalers and agents C. Banks, insurance companies, and mutual funds A. Suppliers and manufacturers 71 / 100 71. What is a dividend? C. Share of profits paid to shareholders B. Bonus paid to management A. Loan given to company D. Salary to board of directors 72 / 100 72. A contingency reserve is created to: C. Issue dividends A. Buy assets B. Cover potential unexpected costs D. Adjust net sales 73 / 100 73. What is the primary purpose of trial balance? B. To prepare marketing reports C. To ensure total debits equal total credits A. To calculate net profit D. To balance sales and purchases 74 / 100 74. In capital structure, equity financing involves: B. Shareholder contributions A. Bank loans D. Inventory turnover C. Government grants 75 / 100 75. Scenario analysis is used to: D. Adjust invoices A. Avoid planning B. Prepare for multiple financial outcomes C. Track audit trails 76 / 100 76. The matching principle in accounting ensures: C. Assets equal liabilities D. Cash is recorded immediately A. All sales are recorded when received B. Revenues and related expenses are recorded in the same period 77 / 100 77. Which one is NOT a financial statement? D. Cash Flow Statement A. Balance Sheet B. Income Statement C. General Ledger 78 / 100 78. Derivatives derive their value from: D. Revenue inflow C. Underlying assets like stocks or bonds B. Financial statements A. Government policies 79 / 100 79. Which activity is classified under investing in the cash flow statement? C. Purchase of fixed assets B. Repayment of loans D. Increase in salaries A. Payment of dividends 80 / 100 80. Capital structure decisions affect: A. Sales forecasting B. Recruitment plans D. Product pricing C. Debt-equity balance of financing 81 / 100 81. When liabilities exceed assets, the company is: B. Profitable A. Liquid C. Insolvent D. Leveraged 82 / 100 82. A callable bond gives the issuer the right to: D. Increase coupon rate B. Redeem before maturity C. Cancel dividend payments A. Convert it to equity 83 / 100 83. EBIT stands for: A. Earnings Before Income and Taxes D. Equity Before Internal Transfers C. Excess Before Internal Transactions B. Earnings Before Interest and Taxes 84 / 100 84. What is depreciation? B. Non-cash expense to allocate cost of tangible assets D. Cash paid to vendors A. Increase in asset value C. Revenue loss 85 / 100 85. Financial statements must follow which principle? B. Marketing ROI C. Generally Accepted Accounting Principles (GAAP) D. Auditing rules only A. Ethical clearance 86 / 100 86. What is the primary purpose of a financial controller? C. Oversee financial reporting and internal controls D. Supervise customer service B. Manage day-to-day HR A. Conduct field audits 87 / 100 87. Cash flow from operating activities includes: B. Dividends paid C. Product sales revenue D. Purchase of machinery A. Loan repayments 88 / 100 88. Operating leverage affects: D. Investment policy C. Short-term borrowings A. Cost of sales B. Contribution margin and fixed cost risk 89 / 100 89. A higher debt ratio implies: C. Greater financial risk A. Strong liquidity D. Higher net income B. More equity 90 / 100 90. One advantage of equity financing is: A. Regular interest payments C. No obligation to repay funds B. Ownership dilution D. Higher debt ratios 91 / 100 91. A budget is defined as: A. A list of assets C. A financial plan for future income and expenditure D. The amount paid to shareholders B. A short-term investment plan 92 / 100 92. Working capital management involves decisions about: A. Long-term investments C. Employee training B. Short-term assets and liabilities D. Product design 93 / 100 93. What is a common goal of financial management? D. Avoiding taxes A. Maintaining employee files B. Maximizing profits responsibly C. Reducing production 94 / 100 94. Debt-to-equity ratio is used to assess: D. Sales performance B. Profitability C. Inventory flow A. Leverage and financial risk 95 / 100 95. A favorable budget variance indicates: A. Overspending D. Costs were lower than expected C. Costs were higher than planned B. Underperformance 96 / 100 96. What is a credit rating used for? B. Measuring employee risk A. Estimating tax D. Budgeting wages C. Assessing creditworthiness of a borrower 97 / 100 97. Which ratio measures a company’s ability to meet short-term obligations? A. Profit margin B. Asset turnover C. Current ratio D. Return on equity 98 / 100 98. When a company buys back its own shares, it's called: A. Stock-splitting D. Reverse IPO C. Share repurchase B. Equity dilution 99 / 100 99. One disadvantage of debt financing is: C. Mandatory interest payments D. Reduced control B. High employee turnover A. Dilution of ownership 100 / 100 100. What is float in cash management? A. Extra expenses D. Lost revenue B. Net revenue C. Time difference between cash disbursement and actual withdrawal Your score isThe average score is 59% 0% Restart quiz By Wordpress Quiz plugin
