Finance Practice Questions

Topics Covered:
General Finance, Planning, Capital and Investment Decisions, Financial Risk, Corporate Funding

30 Questions

Practice Questions

1. What is the primary goal of financial management?

2. Which of the following is a key function of financial management?

3. Which financial statement shows a company’s financial position at a specific time?

4. What is the purpose of financial budgeting in management?

5. Which budgeting method requires justifying every expense from scratch?

6. What is the key benefit of financial forecasting?

7. What is working capital?

8. Which of the following is an example of equity financing?

9. What does a high debt-to-equity ratio indicate?

10. What is the purpose of a cost-benefit analysis in investment decisions?

11. Which of the following is NOT a financial risk?

12. How do companies manage financial risks effectively?

13. What is the primary role of insurance in financial risk management?

14. Which of the following is a long-term source of financing?

15. What is the main advantage of venture capital financing?

16. What is an Initial Public Offering (IPO)?

17. What does a higher return on investment (ROI) indicate?

18. Which of the following ratios measures a company's profitability?

19. What does financial benchmarking help a company do?

20. How does FinTech (Financial Technology) improve financial management?

21. Which of the following financial statements shows a company’s profitability over a period of time?

22. What does liquidity refer to in financial management?

23. Which type of financing is repayable with interest over time?

24. What is the main objective of working capital management?

25. What is capital budgeting used for in financial management?

26. Which of the following is an example of non-current liabilities?

27. What does the price-to-earnings (P/E) ratio measure?

28. What is a cash flow statement primarily used for?

29. What is the primary function of financial controllers in a company?

30. What happens when a company’s current ratio is less than 1?