This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 14 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What role does financial forecasting play in a business? A) It helps in predicting future revenue and expenses. B) It is only useful for large corporations. C) It focuses on historical data only. D) It is not relevant for small businesses. Show Answer Correct Answer: A) It helps in predicting future revenue and expenses. 2. If customers pay their bills on time they will have A) A higher credit score. B) A lower credit score. C) The same credit score. D) None of the above. Show Answer Correct Answer: A) A higher credit score. 3. At what age does the example suggest starting to invest for better outcomes? A) 30. B) 21. C) 25. D) 18. Show Answer Correct Answer: D) 18. 4. Apa yang dimaksud dengan diversifikasi dalam investasi? A) Menginvestasikan uang dalam mata uang asing. B) Menginvestasikan semua uang dalam satu jenis aset. C) Menginvestasikan uang dalam logam mulia. D) Menginvestasikan uang dalam berbagai jenis aset. Show Answer Correct Answer: D) Menginvestasikan uang dalam berbagai jenis aset. 5. Di bawah ini merupakan informasi dari PT LulusHutang Jk Panjang:$ 1.500Hutang Jk Pendek:$ 300Ekuitas:$ 250Berapakah total aktiva yang dimiliki PT Lulus? A) $ 2.500. B) $ 1.250. C) $ 3.000. D) $ 2.050. Show Answer Correct Answer: D) $ 2.050. 6. What is financial planning? A) How you can spend your money the fastest way possible. B) Managing money so that you can meet short and long term financial goals. C) A fancy term for budgeting. D) None of the above. Show Answer Correct Answer: B) Managing money so that you can meet short and long term financial goals. 7. Salah satu ruang lingkup dalam managemen keuangan, yaitu: A) Keputusan pendapatan. B) Keputusan investasi. C) Keputusan menabung ke bank. D) Keputusan pengeluaran. Show Answer Correct Answer: B) Keputusan investasi. 8. . Long term fund sources are ..... A) Retained earnings. B) Debentures. C) Share capital. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. What is the significance of the quick ratio? A) It measures a company's long-term profitability. B) The quick ratio is significant as it assesses a company's short-term financial stability and liquidity. C) The quick ratio is used to evaluate employee performance. D) It indicates the total assets of a company. Show Answer Correct Answer: B) The quick ratio is significant as it assesses a company's short-term financial stability and liquidity. 10. Which among the following is not true about an operating lease1. Short term lease2. Irrevocable3. Lessee bears the cost of maintenance and insurance 4. Revocable A) Only 4. B) 2 & 4. C) 1 & 4. D) 2 & 3. Show Answer Correct Answer: D) 2 & 3. 11. ..... is the example of a financial decision. A) Investment decision. B) Financing decision. C) Dividend decision. D) All of these. Show Answer Correct Answer: D) All of these. 12. Assume that you are willing to postpone consumption today and buy a certificate of deposit (CD) at your local bank. Your reward for postponing consumption implies that at the end of the year ..... A) You will be able to buy more goods or services. B) You will be able to buy fewer goods or services. C) You will be able to buy the same amount of goods or services. D) You will be able to consume fewer goods. Show Answer Correct Answer: A) You will be able to buy more goods or services. 13. Preprinted, fixed amount check sold by financial institutions which make an unconditional payment to whoever has this A) Personal Check. B) Certified Check. C) Traveler's Check. D) Business Check. Show Answer Correct Answer: C) Traveler's Check. 14. In terms of business accounts and finance, an investment is A) Purchasing new capital equipment. B) Financing a long-term bank loan paying interest. C) Returning dividends to shareholders. D) Having retained earnings receiving interest in the bank. Show Answer Correct Answer: A) Purchasing new capital equipment. 15. A share having no face value. A) Preference Shares. B) Debenture shares. C) No par Share. D) Equity Shares. Show Answer Correct Answer: C) No par Share. 16. A debt instrument used by companies is called: A) Share certificate. B) Invoice. C) Debenture. D) Cheque. Show Answer Correct Answer: C) Debenture. 17. The average of a firm's cost of equity and after tax cost of debt that is weighted based on the firm's capital structure is called the: A) Structured cost of capital. B) Weighted capital gains rate. C) Subjective cost of capital. D) Weighted average cost of capital. Show Answer Correct Answer: D) Weighted average cost of capital. 18. Which of the following is not the factor affecting Investment decision. A) Flotation cost. B) Investment criteria. C) Rate of return of project. D) Cash flows of project. Show Answer Correct Answer: A) Flotation cost. 19. The followings are the characteristics of common stock, except A) Voting rights. B) Preemptive right. C) Limited liability. D) Call feature. Show Answer Correct Answer: D) Call feature. 20. Theory of Comparative Advantage was given by ..... A) Hecksher Ohlin. B) Adam Smith. C) David Ricardo. D) Raymond Vernon. Show Answer Correct Answer: C) David Ricardo. 21. Anything that you spend money on. A) Income. B) Expense. C) Withdrawal. D) Deposit. Show Answer Correct Answer: B) Expense. 22. Which of the following is not a function of a finance manager? A) Investor relations. B) Credit & collections. C) Investments. D) Appointment of financial personnel. Show Answer Correct Answer: D) Appointment of financial personnel. 23. What is the purpose of a FICA tax? A) It provides health insurance for people who are retired or disabled. B) It helps the state government finance education projects. C) It helps local councils finance development projects. D) None of the above. Show Answer Correct Answer: A) It provides health insurance for people who are retired or disabled. 24. Maximisation of Shareholders Wealth is reflected in A) Sales Maximization. B) Number of Shareholders. C) Market Price of Equity Shares. D) None of the above. Show Answer Correct Answer: C) Market Price of Equity Shares. 25. The decision to allocate capital to long-term assets, such as purchasing a new fleet of aircraft, is classified as which major financial decision? A) Liquidity decision. B) Investment decision. C) Dividend decision. D) Financing decision. Show Answer Correct Answer: B) Investment decision. 26. Present value takes ..... A) Compounding rate. B) Deflation rate. C) Discounting rate. D) Inflation rate. Show Answer Correct Answer: C) Discounting rate. 27. The sources of finance from which the quantum of required funds can be raised is/are: A) Share capital. B) Trade credit. C) Debt capital. D) All of these. Show Answer Correct Answer: D) All of these. 28. Stockholders' equity refers to the assets remaining in a business once all liabilities have been settled. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 29. Which of the following is not a spontaneous source of Short-term funds? A) Trade credit. B) Accrued Expenses. C) Provision for Dividend. D) All of the above. Show Answer Correct Answer: C) Provision for Dividend. 30. Which one of the following is NOT issued at discount to face value? A) Treasury bills. B) Commercial paper. C) Certificate of deposit. D) Equity Share. Show Answer Correct Answer: D) Equity Share. 31. Which budget focuses on a company's long-term capital investments? A) Cash budget. B) Capital budget. C) Operational budget. D) Flexible budget. Show Answer Correct Answer: B) Capital budget. 32. Depreciation is recorded as: A) Liability. B) Asset. C) Revenue. D) Expense. Show Answer Correct Answer: D) Expense. 33. It is a financial institution licensed to receive deposits and make loans. A) Financial. B) Financial Banking. C) Bank. D) Finance. Show Answer Correct Answer: C) Bank. 34. A complete set of financial statements includes the following components, except A) Statement of financial position, statement of comprehensive income and statement of cash flows. B) Statement of changes in equity. C) Notes, comprising a summary of significant accounting policies and other explanatory information. D) Reports and statements such as environmental reports and value added statements. Show Answer Correct Answer: D) Reports and statements such as environmental reports and value added statements. 35. According to the net operating income approach A) Financial mix is irrelevant and it does not affect the value of the firm. B) The business risk remains constant at every level of Dept equity mix. C) Every capital is optimum capital structure as per NOI approach. D) All of the above. Show Answer Correct Answer: D) All of the above. 36. What is the main focus of financial planning? A) Maximizing expenses. B) Measuring financial necessities. C) Ignoring financial risks. D) Focusing solely on revenue. Show Answer Correct Answer: B) Measuring financial necessities. 37. Marginal cost of capital is the cost of A) Additional Sales. B) Additional Funds. C) Additional Interests. D) None of the above. Show Answer Correct Answer: B) Additional Funds. 38. Financial leverage measures ..... A) No change with EBIT and EPS. B) 1% variation in the level of production. C) Sensitivity of EPS with respect to 1% change in level of EBIT. D) Sensitivity of EBIT with respect of 1% change with respect to output. Show Answer Correct Answer: D) Sensitivity of EBIT with respect of 1% change with respect to output. 39. ..... is concerned with the maximization of a firm's earnings after taxes A) EPS maximization. B) Shareholder wealth maximization. C) Profit maximization. D) Stakeholder maximization. Show Answer Correct Answer: C) Profit maximization. 40. Permanent working capital A) Varies with seasonal needs. B) Includes accounts payable. C) Is the amount of current assets required to meet a firm's long-term minimum needs. D) Includes fixed assets. Show Answer Correct Answer: C) Is the amount of current assets required to meet a firm's long-term minimum needs. 41. Time value of money indicates that A) A unit of money obtained today is worth more than a unit of money obtained in future. B) B. A unit of money obtained today is worthless them a unit of money obtained in future. C) C. There is no difference in the value of money obtained today and tomorrow. D) D. None of these. Show Answer Correct Answer: A) A unit of money obtained today is worth more than a unit of money obtained in future. 42. Which of the following best defines accounting? A) Controlling employee behavior. B) Recording and communicating financial information. C) Trading goods and services. D) Setting national financial policies. Show Answer Correct Answer: B) Recording and communicating financial information. 43. The sale of "new" securities, where the financial asset is being traded for the very first time, is said to take place in the ..... market. A) Primary. B) Capital. C) Money. D) Secondary. Show Answer Correct Answer: A) Primary. 44. This decision determines the overall cost of capital and the financial risk of the enterprise A) Investment decision. B) Dividend decision. C) Capital budgeting decision. D) Financing decision. Show Answer Correct Answer: D) Financing decision. 45. Laporan keuangan yang memberikan informasi mengenai harta, modal, dan ekuitas perusahaan pada tanggal tertentu adalah? A) Consolidate Statement of Changes in Equity. B) Income Statement. C) Balance Sheet. D) Cash Flow. Show Answer Correct Answer: C) Balance Sheet. 46. Operating leverage works when A) Sales Increases. B) Sales Decreases. C) Both a & b. D) None of a & b. Show Answer Correct Answer: C) Both a & b. 47. You can invest your money at a rate of 7% per year. At this rate it will take you just over ..... years to double your money. Use the Rule of 72 to determine your answer. A) 5.5. B) 10. C) There is not enough information to answer this question. D) 4. Show Answer Correct Answer: B) 10. 48. It is a financial statement that shows the company's cash receipts and cash payments during a specific period of time. A) Statement of Cash Flow. B) Statement of stockholder's Equity. C) Balance Sheet Statement. D) Income Statement. Show Answer Correct Answer: A) Statement of Cash Flow. 49. Below are the characteristics of excessive spending, EXCEPT ..... A) Cash is too large. B) So many people are unemployed. C) Cash is too small to pay its obligations. D) Too much raw. Show Answer Correct Answer: C) Cash is too small to pay its obligations. 50. What is a SHORT term goal? A) A financial goal you can reach within 1 year or less than 12 months. B) A financial goal you can achieve in more than a year ( over 12 months). C) All the above. D) None of the above. Show Answer Correct Answer: A) A financial goal you can reach within 1 year or less than 12 months. 51. I am opening a new bank account today to deposit my birthday money. A) Spending. B) Saving. C) Donating. D) Earning. Show Answer Correct Answer: B) Saving. 52. The value of the business on a specific date is referred to as ..... A) Owner's equity. B) Liability. C) Asset. D) Debt. Show Answer Correct Answer: A) Owner's equity. 53. How does a low credit score effect the cost of a loan? A) It will be less expensive. B) It will be more expensive. C) All the above. D) None of the above. Show Answer Correct Answer: B) It will be more expensive. 54. The decisions of investing in long term or fixed assets on the basis of cost-benefit analysis or risk-return analysis are known as: A) Working capital decisions. B) Financial Decisions. C) Capital budgeting decisions. D) None of these. Show Answer Correct Answer: C) Capital budgeting decisions. 55. Higher level of competition neccesitates A) More fixed capital. B) More working capital. C) No working capital. D) Less working capital. Show Answer Correct Answer: B) More working capital. 56. The controller's responsibilities are primarily in nature, while the treasurer's responsibilities are primarily related to . A) Financial management; accounting. B) Financial management; operations. C) Operational; financial management. D) Accounting; financial management. Show Answer Correct Answer: D) Accounting; financial management. 57. Purchased, immediately paid for. Ex. Store card, gift card, and multi currency prepaid card A) Plastic Money. B) Prepaid Cash Card. C) Cash Card. D) Debit Card. Show Answer Correct Answer: B) Prepaid Cash Card. 58. A bank offers the following investments. Which do you prefer? A) A stated rate of 10% continuously compounded. B) Stated rate of 10% compounded annually. C) A stated rate of 10% compounded semi-annually. D) A rate of 10% simple interest. Show Answer Correct Answer: A) A stated rate of 10% continuously compounded. 59. During the summer, I work at the pool. A) Donating. B) Spending. C) Earning. D) Investing. Show Answer Correct Answer: C) Earning. 60. What out of the following, financial planning helps to achieve? A) Arrangement of material. B) Financial control. C) Arrangement of machinery. D) All of above. Show Answer Correct Answer: B) Financial control. ← PreviousNext →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Business Studies Chapter 9 Financial Management Quiz 1Class 12 Business Studies Chapter 9 Financial Management Quiz 2Class 12 Business Studies Chapter 9 Financial Management Quiz 3Class 12 Business Studies Chapter 9 Financial Management Quiz 4Class 12 Business Studies Chapter 9 Financial Management Quiz 5Class 12 Business Studies Chapter 9 Financial Management Quiz 6Class 12 Business Studies Chapter 9 Financial Management Quiz 7Class 12 Business Studies Chapter 9 Financial Management Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books