This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 17 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. We multiply foreign revenue with rate with respect to that country is A) Portfolio investments. B) Forward rate. C) Cash flows. D) Spot rate. Show Answer Correct Answer: D) Spot rate. 2. 1-Financial Management is mainly concerned with ..... A) All aspects of acquiring and utilizing financial resources for firm's activities. B) Arrangement of funds. C) Efficient Management of every business. D) Profit maximization. Show Answer Correct Answer: A) All aspects of acquiring and utilizing financial resources for firm's activities. 3. Laporan keuangan apa yang merangkum perubahan dari balance sheets? A) Cash Flow Statement. B) Income Statement ( Profit / Lost). C) Semua jawaban tidak benar. D) Income Statement & Cash flow statement. Show Answer Correct Answer: C) Semua jawaban tidak benar. 4. Businesses can practice social responsibility by donating money, products or services to social causes and nonprofits. A) ENVIRONMENTAL EFFORTS. B) PHILANTHROPY. C) All the above. D) None of the above. Show Answer Correct Answer: B) PHILANTHROPY. 5. Who should attend financial management training? A) Only those with skills in business analyst. B) Only those with accounting experience. C) Both accounting and non-accounting personnel. D) Only those with finance experience. Show Answer Correct Answer: C) Both accounting and non-accounting personnel. 6. What is the significance of financial ratios in management? A) Financial ratios have no impact on strategic planning. B) Financial ratios are primarily used for tax calculations. C) Financial ratios are only useful for investors. D) Financial ratios help management assess performance, make informed decisions, and identify trends. Show Answer Correct Answer: D) Financial ratios help management assess performance, make informed decisions, and identify trends. 7. Compounding technique is used to: A) Find out the future value of money. B) Find out both present and future value of money. C) Find out the present value of money. D) None of the above. Show Answer Correct Answer: A) Find out the future value of money. 8. Firms can avoid Floatation Cost by raising funds through loan. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 9. Money given value by the government through a fiat or decree A) Fiat/Fiduciary Money. B) Representative Money. C) All the above. D) None of the above. Show Answer Correct Answer: A) Fiat/Fiduciary Money. 10. Mr Ali and his wife intend to buy a house within six years after getting married. Their total monthly income is RM4500 and their total fixed and variable expenses is RM3450. They plan to buy an apartment of RM302 400 with a down payment of RM30 240. How much is the monthly savings that need to be saved by Mr Ali and his wife to achieve their goal. A) RM1050. B) RM3780. C) RM420. D) RM630. Show Answer Correct Answer: C) RM420. 11. Which objective is universally accepted in financial management? A) Wealth maximization. B) Cost minimization. C) Sales maximization. D) Profit maximization. Show Answer Correct Answer: A) Wealth maximization. 12. Financial manger tries to identify investment opportunities that work more to the firm then the cost to acquire it A) Working capital Mangment. B) Capital structure design. C) Capital Budgeting decision. D) Agency cost. Show Answer Correct Answer: C) Capital Budgeting decision. 13. What practices can be done to reduce agency cost? A) Corporate governance. B) Paying salary. C) Giving investment. D) Dividend. Show Answer Correct Answer: A) Corporate governance. 14. What does ARM stand for? A) An appendage from your torso with a hand and elbow. B) Adjustable rate mortgage. C) Adjustable rate money. D) Adjustable ratio mortgage. Show Answer Correct Answer: B) Adjustable rate mortgage. 15. What is installment credit? A) When you repay a loan over a set period of time with smaller payments to add up to a big payment. B) When you have to pay off the balance in full 30 days after you make the purchase. C) All the above. D) None of the above. Show Answer Correct Answer: A) When you repay a loan over a set period of time with smaller payments to add up to a big payment. 16. Making payments on time each month will A) Improve your credit score. B) Hurt your credit score. C) All the above. D) None of the above. Show Answer Correct Answer: A) Improve your credit score. 17. Shell of a mollusk; first used in China, widely and longest currency in history A) Metals. B) Cowrie shell. C) Cattle. D) Wampum. Show Answer Correct Answer: B) Cowrie shell. 18. The funds raised by the issue of ..... are the best from the risk point of view for the company. A) Equity shares. B) Debentures. C) Both (A) & (B). D) None of the above. Show Answer Correct Answer: A) Equity shares. 19. A fixed asset should be financed through: A) A long-term liability. B) A short-term liability. C) A mix of long and short-term liabilities. D) Current liability. Show Answer Correct Answer: A) A long-term liability. 20. What is the significance of cash flow in financial management? A) Cash flow has no impact on investment decisions. B) Cash flow is irrelevant to business operations. C) Cash flow is essential for assessing liquidity, solvency, and financial health. D) Cash flow is only important for tax purposes. Show Answer Correct Answer: C) Cash flow is essential for assessing liquidity, solvency, and financial health. 21. Choose the correct way to evaluate financial position. A) Credit statement. B) Balance sheet. C) Budget. D) Credit flow. Show Answer Correct Answer: B) Balance sheet. 22. Alat yang digunakan perusahaan untuk menilai kinerja keuangan perusahaan berdasarkan data perbandingan masing-masing pos dalam laporan keuangan, disebut: A) Activity Ratio. B) Neraca & Rugi Laba. C) Ratio perputaran uang. D) Analisa Ratio Keuangan. Show Answer Correct Answer: D) Analisa Ratio Keuangan. 23. What is the present value annuity due factor of $ 1 at a discount rate of 15% for 15 years? A) $ 5.8474. B) 8.5143. C) $ 6.7245. D) 7.1324. Show Answer Correct Answer: C) $ 6.7245. 24. What is the impact of the COVID-19 pandemic on the global economy? A) Increased rate of return on investments. B) Stable financial markets. C) Rapid economic downturns in many countries. D) Positive economic growth. Show Answer Correct Answer: C) Rapid economic downturns in many countries. 25. What is the primary function of the primary market? A) Dealing with securities issued for the first time. B) Providing investment advice. C) Trading previously issued securities. D) Promoting liquidity of financial assets. Show Answer Correct Answer: A) Dealing with securities issued for the first time. 26. Which of the following is an example of an Information System used in business? A) Ride-Sharing Apps. B) Enterprise Resource Planning (ERP) Systems. C) Online Banking. D) Social Media Platforms. Show Answer Correct Answer: B) Enterprise Resource Planning (ERP) Systems. 27. A high Debt-to-Equity Ratio for an airline indicates: A) Low financial risk. B) Heavy reliance on owner's funds (equity). C) High leverage and reliance on borrowed funds (debt). D) Superior operational efficiency. Show Answer Correct Answer: C) High leverage and reliance on borrowed funds (debt). 28. FW Co is expecting a receipt of $ 10, 000 (in real terms) in 1 year's time.If FW Co expects inflation to increase, and receipts are expected to rise in line with the general rate of inflation, what impact will this have on the present value of that receipt? A) Nil. B) Cannot say. C) Increase. D) Reduce. Show Answer Correct Answer: A) Nil. 29. Pengertian dari managemen keuangan salah sbb: A) Bagaimana memanage keuangan dalam suatu perusahaan demi keuntungan perusahaan. B) Segala kegiatan & aktifitas keuangan dalam perusahaan untuk mengatur mengelola uang yang didapat dari penjualan. C) Cara mengatur keuangan rumah tangga. D) Segala kagiatan / aktifitas yg berhubungan bagimana cara memperoleh pendanaan modal kerja, mengalokasikan dana & mengelola asset untuk mencapai tujuan utama perusahaan. Show Answer Correct Answer: D) Segala kagiatan / aktifitas yg berhubungan bagimana cara memperoleh pendanaan modal kerja, mengalokasikan dana & mengelola asset untuk mencapai tujuan utama perusahaan. 30. Bob works a long day of 14 hours, he makes $ 12.50 per hour-what is his gross pay for that day? (remember 8 hours is a day) A) $ 212.50. B) $ 200.00. C) $ 185.50. D) $ 112.50. Show Answer Correct Answer: A) $ 212.50. 31. Urgency method is suitable for short term projects A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 32. EBIT = Rs.1, 50, 000; Operating Leverage = 2; Contribution=? A) Rs.1, 00, 000. B) Rs.4, 00, 000. C) Rs.3, 00, 000. D) Rs.5, 00, 000. Show Answer Correct Answer: C) Rs.3, 00, 000. 33. Berdasarkan tips yang disajikan, apa yang tidak termasuk dalam cara mengelola utang? A) Mencari alternatif pembiayaan yang lebih murah. B) Menggunakan kartu kredit secara berlebihan. C) Membuat anggaran untuk setiap kebutuhan. D) Menetapkan prioritas pembayaran. Show Answer Correct Answer: B) Menggunakan kartu kredit secara berlebihan. 34. What out of the following is the effect of optimum capital structure? A) Capital cost-minimum. B) Total value of company-maximum. C) Both (a) and (b). D) Market price of shares minimum. Show Answer Correct Answer: C) Both (a) and (b). 35. Discounting formula A) EAR = (i/m.n)-1. B) PV = FV / (1+i)$^{n}$. C) FVa=\{1-(1/(1+i)$^{n}$)\}/i. D) FV = PV (1+i)$^{n}$. Show Answer Correct Answer: B) PV = FV / (1+i)$^{n}$. 36. What are the different methods of financial analysis? A) Ratio analysis, trend analysis, comparative analysis, and cash flow analysis. B) Budget analysis, risk analysis, investment analysis. C) Qualitative analysis, quantitative analysis, predictive analysis. D) Regression analysis, forecasting, variance analysis. Show Answer Correct Answer: A) Ratio analysis, trend analysis, comparative analysis, and cash flow analysis. 37. A ball costs $ 5. Tax is 6%. Find the amount of tax for the ball. A) .35. B) .31. C) .25. D) .30. Show Answer Correct Answer: D) .30. 38. A bank account where you can store money you don't need right away but keep it easily available and safe. You usually earn interest on this type of account. A) Savings account. B) Checking Account. C) Credit. D) FICO score. Show Answer Correct Answer: A) Savings account. 39. Companies with a higher growth pattern are likely to: A) Pay lower dividends. B) Pay higher dividends. C) Dividends are not affected by growth considerations. D) None of the above. Show Answer Correct Answer: A) Pay lower dividends. 40. What can happen if taxes are not planned appropriately? A) Better financial decisions. B) Lower investments. C) Increased savings. D) Higher spending. Show Answer Correct Answer: D) Higher spending. 41. The decision related to distribution of residual profit is called A) (a) Investment decision. B) (b) Financing decision. C) C) Dividend decision. D) (d) None of the above. Show Answer Correct Answer: C) C) Dividend decision. 42. What is the primary goal of capital budgeting? A) To determine short-term financing needs. B) To assess employee performance in financial management. C) To analyze market trends for investment opportunities. D) To evaluate and select long-term investments that maximize shareholder value. Show Answer Correct Answer: D) To evaluate and select long-term investments that maximize shareholder value. 43. Which of the following is not a function of a Chief Financial Officer? A) Generating sales leads. B) Dividend decision. C) Cash Management. D) Estimating the requirement of funds. Show Answer Correct Answer: A) Generating sales leads. 44. Dividend is distributed through A) Profits. B) Capital. C) Asset. D) Debt. Show Answer Correct Answer: A) Profits. 45. Corporate Finance is wider than business finance A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 46. The objective of financial management is to A) Generate maximum funds for the firm at the least cost. B) Generate the maximum net profit. C) . D) Generate the maximum wealth for its shareholders. E) Generate the maximum retained earnings. Show Answer Correct Answer: D) Generate the maximum wealth for its shareholders. 47. Financial statements that have not undergone external auditing procedures may prove to be inaccurate or worse, fraudulent hence, do not fairly present the company's financial condition. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 48. Australia became the first country to have a full set of circulating polymer banknotes of all denominations A) 1996. B) 2005. C) 1988. D) 1983. Show Answer Correct Answer: A) 1996. 49. Cost of advertising, printing prospectus, etc incurred at the time of raising funds is called ..... A) Opportunity Cost. B) Variable Cost. C) Marginal Cost. D) Floatation Cost. Show Answer Correct Answer: D) Floatation Cost. 50. Proportion of debt and equity A) Capital budgeting. B) Capital structure. C) All the above. D) None of the above. Show Answer Correct Answer: B) Capital structure. 51. Manakah konsep financial planning bisnis yang benar? A) Mengelola budgeting untuk kepentingan boss. B) Mengelola budgeting pinjaman hutang. C) Mengelola budgeting untuk tiap pos kebutuhan bisnis. D) Mengelola pinjaman bank untuk kebutuhan personal. E) Mengelola arus penagihan piutang dengan bijak. Show Answer Correct Answer: C) Mengelola budgeting untuk tiap pos kebutuhan bisnis. 52. A significant cash outflow A) Corporate Capital Gains. B) Ordinary Corporate Income. C) Corporate Taxes. D) Barter. Show Answer Correct Answer: C) Corporate Taxes. 53. Rasio untuk mengukur efektivitas operasi perusahaan dalam menghasilkan keuntungan adalah: A) Net Profit Margin. B) Liquidity Ratio. C) Benefit Cost Ratio. D) Debt to Asset Ratio. Show Answer Correct Answer: A) Net Profit Margin. 54. What is Expenditure? A) Money spent on goods, services, or obligations. B) Money saved. C) Money borrowed. D) Money earned. Show Answer Correct Answer: A) Money spent on goods, services, or obligations. 55. What is the purpose of capital reserves? A) To increase liabilities. B) To reduce expenses. C) To create financial stability. D) To ignore financial planning. Show Answer Correct Answer: C) To create financial stability. 56. Fee paid for borrowing money A) Interest. B) Credit. C) Debit. D) Tax. Show Answer Correct Answer: A) Interest. 57. What is an emergency fund and why is it important? A) A checking account for daily expenses. B) A retirement fund for long-term savings. C) An emergency fund is a savings account for unexpected expenses, and it is important for financial security and avoiding debt. D) A loan to cover unexpected costs. Show Answer Correct Answer: C) An emergency fund is a savings account for unexpected expenses, and it is important for financial security and avoiding debt. 58. Which of the following is not the cause of under capitalization? A) Maintaining high standards of efficiency. B) Conservative dividend policy. C) Provides not enough depreciation to the fixed assets. D) Desire of control and trading of equity. Show Answer Correct Answer: C) Provides not enough depreciation to the fixed assets. 59. What is the formula for Merchandise Inventory Turnover Ratio? A) Average Merchandise Inventory/Cost of Goods Sold. B) Cost of Goods Sold/Merchandise Inventory. C) Merchandise Inventory/Cost of Goods Sold. D) Cost of Goods Sold/Average Merchandise Inventory. Show Answer Correct Answer: D) Cost of Goods Sold/Average Merchandise Inventory. 60. Yang bukan merupakan bagian dari Laporan Keuangan adalah A) Laporan Laba Rugi (Income Statement). B) Laporan Arus Kas (Cash Flow Statement). C) Laporan Modal kerja (Net working Capital Statement). D) Laporan Neraca (Balance Sheet). Show Answer Correct Answer: C) Laporan Modal kerja (Net working Capital Statement). ← 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