This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 18 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Production is 72000 units per anum. Credit allowed to debtors is 3 months and Selling price of the goods is Rs 40. Calculate the amount of debtors for estimation of Working Capital. A) Rs 7, 20, 000. B) Rs 2, 40, 000. C) Rs 72, 000. D) Rs 86, 40, 000. Show Answer Correct Answer: A) Rs 7, 20, 000. 2. Decrease in accounts payable A) Investing Activities. B) Operating ACtivities. C) Financing Activities. D) None of the above. Show Answer Correct Answer: B) Operating ACtivities. 3. A finance manager is responsible for maximizing the value of the utility owned by these people A) Supplier. B) Stockholder/investor. C) Creditor. D) Board of directors. Show Answer Correct Answer: B) Stockholder/investor. 4. All of the following are variables that can be manipulated to affect monetary policy except- A) Credit restrictions achieved via the banking system. B) Government expenditure on goods and services. C) The volume of money in circulation. D) The rate of interest. Show Answer Correct Answer: B) Government expenditure on goods and services. 5. The company issuing or producing the traveler's check A) Issuer or obligor. B) Payee. C) Purchaser. D) Agent. Show Answer Correct Answer: A) Issuer or obligor. 6. Working Capital adalah ..... A) Revenue dikurangi COGS. B) Keuntungan yang diterima pemilik. C) Current Asset dikurangi Current Liability. D) Modal yang disetor di awal. Show Answer Correct Answer: C) Current Asset dikurangi Current Liability. 7. EBIT= Rs.1, 50, 000; Financial Leverage= 1.2; EBT =? A) Rs.1, 25, 000. B) Rs.1, 50, 000. C) Rs.2, 00, 000. D) Rs.3, 00, 000. Show Answer Correct Answer: A) Rs.1, 25, 000. 8. Rumus Dasar dari Pembukuan adalah A) Modal = Kewajiban. B) Asset = Kewajiban. C) Kewajiban = Asset + Modal. D) Asset = Kewajiban + Modal. Show Answer Correct Answer: D) Asset = Kewajiban + Modal. 9. An obligation of repayment owed by one party (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the original loan amount plus interest A) Debit. B) Loan. C) Debt. D) Credit. Show Answer Correct Answer: C) Debt. 10. Your department at work places $ 10, 000 every year-end into an account earning 5%. The money is used when the corporate office fails to fully finance your profitable projects. The money has not been touched since the first deposit was made exactly five years ago. If the most recent deposit was made today, how much money is currently in the account? A) $ 68, 219.13. B) $ 68, 119.13. C) $ 68, 019.13. D) $ 60, 000.00. Show Answer Correct Answer: C) $ 68, 019.13. 11. Working capital refers: A) Excess of Current Assets over Current Liabilities. B) Excess of Fixed Assets over Current Liabilities Fixed Cost. C) Excess of Current Assets over Fixed Assets. D) Excess of Current Liabilities over Current Assets. Show Answer Correct Answer: A) Excess of Current Assets over Current Liabilities. 12. Didalam mendanai Modal Kerjauntuk Bisnis, kita mengenal istilah Capital Structur (Struktur Modal), yaituisinya terdiri atas: A) Jawaban a dan b adalah benar. B) Jawabana dan b adalah salah. C) Hutang Jangka Panjang dan Hutang Obigasi/Saham. D) Modal. Show Answer Correct Answer: A) Jawaban a dan b adalah benar. 13. What is an example of long-term finance? A) Credit card. B) Personal loan. C) Car lease. D) Mortgage. Show Answer Correct Answer: D) Mortgage. 14. What is the definition of risk management in finance? A) A method for predicting stock market trends. B) The act of investing in high-risk assets. C) Risk management in finance is the process of identifying, assessing, and mitigating financial risks. D) The process of maximizing financial gains. Show Answer Correct Answer: C) Risk management in finance is the process of identifying, assessing, and mitigating financial risks. 15. What should financial planning include? A) Only investment opportunities. B) Tax planning. C) Employee training. D) Marketing strategies. Show Answer Correct Answer: B) Tax planning. 16. The movement of money from lender to borrower and back again is known as ..... A) The cycle of money. B) Corporate finance. C) Money laundering. D) The circle of life. Show Answer Correct Answer: A) The cycle of money. 17. What is the primary consideration in project planning for capital expenditure? A) Creation of new products. B) Efficient use of resources. C) Acquisition of new property. D) Acquisition of new entities. Show Answer Correct Answer: C) Acquisition of new property. 18. Variable cost per unit. A) Changes with the growth of the firm. B) Remains constant irrespective of the level of output. C) Varies with the level of output. D) Does not change with volume of production. Show Answer Correct Answer: B) Remains constant irrespective of the level of output. 19. A company designs products in one country, sources components abroad, and assembles elsewhere. What impact and rationale most likely result from this global chain? A) Decreased innovation from broader competition. B) Reduced market access and brand visibility. C) Improved cost competitiveness and efficiency. D) Lower efficiency due to fragmented production. Show Answer Correct Answer: C) Improved cost competitiveness and efficiency. 20. Cost is a feature of a financial plan? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 21. The income statement is sometimes called a profit and loss statement. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 22. What is the risk-return tradeoff in investing? A) The risk-return tradeoff is the balance between the potential risk and potential return of an investment. B) The risk-return tradeoff is the process of eliminating all risks in investing. C) The risk-return tradeoff is the guarantee of high returns with no risk. D) The risk-return tradeoff only applies to stocks and not other investments. Show Answer Correct Answer: A) The risk-return tradeoff is the balance between the potential risk and potential return of an investment. 23. When the fixed assets are available on rent the need for fixed capital is ..... A) More. B) Less. C) Nil. D) Excessive. Show Answer Correct Answer: B) Less. 24. The financial institutions are established by both State and central government A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 25. A finance manager has to make estimation with regards to capital requirements of the company A) Estimation of Capital Requirements. B) Determination of Capital Composition. C) All the above. D) None of the above. Show Answer Correct Answer: A) Estimation of Capital Requirements. 26. Which of the following include Routine Finance Functions? A) Supervision over Cash Receipts. B) Payment Of Cash. C) Filling (Record Keeping). D) All of the Above. Show Answer Correct Answer: D) All of the Above. 27. Doing this means my money is gone for good. I won't get it back. A) Investing. B) Earning. C) Saving. D) Spending. Show Answer Correct Answer: D) Spending. 28. Retained earnings refer to the portion of income reinvested in the firm rather than distributed as dividends. A) False. B) Only in non-profit organizations. C) True. D) Only in profitable companies. Show Answer Correct Answer: C) True. 29. This decision is about the quantum of finance to be raised from various long-term sources. A) Dividend decision. B) Capital budgeting decision. C) Financing decision. D) Investment decision. Show Answer Correct Answer: C) Financing decision. 30. Which of the following is not true of cash budget? A) Cash budgets indicates timing of short term borrowing. B) Cash budget is based on accrual concept. C) Cash budget is based on cash flow concept. D) All of these. Show Answer Correct Answer: B) Cash budget is based on accrual concept. 31. Present value of Rs. 1 received after 2 years with 10% discounting rate. A) 0.628. B) 0.826. C) 0.286. D) 0.268. Show Answer Correct Answer: B) 0.826. 32. Operating objective for financial management is to A) Maximise profit. B) Maximise wealth. C) Both. D) None. Show Answer Correct Answer: B) Maximise wealth. 33. Which of the following assets is not considered as current asset: A) Stock. B) Cash. C) Furniture. D) Goodwill. Show Answer Correct Answer: D) Goodwill. 34. What is the purpose of liquidity decisions in finance? A) Provide financial services. B) Manage day-to-day finance requirements. C) Maximize shareholder wealth. D) Make investment decisions. Show Answer Correct Answer: B) Manage day-to-day finance requirements. 35. Property that a borrower forfeits to the bank providing the loan if he or she defaults on the loan. A) Collateral. B) Unsecured Loan. C) Secured Loan. D) Home. Show Answer Correct Answer: A) Collateral. 36. Issued by a bank and like a check can be used like money A) Money Order. B) Warehouse Receipt. C) Bank Draft. D) Commodity Money. Show Answer Correct Answer: C) Bank Draft. 37. Commercial papers A) Short term debt. B) Long term debt. C) All the above. D) None of the above. Show Answer Correct Answer: A) Short term debt. 38. Which situation shows a financially responsible citizen? A) Hiding your money under your mattress. B) Throwing money out the window. C) Purchasing an expensive automobile you CANNOT afford. D) Only buying items that you CAN afford. Show Answer Correct Answer: D) Only buying items that you CAN afford. 39. How many percentages should a person save from their monthly income?Berapa peratuskah seseorang harus melakukan simpanan daripada gaji bulanannya? A) 20%. B) 8%. C) 5%. D) 10%. Show Answer Correct Answer: D) 10%. 40. What can financial decisions impact? A) Only production. B) Only marketing. C) Only human resources. D) All departments of a company. Show Answer Correct Answer: D) All departments of a company. 41. What are the alternative forms of business organizations? A) Public finance, corporate finance, and personal finance. B) Investments, capital markets, and financial economics. C) Sole proprietorship, partnership, and corporation. D) Managing assets and raising capital. Show Answer Correct Answer: C) Sole proprietorship, partnership, and corporation. 42. ..... security is known as variable income security. A) Debentures. B) Preference shares. C) Equity shares. D) None of these. Show Answer Correct Answer: C) Equity shares. 43. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960If total current liabilities amounted to 19, 900, Net Sales for the present year amounted to 480, 000 and the ending receivables totaled to 16, 500. What is the average collection period? A) 15 days. B) 12 days. C) 13 days. D) 14 days. Show Answer Correct Answer: B) 12 days. 44. Maximization of shareholder wealth is a concept in which A) Increased earnings is of primary importance. B) Profits are maximized on a quarterly basis. C) All earnings are paid as dividends to common stockholders. D) Optimally increasing the long-term value of the firm. Show Answer Correct Answer: D) Optimally increasing the long-term value of the firm. 45. Berikut merupakan bagian dari piramida mengatur keuangan, kecuali: A) Pendapatan. B) Managemen Utang. C) Dana Darurat. D) Protection. Show Answer Correct Answer: A) Pendapatan. 46. Which one out of following is NOT an intermediary in IPO process? A) Mutual funds. B) Underwriter. C) Book runner lead manager. D) Self-Certified Syndicate Bank. Show Answer Correct Answer: A) Mutual funds. 47. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960If total liabilities amounted to 598, 030 and total assets amounted to 1, 014, 082. What is the debt ratio? A) 58.06%. B) 58%. C) 59%. D) 59.06%. Show Answer Correct Answer: D) 59.06%. 48. NI and n o i approach has been suggested by A) F w Taylor. B) David Durand. C) Marshall edgeworth. D) Fissure. Show Answer Correct Answer: B) David Durand. 49. Pedro is saving for a car and needs $ 8, 000, he will save for 3 years. How much does he need to save each month to make his goal? A) $ 225.00. B) $ 222.22. C) $ 250.00. D) $ 230.00. Show Answer Correct Answer: B) $ 222.22. 50. 17-The following cash flow are providedYear 0 = Cash outflow = $ 170, 000Year 1 = Cash Inflow = $ 20, 000, Year 2 = $ 35, 000, Year 3 = $ 100, 000, Year 4 = $ 250, 000 Calculate NPV? If Require Rate Return r= 15% A) B = 81, 500. B) C = 82, 546. C) A = 80, 000. D) D = 82, 500. Show Answer Correct Answer: B) C = 82, 546. 51. What are the key components of a balance sheet? A) Debt, credit, and investment. B) Assets, liabilities, and equity. C) Cash, inventory, and accounts receivable. D) Income, expenses, and profit. Show Answer Correct Answer: B) Assets, liabilities, and equity. 52. Financial management helps IS professionals determine: A) Which servers to buy. B) The most cost-effective software options. C) The right staffing levels. D) All of the above. Show Answer Correct Answer: D) All of the above. 53. Your credit score is a number that banks and credit card companies use to find out how likely you are to pay back money on time. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 54. Which of the following functions of the financial system channelizes the savings from the savers to the producers in the economy? A) Payment function. B) Liquidity function. C) Financial Intermediation function. D) Risk function. Show Answer Correct Answer: C) Financial Intermediation function. 55. Financial analysis and reporting: A) Provides insights into a company's financial health, performance, and profitability. B) Helps investors make informed investment decisions. C) Both of the above. D) Neither of the above. Show Answer Correct Answer: C) Both of the above. 56. Liquidity decision often relates to ..... A) Current liabilities and non-current assets. B) Current assets and non-current liabilities. C) Non-current assets and non-current liabilities. D) Current assets and current liabilities. Show Answer Correct Answer: D) Current assets and current liabilities. 57. Which statement best captures the scope of international finance as described, focusing on cross-border activities and decision drivers? A) It measures cultural adoption of global products and festivals. B) It focuses only on international marketing strategies and branding. C) It examines cross-border transactions and exchange-rate influenced decisions. D) It studies domestic budgeting techniques within single-country firms. Show Answer Correct Answer: C) It examines cross-border transactions and exchange-rate influenced decisions. 58. The agency problem is a driving force behind the growing importance attached to sound corporate governance. In this context, who are the agents? A) Shareholders. B) Managers. C) Auditors. D) None of the above. Show Answer Correct Answer: C) Auditors. 59. What does the Debt-to-Income Ratio measure? A) The total amount of debt. B) The total income. C) The interest rate on loans. D) Monthly debt payments in relation to their monthly income. Show Answer Correct Answer: D) Monthly debt payments in relation to their monthly income. 60. Which type of account typically offers the highest interest rates? A) Money market account. B) Checking account. C) Savings account. D) Certificate of Deposit (CD). Show Answer Correct Answer: D) Certificate of Deposit (CD). ← 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