This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 21 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to Solomon, financial management is concerned with A) Marketing decisions. B) Efficient use of capital funds. C) Production planning. D) Personnel management. Show Answer Correct Answer: B) Efficient use of capital funds. 2. Which activity involves financial decision making? A) Deciding to buy clothes. B) Deciding whether to save or invest. C) Choosing a party outfit. D) None. Show Answer Correct Answer: B) Deciding whether to save or invest. 3. What are the benefits of financial management training for individuals? A) It helps to increase self-confidence. B) It provides people with a better understanding of investment concepts. C) It helps to understand how to make wise decisions with money. D) It enhances digital literacy. Show Answer Correct Answer: C) It helps to understand how to make wise decisions with money. 4. Susan packages cotton candy at the fair. If she can package 400 packages in 8 hours, what is her hourly production rate? A) 50. B) 48. C) 46. D) 52. Show Answer Correct Answer: A) 50. 5. Modern approach focus on ..... A) Wise use of funds. B) Outsiders looking. C) Merger. D) None of these. Show Answer Correct Answer: A) Wise use of funds. 6. Worldwide trade is A) Buying goods from abroad. B) Selling goods to abroad. C) Paying foreign currency. D) All of above. Show Answer Correct Answer: D) All of above. 7. Which one is not the responsibilities of DDO? A) Disbursement. B) Reporting. C) Auditing. D) Drawing. Show Answer Correct Answer: C) Auditing. 8. Which of the following is studied with the help of operating leverage A) Analysis of credit risk. B) Analysis of business risk. C) Analysis of financial risk. D) Analysis of production isk. Show Answer Correct Answer: B) Analysis of business risk. 9. The means by which a company is financed refers to the firm's ..... A) Accounts receivable management. B) Working capital management. C) Capital structure. D) Capital budgeting. Show Answer Correct Answer: C) Capital structure. 10. The payback period is the time required to: A) Generate ROI. B) Earn target profit. C) Recover the initial investment. D) Cover total cost. Show Answer Correct Answer: C) Recover the initial investment. 11. Apakah Kegunaan Laporan Keuangan? A) Sebagai jobdesc bagian keuangan dan produksi. B) Sebagai parameter baik buruknya kondisi bisnis kita. C) Sebagai controling pengeluaran divisi marketing. D) Sebagai bentuk pertanggung jawaban kepada Customer. E) Sebagai hobi dikala senggang. Show Answer Correct Answer: B) Sebagai parameter baik buruknya kondisi bisnis kita. 12. Which one is classified as 'Assets'? A) Inventories. B) Bonds. C) Accounts payable. D) Common stock. Show Answer Correct Answer: A) Inventories. 13. If the "original price" a item is $ 49.99 and has a 25% discount, what is the new discounted sale price: A) $ 37.49. B) $ 12.50. C) $ 37.50. D) $ 12.4975. Show Answer Correct Answer: A) $ 37.49. 14. ..... Estimate the difference between the required rate of return and the growth rate A) Payout ratio. B) Dividend yield ratio. C) Retention ratio. D) Leverage ratio. Show Answer Correct Answer: B) Dividend yield ratio. 15. Financial Management is study-(I) Of the process of procuring and judicious use of financial resources(II) Undertaken to maximize the value of the firm/owners.Select the correct answer from the options given below. A) (I) only. B) (II) only. C) Both (I) and (II). D) Neither (I) nor (II). Show Answer Correct Answer: C) Both (I) and (II). 16. Which of the following aspects should not be included to create a long term financial plan? A) Interest rate. B) Personal health. C) Inflation rate. D) Ambition. Show Answer Correct Answer: D) Ambition. 17. Portfolio Investment is dealing in A) Same securities. B) Short term investment. C) Different security. D) None. Show Answer Correct Answer: C) Different security. 18. A hospital wants to implement an electronic health records system. Which financial metric helps compare options? A) Cost-Benefit Analysis. B) Payback Period. C) ROI. D) NPV (Net Present Value. Show Answer Correct Answer: A) Cost-Benefit Analysis. 19. It is a type of financial institution that specializes in offering savings accounts and originating home mortgages for consumers. A) Thrift Bank. B) Universal Bank. C) Rural Bank. D) Commercial Bank. Show Answer Correct Answer: A) Thrift Bank. 20. What type of financial instrument is an equity? A) Stock. B) Loan. C) Bond. D) Deposit. Show Answer Correct Answer: A) Stock. 21. Berikut ini merupakan jenis-jenis dari reksadana, kecuali: A) Reksadana syariah. B) Reksadana pasar uang. C) Reksadana Indeks. D) Reksadana pendapatan tetap. Show Answer Correct Answer: A) Reksadana syariah. 22. Leveraged Firm is one A) Without Debt. B) All Equity Firm. C) A Company with Debt and Equity. D) A company without equity and debt. Show Answer Correct Answer: C) A Company with Debt and Equity. 23. Which financial decision involves choosing between different projects to invest in? A) Dividend decision. B) Financing decision. C) Accounting decision. D) Investment decision. Show Answer Correct Answer: D) Investment decision. 24. What is the main focus of public finance? A) Budgeting, investing, and retirement planning. B) Government revenue, expenditure, and debt. C) Studying money and investments. D) Managing assets and raising capital. Show Answer Correct Answer: B) Government revenue, expenditure, and debt. 25. A report of a company's financial worth in terms of book value. It is broken into three parts to include a company's assets, liabilities, and shareholders' equity. A) Balance Sheet. B) Cashflow Statement. C) Income Statement. D) Statement of Changes in Equity. Show Answer Correct Answer: A) Balance Sheet. 26. Which action would help improve financial discipline? A) Invest in high-risk stocks without research. B) Create a budget and track expenses. C) Ignore all expenses and spend freely. D) Avoid tracking any financial activities. Show Answer Correct Answer: B) Create a budget and track expenses. 27. Choose the correct way to review and revise the progress of a financial plan. A) Financial management does not need regular review. B) Review effects of financial management on regular basis. C) Ask older people. D) Budget made must be followed despite the changing in income and needs. Show Answer Correct Answer: B) Review effects of financial management on regular basis. 28. How is gross profit calculated? A) By dividing revenue by expenses. B) By multiplying revenue by expenses. C) By subtracting total expenses from total income. D) By adding total revenue and total expenses. Show Answer Correct Answer: C) By subtracting total expenses from total income. 29. Capital that comes from the creditor, a debt for the company concerned is called ..... A) Own capital. B) Foreign capital. C) Company capital. D) Venture capital. Show Answer Correct Answer: B) Foreign capital. 30. How does net loss affect owner's equity? A) Increases. B) Indirectly. C) Decreases. D) No change. Show Answer Correct Answer: C) Decreases. 31. Cash flow is ..... A) The decrease but not increase in cash for the period. B) The net income for the period. C) The increase or decrease in cash for the period. D) The increase but not decrease in cash for the period. Show Answer Correct Answer: C) The increase or decrease in cash for the period. 32. IF THE SALES OF A FIRM IS RS 10, 00, 000 AND CONTRIBUTION IS RS 2, 00, 000 THEN VARIABLE COSTS ARE A) RS 8, 00, 000. B) RS 20, 00, 000. C) RS 12, 00, 000. D) RS 5, 00, 000. Show Answer Correct Answer: A) RS 8, 00, 000. 33. Increase in current assets or decrease in current liabilities increases the current ratio A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 34. A decision to acquire a new and modern plant to upgrade an old one is a: A) Financing decision. B) Working capital decision. C) Investment decision. D) None of the above. Show Answer Correct Answer: C) Investment decision. 35. Constant dividend per share policy is considered as A) Increasing dividend policy. B) Decreasing dividend policy. C) Stable dividend policy. D) None of the above. Show Answer Correct Answer: C) Stable dividend policy. 36. What is Net Income? A) The amount of income left after all expenses are deducted; also called 'take-home pay'. B) The total income before expenses. C) The total debt. D) The total savings. Show Answer Correct Answer: A) The amount of income left after all expenses are deducted; also called 'take-home pay'. 37. Financial ratios are used to: A) Provide insights into a company's liquidity, profitability, efficiency, and solvency. B) Aid in decision-making and performance evaluation. C) Track a company's financial performance over time. D) All of the above. Show Answer Correct Answer: A) Provide insights into a company's liquidity, profitability, efficiency, and solvency. 38. What does a positive NPV indicate? A) The project needs more investment. B) The project will break even. C) The project will add value to the firm. D) The project will lose money. Show Answer Correct Answer: C) The project will add value to the firm. 39. In managing the day-to-day needs of the business, it is always recommended that a financial manager do the following A) To pay their bills as late as possible and get liquid funds from receivables as quickly as possible. B) To pay their bills as quickly as possible and get liquid funds from receivables as late as possible. C) All the above. D) None of the above. Show Answer Correct Answer: A) To pay their bills as late as possible and get liquid funds from receivables as quickly as possible. 40. Dividend Decision is related to A) Right issue of share. B) Reinvestment requirement. C) Cash flow statement. D) None of the above. Show Answer Correct Answer: B) Reinvestment requirement. 41. When shareholders appoint financial managers to run firms and make investment decisions, this is called: A) Agency cost. B) Financing decision. C) Limited liability. D) Separation of ownership and control. Show Answer Correct Answer: D) Separation of ownership and control. 42. Which of the following argues that the value of levered firm is higher than that of the early word firm A) Net income approach. B) Net operating income approach. C) Mm model with taxes. D) Both a and C. Show Answer Correct Answer: D) Both a and C. 43. When you get a job you are required to complete a ..... form. A) W-4 and I-9. B) W-2 and I-9. C) 1040 and I-9. D) 1040 EZ Form and I-9. Show Answer Correct Answer: A) W-4 and I-9. 44. Individuals giving out small amounts of money to a project in return for something A) Peer-to-peer lending. B) Reward-based crowdfunding. C) Donation-based crowdfunding. D) None of the above. Show Answer Correct Answer: B) Reward-based crowdfunding. 45. ..... is the area of finance concerned with the activities of buying and selling financial assets such as stocks and bonds. A) Investments. B) Corporate finance. C) International finance. D) Financial markets and institutions. Show Answer Correct Answer: A) Investments. 46. Capital Budgeting decision is a- A) Short term. B) Daily routine work. C) Convertash. D) Long term. Show Answer Correct Answer: D) Long term. 47. Which of the following is not an active income? A) Salary. B) Commission. C) Allowance. D) Credit Card. Show Answer Correct Answer: D) Credit Card. 48. A weekly newspaper ad and a monthly lease fee for a credit card machine are both ..... A) Fixed costs. B) Variable costs. C) Variable expenses. D) Incidental needs. Show Answer Correct Answer: A) Fixed costs. 49. Siskiyou, Inc. has total current assets of $ 1, 200, 000; total current liabilities of $ 500, 000; and long-term assets of $ 800, 000. How much is the firm's Total Liabilities & Equity? A) $ 2, 500, 000. B) $ 1, 800, 000. C) $ 2, 000, 000. D) $ 1, 300, 000. Show Answer Correct Answer: C) $ 2, 000, 000. 50. Refers to the traditional and narrow approach, which aims to maximize the profit of the concern. A) Wealth Maximization. B) Wealth Minimization. C) Profit Minimization. D) Profit Maximization. Show Answer Correct Answer: D) Profit Maximization. 51. A business organization can obtain funds from- A) Issue of preference or equity share capital. B) Issue of debentures. C) Loan from banks and financial institution. D) All of the above. Show Answer Correct Answer: D) All of the above. 52. Which formula is used to measure the degree of operating leverage A) EBIT/CONTRIBUTION. B) Contribution/EBIT. C) EBIT/EBT. D) EBT/EBIT. Show Answer Correct Answer: B) Contribution/EBIT. 53. ..... decision are irreversible. A) Capital budgeting decision. B) Working capital decisions. C) Both A and B. D) None of these. Show Answer Correct Answer: A) Capital budgeting decision. 54. The concept that increases the return on equity shares with the change in capital structure of a company A) Trading on equity. B) Trading on debentures. C) Financial planning. D) Capital budgeting. Show Answer Correct Answer: A) Trading on equity. 55. Certificate of deposit is issued by A) (a) Mutual fund companies. B) (b) Reserve Bank of India. C) C) Large Corporate House. D) D) Commercial bank and development financial institution. Show Answer Correct Answer: D) D) Commercial bank and development financial institution. 56. Bagian dari laba bersih perusahaan yang didistribusikan kepada pemegang saham disebut sebagai? A) Modal Disetor. B) Laba Bersih. C) Laba Ditahan. D) Dividen. Show Answer Correct Answer: D) Dividen. 57. Financial reporting: A) Provides information about a company's financial performance to investors, creditors, and other stakeholders. B) Helps investors make informed investment decisions. C) Both of the above. D) Neither of the above. Show Answer Correct Answer: A) Provides information about a company's financial performance to investors, creditors, and other stakeholders. 58. It also deals with financial decisions such as when to introduce a new product, when to invest in new assets, when to replace existing assets, when to borrow from banks, when to issue stocks or bonds, when to extend credit to a customer, and how much cash to maintain. A) FINANCIAL MANAGEMENT. B) MANAGEMENT. C) All the above. D) None of the above. Show Answer Correct Answer: A) FINANCIAL MANAGEMENT. 59. What capital out of the following should be used in case of better cash flow A) Debt Capital. B) Equity Share Capital. C) Both of the above. D) None of these. Show Answer Correct Answer: A) Debt Capital. 60. Mengapa pengendalian utang dianggap langkah penting dalam pengelolaan keuangan? A) Karena utang dapat meningkatkan kekayaan. B) Karena utang tidak pernah menjadi masalah keuangan. C) Karena utang selalu menguntungkan. D) Karena utang dapat menjadi beban keuangan. Show Answer Correct Answer: D) Karena utang dapat menjadi beban keuangan. ← 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