This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 25 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. You must file your federal and state income taxes by April ..... A) 25th. B) 1st. C) 15th. D) None of the above. Show Answer Correct Answer: C) 15th. 2. Long Term Investment Decisions are known as A) Capital Structure Decisions. B) Dividend Decisions. C) Capital Budgeting Decisions. D) Working Capital Management Decisions. Show Answer Correct Answer: C) Capital Budgeting Decisions. 3. Salah satu contoh pengeluaran kas dari aktivitas pendanaan adalah A) Pembayaran dividend. B) Pembayaran pajak. C) Pembayaran Gaji. D) Pembelian kendaraan. Show Answer Correct Answer: A) Pembayaran dividend. 4. What is a purpose of financial analysis? A) Identifying areas of cost reduction. B) Calculating the return on investment. C) Determining the value of a business. D) Developing long-term growth strategies. Show Answer Correct Answer: B) Calculating the return on investment. 5. What percentage of Vinamilk's revenue in 2021 came from domestic sales? A) The information is not provided. B) 84.05%. C) 10.5%. D) 0.7%. Show Answer Correct Answer: B) 84.05%. 6. What are Variable Expenses? A) Fixed costs. B) One-time costs. C) Costs that vary from month to month (e.g., utilities, groceries). D) Costs that do not change. Show Answer Correct Answer: C) Costs that vary from month to month (e.g., utilities, groceries). 7. Hal Ini adalah salah satu bagian dari Definisi Laporan Keuangan, kecuali: A) Merupakan informasi Historis. B) Merupakan informasi masa depan. C) Hasil akhir dari siklus akuntansi. D) Dicatat dengan nilai Uang. Show Answer Correct Answer: B) Merupakan informasi masa depan. 8. If the K is cost of debt and t is marginal tax rate, the after-tax cost of debt is best represented by the formula A) K(1-t). B) K/(1-t). C) K(t). D) K/t. Show Answer Correct Answer: A) K(1-t). 9. One of the main challenges in performing a Discounted Cash Flow (DCF) valuation for a new, long-term airport infrastructure project is: A) The low discount rate used for airports. B) Accurately forecasting traffic and non-aeronautical revenues over a 30+ year period. C) The difficulty in calculating the terminal's salvage value. D) The lack of standardized accounting principles. Show Answer Correct Answer: B) Accurately forecasting traffic and non-aeronautical revenues over a 30+ year period. 10. What is the formula for Earnings per share (EPS)? A) Net Income/Ordinary Shares. B) Net Profit/Shares. C) Net Income/Shares. D) Net Income/Shares Oustanding. Show Answer Correct Answer: D) Net Income/Shares Oustanding. 11. Facilitates the sale of short-term debt securities by deficit units to surplus units. A) Derivation Securities. B) Money Market. C) Valuation of Securities. D) Capital Market. Show Answer Correct Answer: B) Money Market. 12. Operating Leverage indicates the impact of changes in sales on operating income. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 13. Permanent working capital is funded using A) Long-term funds. B) Working capital loans. C) Bank Overdraft. D) Commercial Papers. Show Answer Correct Answer: A) Long-term funds. 14. What is the cost of raising funds called? A) Marginal Cost. B) Flotation Cost. C) Variable Cost. D) Fixed Cost. Show Answer Correct Answer: B) Flotation Cost. 15. A condition when the available capital is not enough to spend the business called ..... A) Active spending. B) Inadequate expenditure. C) Excessive spending. D) Passive expenditure. Show Answer Correct Answer: B) Inadequate expenditure. 16. The financing decision of financial management is mainly concerned with: A) Deciding on dividend payouts. B) Determining the best mix of debt and equity. C) Selecting investment opportunities. D) Preparing accounting statements. Show Answer Correct Answer: B) Determining the best mix of debt and equity. 17. Logan has recently started a small business and Sam, a business analyst, is helping him understand his financial performance. Sam wants to calculate the return on investment (ROI) for Logan's business. Which formula should he use? A) ROI = (Net Profit / Total Assets) * 100. B) ROI = (Net Profit / Total Revenue) * 100. C) ROI = (Net Profit / Initial Investment). D) ROI = (Net Profit / Initial Investment) * 100. Show Answer Correct Answer: D) ROI = (Net Profit / Initial Investment) * 100. 18. An organisation wanting to have more liquid assets would ..... A) Raise more amount of short term funds. B) Raise more amount of long term funds. C) No change im capital. D) None of the above. Show Answer Correct Answer: B) Raise more amount of long term funds. 19. Which of the following are financial intermediaries?(1) Venture capital organisation(2) Pension fund(3) Merchant bank A) 2 only. B) 1 and 3 only. C) 2 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: D) 1, 2 and 3. 20. Variable Working Capital refer to A) Working capital that remains fixed throughout the year. B) Temporary and fluctuating working capital that changes with business volume. C) Funds locked permanently in current assets. D) Funds used only for unexpected expenses. Show Answer Correct Answer: B) Temporary and fluctuating working capital that changes with business volume. 21. What is the present value of perpetual annuity of Rs. 1, 00, 000 p.a. at the discounting rate of 10%? A) Rs. 1, 00, 00, 000. B) Rs. 10, 00, 000. C) Rs. 10, 000. D) Rs. 1, 000. Show Answer Correct Answer: B) Rs. 10, 00, 000. 22. Working capital management consist of cash management, receivable management, short term financing decision and A) Total asset management. B) Fixed asset management. C) Inventory management. D) Equity management. Show Answer Correct Answer: C) Inventory management. 23. Which of the following financial statements provides information about a company's financial position at a specific point in time? A) Statement of cash flows. B) Income statement. C) Statement of retained earnings. D) Balance sheet. Show Answer Correct Answer: D) Balance sheet. 24. The role of the VP for Finance is to determine the appropriate capital structure of the company. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 25. ..... money paid by the borrower for the use of money that was loaned to him/her A) Loan. B) Interest. C) Debt. D) Income. Show Answer Correct Answer: B) Interest. 26. Which of the following is a type of merger? A) All of the above. B) Horizontal merger. C) Vertical merger. D) Conglomerate merger. Show Answer Correct Answer: A) All of the above. 27. Proteksi adalah hal yang sangat penting. Manakah di antara hal ini yang tidak termasuk ke dalam kategori proteksi keuangan? A) Asuransi. B) Meng-Hire Satpam di Rumah. C) Dana Darurat. D) None of the above. Show Answer Correct Answer: B) Meng-Hire Satpam di Rumah. 28. Multiple compounding period means A) Interest compounded more than once in a year. B) Interest is calculated for a number of years. C) Interest compounded anually. D) None of the above. Show Answer Correct Answer: A) Interest compounded more than once in a year. 29. Increase in finished goods inventory A) Financing Activity. B) Investing Activity. C) Operating Activity. D) None of the above. Show Answer Correct Answer: C) Operating Activity. 30. Which of the following has the highest cost of Capital? A) Preference Shares. B) Loans. C) Equity Shares. D) Bonds. Show Answer Correct Answer: C) Equity Shares. 31. Which principle states that higher potential returns come with higher risks? A) Time Value of Money. B) Liquidity Preference. C) Risk-Return Tradeoff. D) Budgeting. Show Answer Correct Answer: C) Risk-Return Tradeoff. 32. What is a creditor? A) The person that collects your possessions if you don't pay your debt. B) Someone who the loan or debt is owed to. C) All the above. D) None of the above. Show Answer Correct Answer: B) Someone who the loan or debt is owed to. 33. Which one is a type of Audit? A) Pre Audit. B) Post Audit. C) Concurrent Audit. D) Above All. Show Answer Correct Answer: D) Above All. 34. A person or organization that uses a product or service A) Debt. B) Interest. C) Economy. D) Consumer. Show Answer Correct Answer: D) Consumer. 35. Owner's equity is the owner's claim to the asset of the business. It is NEVER referred to as the owner's capital in the business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 36. What is the main goal of mergers and acquisitions? A) To eliminate all risks. B) To combine resources for greater efficiency. C) To reduce market share. D) To increase competition. Show Answer Correct Answer: B) To combine resources for greater efficiency. 37. What is the process of evaluating the amount of money necessary and determining the competition known as? A) Finance Functions. B) Financial Management. C) Role of Financial Manager. D) Financial Planning. Show Answer Correct Answer: D) Financial Planning. 38. Which of the following is NOT a function of a financial manager? A) Financial risk management. B) Financial report. C) Cash flow management. D) Product development. Show Answer Correct Answer: D) Product development. 39. Accrued Interest A) Debit. B) Credit. C) All the above. D) None of the above. Show Answer Correct Answer: B) Credit. 40. What is the difference between fundamental and technical analysis? A) Fundamental analysis focuses on intrinsic value; technical analysis focuses on price trends. B) Fundamental analysis is only for long-term investments; technical analysis is for short-term trades. C) Fundamental analysis ignores market trends; technical analysis focuses on company earnings. D) Fundamental analysis uses charts; technical analysis uses financial statements. Show Answer Correct Answer: A) Fundamental analysis focuses on intrinsic value; technical analysis focuses on price trends. 41. Mr. X takes a loan of rs 50000 from bank the rate of interest is 10% per annum. The first installment will be paid at the end of the year 5.Determine the amount of equal annual installment if mr. X wishes to repay the amount in 5 installments A) Rs 19500. B) Rs. 19400. C) Rs 19310. D) Nome of the above. Show Answer Correct Answer: C) Rs 19310. 42. Which of the following is NOT an example of annuity cash flows? A) Regular equal monthly rent payments. B) Equal annual deposits into a retirement account. C) The $ 50 of gasoline you put into your car every two weeks on pay day. D) All of the examples above are annuity cash flows. Show Answer Correct Answer: D) All of the examples above are annuity cash flows. 43. Which THREE of the following methods of financing the purchase of a non-current asset have an impact on the gearing ratio of a business?1. Short-term bank loan2. Surplus cash from the business bank account3. Ten year finance lease4. Introduction of new ordinary share capital5. Seven year Eurobond A) 1, 3, 5. B) 2, 3, 4. C) 3, 4, 5. D) 1, 2, 3. Show Answer Correct Answer: C) 3, 4, 5. 44. Which of the following represents a long-term financial management decision? A) Recording daily sales. B) Determining next month's cash budget. C) Purchasing a new factory. D) Paying current liabilities. Show Answer Correct Answer: C) Purchasing a new factory. 45. What is the main purpose of Personal Financial Management? A) To increase taxes. B) To run a company. C) To manage personal income and expenses. D) To borrow money. Show Answer Correct Answer: C) To manage personal income and expenses. 46. Without ..... no business planning can be successfully implemented. A) Dividend decision. B) Investment decision. C) Both of above. D) Financial planning. Show Answer Correct Answer: D) Financial planning. 47. You can usually cash your check at your own bank without paying an extra fee A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 48. ..... is the lifeblood of a business. A) Finance. B) Financial Management. C) Finance Manager. D) Corporate Financial Management. Show Answer Correct Answer: A) Finance. 49. What is the primary purpose of financial planning in a business? A) To increase taxes. B) To ensure the business has enough employees. C) To estimate future financial needs and allocate resources effectively. D) To comply with government regulations. Show Answer Correct Answer: C) To estimate future financial needs and allocate resources effectively. 50. Making an investment in long term assets is A) Capital Budgeting. B) Capital Structure. C) All the above. D) None of the above. Show Answer Correct Answer: A) Capital Budgeting. 51. Silver, gold, etc. A) Metals. B) Coin. C) Mint. D) Coinage. Show Answer Correct Answer: A) Metals. 52. You buy detergent for $ 11.98 for 64 ounces, what is the unit price? A) .19. B) .17. C) .195. D) .20. Show Answer Correct Answer: A) .19. 53. Working capital refers to excess of current assets over current liabilities. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 54. Which of the following refers to corporation A) Unlimited liability. B) More than one person enter the business. C) Decision making will be done by the board of directors. D) Tax paid by individual owners. Show Answer Correct Answer: C) Decision making will be done by the board of directors. 55. Banks borrow in call money market to A) Meet the Cash Reserve Ratio (CRR). B) Invest in high yielding securities. C) Give loans. D) Invest in stock market. Show Answer Correct Answer: A) Meet the Cash Reserve Ratio (CRR). 56. What is capital budgeting? A) The process of evaluating long-term investment projects. B) The process of preparing annual operating budgets. C) The allocation of working capital. D) The management of current assets. Show Answer Correct Answer: A) The process of evaluating long-term investment projects. 57. Which technique of capital budgeting consider time value of money? A) IRR. B) NPV. C) PI. D) All of the above. Show Answer Correct Answer: D) All of the above. 58. It is the study of how individuals or businesses evaluate investment opportunities, business proposals and business projects, and raise capital to fund them. A) Evaluating Investments. B) Financial Management. C) Finance. D) Financial Institution. Show Answer Correct Answer: C) Finance. 59. Insolvency happens when ..... A) The firm can meet its non-current obligations fast enough. B) The firm cannot meet its non-current obligations fast enough. C) The firm cannot meet its current obligations fast enough. D) The firm can meet its current obligations fast enough. Show Answer Correct Answer: C) The firm cannot meet its current obligations fast enough. 60. Debts to be paid more than one year from now are claims against the firm's assets:in other words, they are long-term liabilities. These claims are from ..... who have provided capital to the firm but whose entire repayment is not due during the coming year or operating cycle. A) Banks and bondholders. B) Banks and stockholders. C) Stockholders and bondholders. D) All long-term lenders. Show Answer Correct Answer: A) Banks and bondholders. ← 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