This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 26 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960How much is the total current assets? A) 59, 850. B) 50, 890. C) Cannot be determined. D) 49, 850. Show Answer Correct Answer: A) 59, 850. 2. Which of the following are NOT usually considered to be agency costs? A) Costs of divergent behaviour by managers. B) Costs associated with giving share options to managers. C) Costs of obtaining a listing on the stock exchange. D) Costs of monitoring managers. Show Answer Correct Answer: C) Costs of obtaining a listing on the stock exchange. 3. Define the term 'capital budgeting'. A) A method for calculating short-term profits. B) Capital budgeting is the process of planning and managing a company's long-term investments. C) A technique for managing daily operational costs. D) A strategy for employee training and development. Show Answer Correct Answer: B) Capital budgeting is the process of planning and managing a company's long-term investments. 4. What is the monthly income in the sample budget provided? A) $ 1, 800. B) $ 1, 500. C) $ 1, 200. D) $ 1, 000. Show Answer Correct Answer: B) $ 1, 500. 5. The fixed capital requirement of a trading concern in comparison to a manufacturing concern will be A) Same. B) Not applicable. C) Less. D) More. Show Answer Correct Answer: C) Less. 6. What is the significance of a contingency plan in strategic planning? A) Minimizing operational disruptions. B) Maximizing employee satisfaction. C) Maximizing short-term profits. D) Minimizing tax liabilities. Show Answer Correct Answer: A) Minimizing operational disruptions. 7. An investment is lucrative when: A) The NPV is higher than cost of investment. B) The NPV to equity capital providers is higher than cost of equity. C) The equity IRR is higher than NPV to equity capital providers. D) The equity IRR is higher than cost of equity. Show Answer Correct Answer: D) The equity IRR is higher than cost of equity. 8. What does TCO (Total Cost of Ownership) include? A) Only upfront purchase costs. B) All costs over an asset's lifespan (e.g., maintenance, upgrades. C) Only maintenance fees. D) Only software licensing fees. Show Answer Correct Answer: B) All costs over an asset's lifespan (e.g., maintenance, upgrades. 9. 2 types of bank accounts are: A) Direct Deposit & Loan. B) Checking & Savings. C) Credit & Debit. D) Checking & Direct Deposit. Show Answer Correct Answer: B) Checking & Savings. 10. Average Sale Period can be computed by dividing A) 366 days/Accounts Receivable Turnover Ratio. B) 365 days/Inventory Turnover Ratio. C) 365 days/Accounts Receivable Turnover Ratio. D) 366 days/Inventory Turnover Ratio. Show Answer Correct Answer: B) 365 days/Inventory Turnover Ratio. 11. Decrease the purchase power A) Debenture. B) Inflations. C) Shares. D) Bonds. Show Answer Correct Answer: B) Inflations. 12. ..... :a bank account that allows you to access the money in your bank account by writing checks . It's the account that you will use to pay your bills. A) Checking Account. B) Budget. C) Loan. D) Savings Account. Show Answer Correct Answer: A) Checking Account. 13. A double ruled line under a balance means A) My pencil is broken. B) There is no more to be done on this balance. C) Adding and subtracting is needed. D) Accounts payable. Show Answer Correct Answer: B) There is no more to be done on this balance. 14. Which of the following transactions will improve the Current Ratio? A) Cash collected from Trade Receivables. B) Credit purchase of Goods. C) Payment to Trade Payables. D) Purchase of Goods for Cash. Show Answer Correct Answer: C) Payment to Trade Payables. 15. What is Financial Analysis? A) The calculation of taxes. B) The process of saving money. C) The creation of a budget. D) The process of reviewing financial documents to make informed business decisions. Show Answer Correct Answer: D) The process of reviewing financial documents to make informed business decisions. 16. Capital structure means the portion of current assets and current liabilities. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 17. Which of the following bond that carries high yield and high risk? A) Bearer Bond. B) Bunny Bond. C) Junk Bond. D) Zero Coupon Bond. Show Answer Correct Answer: C) Junk Bond. 18. It refers to the net inflows and outflows of money that a company or project has in a given period. A) Costs. B) Bills. C) Utility. D) Cash flow. Show Answer Correct Answer: D) Cash flow. 19. The capital structure decision involves: A) Determining the optimal mix of debt and equity financing. B) Minimizing the cost of capital. C) Maximizing shareholder value. D) All of the above. Show Answer Correct Answer: A) Determining the optimal mix of debt and equity financing. 20. What are the 2 types of credit cards? A) Private Label and General Label. B) Private Label and Public Label. C) Public Label and General Label. D) Plastic and Metal. Show Answer Correct Answer: A) Private Label and General Label. 21. An individual stock required return is equal to risk-free rate plus bearing risk premium is an explanation of A) Capital market line. B) Security market line. C) Beta market line. D) Aggregate market line. Show Answer Correct Answer: B) Security market line. 22. Agency theory examines the relationship between the A) Shareholders of the firm and the firm's investment banker. B) Owners of the firm and the managers of the firm. C) Board of directors and large institutional investors. D) Shareholders and the firm's transfer agent. Show Answer Correct Answer: B) Owners of the firm and the managers of the firm. 23. A firm starts its year with positive net working capital. During the year, the firm acquires more short-term debt than it does short-term assets. This means that: A) The ending net working capital must be negative. B) Accounts payable and inventory increased during the year. C) The ending net working capital can be positive, negative, or equal to zero. D) None of the above. Show Answer Correct Answer: C) The ending net working capital can be positive, negative, or equal to zero. 24. The rate of interest payable on a bond is also caled: A) Internal rate of return. B) Coupon rate. C) Yield to maturity. D) Effective rate of interest. Show Answer Correct Answer: B) Coupon rate. 25. If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be: A) 10% per annum. B) 10.38% per annum. C) 10.10 per annum. D) 10.25%per annum. Show Answer Correct Answer: B) 10.38% per annum. 26. What is the main function of a financial manager related to profit planning? A) To ignore a company's profits. B) To waste a company's profits. C) To ensure the proper use of a company's profits. D) To hide a company's profits. Show Answer Correct Answer: C) To ensure the proper use of a company's profits. 27. Which of the following government policies would NOT tend to raise national income over time? A) Increased expenditure on infrastructure. B) Tax cuts to encourage higher spending by consumers. C) Supply side policies to increase labour flexibility. D) Incentives to encourage personal saving. Show Answer Correct Answer: D) Incentives to encourage personal saving. 28. Participating in local causes or volunteering your time (and your staff's time) in community events says a lot about a company's sincerity. A) Volunteering. B) Ethical labor practices. C) All the above. D) None of the above. Show Answer Correct Answer: A) Volunteering. 29. A comprehensive financial plan should include wealth build-up, debts managements, insurance coverage, expenses and purification of property. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 30. The advantage of Debt-Financing is: A) Interest is Tax deductible. B) It reduces WACC. C) Does not dilute owners control. D) All of the above. Show Answer Correct Answer: D) All of the above. 31. Which financial goal is considered more comprehensive? A) A comprehensive financial goal. B) A specific savings plan. C) A short-term financial goal. D) A vague financial target. Show Answer Correct Answer: A) A comprehensive financial goal. 32. Berikut ini yang bukan kelebihan dari instrumen investasi dalam bentuk emas A) Lindung nilai terhadap inflasi. B) Aset safe haven. C) Tidak menghasilkan pendapatan. D) Likuiditas. Show Answer Correct Answer: C) Tidak menghasilkan pendapatan. 33. Which information is not included in the work sheet heading? A) The period covered. B) Accountant's name. C) Name of the accounting form. D) Business name. Show Answer Correct Answer: B) Accountant's name. 34. ..... is money supplied by investors, banks, or owners of a business. A) Equity. B) Income statement. C) Property. D) Capital. Show Answer Correct Answer: D) Capital. 35. Manajemen Keuangan Perusahaan mengatur A) Kebijakan Dividen. B) Kegiatan Investasi. C) Kegiatan Pendanaan. D) Semua jawaban di atas benar. Show Answer Correct Answer: D) Semua jawaban di atas benar. 36. The fixed capital requirement of a business involving labour intensive production will be A) Less. B) More. C) Same. D) None of the above. Show Answer Correct Answer: A) Less. 37. In which of the following lease types, the lessee has the option to purchase the asset at the end of lease period? A) Open ended lease. B) Tripartitle lease. C) Bipartitle lease. D) Close ended lease. Show Answer Correct Answer: A) Open ended lease. 38. What role does a financial advisor play in business decision-making? A) Provides legal advice. B) Offers marketing strategies. C) Manages human resources. D) Gives financial guidance. Show Answer Correct Answer: D) Gives financial guidance. 39. Which of the following is a spontaneous source of financing? A) Short-term loans. B) Bank Overdraft. C) Trade credit. D) Commercial paper. Show Answer Correct Answer: C) Trade credit. 40. Which of the following is LEAST likely to fall within financial management? A) A report is produced comparing actual results to budget. B) The dividend payment to shareholders is increased. C) Surplus assets are sold off. D) Funds are raised to finance an investment project. Show Answer Correct Answer: A) A report is produced comparing actual results to budget. 41. An asset that derives value from a contractual Claim is called as A) Real asset. B) Financial asset. C) Tangible asset. D) Fictitious asset. Show Answer Correct Answer: B) Financial asset. 42. Yang manakah antara berikut BUKAN komponen matlamat SMART? A) Capai. B) Boleh ubah. C) Realistik. D) Berdasarkan masa. Show Answer Correct Answer: B) Boleh ubah. 43. Goodwill is an ..... asset A) Intangible. B) Tangible. C) Quick. D) Current. Show Answer Correct Answer: A) Intangible. 44. ..... is concerned with optimal procurement as well as usage of finance. A) Financial management. B) Financial calculation. C) Financial planning. D) Financial loss. Show Answer Correct Answer: A) Financial management. 45. A financial goal must be specific, measurable, attainable, realistic and long time frame. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 46. A method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement. A) Ratio Analysis. B) Financial Benchmarking. C) Vertical Analysis. D) Horizontal Analysis. Show Answer Correct Answer: C) Vertical Analysis. 47. A capital budget is ..... A) A plan for company expenditure for the purchase of large assets such as property or manufacturing equipment. B) An estimate of cash inflows and outflows over a certain period. C) The total of the company budget that summarizes the proposed financial activities. D) None of the above. Show Answer Correct Answer: A) A plan for company expenditure for the purchase of large assets such as property or manufacturing equipment. 48. Sebutkan 4 Pos keuangan personal yang benar? A) 1. Kebutuhan Pribadi, 2. Tabungan/Investasi3. Entertaint 4. Hobi. B) 1. Kebutuhan Pribadi, 2. Cicilan3. Tabungan/Investasi 4. Traveling. C) 1. Kebutuhan Pribadi 2. Cicilan3. Kebutuhan Orang Tua 4. Kebutuhan Teman. D) 1. Tabungan/Investasi 2. Hobi3. Sosial 4. Cicilan. E) 1. Tabungan/Investasi 2. Kebutuhan Pribadi3. Sosial 4. Cicilan. Show Answer Correct Answer: E) 1. Tabungan/Investasi 2. Kebutuhan Pribadi3. Sosial 4. Cicilan. 49. What is statement that provide measurement of performance at some period time? Usually, provide amount of firm revenue and firm expense. A) Balance Sheet. B) Income Statement. C) Cash Flow. D) Risk Management Report. Show Answer Correct Answer: B) Income Statement. 50. How does the company's profitability compare to other companies? A) Management. B) Creditors. C) Investors. D) Finance. Show Answer Correct Answer: C) Investors. 51. Wealth Maximisation represents A) Risk. B) Return. C) Both. D) None. Show Answer Correct Answer: C) Both. 52. Apa keunggulan dari investasi properti? A) Properti tidak memerlukan perawatan khusus. B) Properti mudah dijual kembali. C) Properti tidak memerlukan perencanaan keuangan. D) Nilai properti cenderung stabil. Show Answer Correct Answer: D) Nilai properti cenderung stabil. 53. What is a stock repurchasing? A) When employees exercise stock options. B) When a company buys back its own shares from the market. C) When investors buy more shares from the market. D) When new shares are issued to the public. Show Answer Correct Answer: B) When a company buys back its own shares from the market. 54. Which of the following statements is/are correct?1. Securitisation is the conversion of illiquid assets into marketable securities2. The reverse yield gap refers to equity yields being higher than debt yields3. Disintermediation arises where borrowers deal directly with lending individuals A) 2 only. B) 1 and 3 only. C) 2 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: B) 1 and 3 only. 55. A long term investment decision is called A) Working capital decision. B) Financial decision. C) Capital budgeting decision. D) Dividend decision. Show Answer Correct Answer: C) Capital budgeting decision. 56. Diner Ltd. is a restaurant having 15 restaurants in Europe. They decide to take this number to 25 by opening 10 more restaurants in the major cities of Europe.What do you think will be the fixed capital here? A) High. B) Low. C) Can be high or low. D) None of the above. Show Answer Correct Answer: A) High. 57. Dividend decision is concerned with A) Only distribution of dividend to shareholders. B) How much to be retained in business. C) How much profit earned is distributed to shareholders and how much to be retained in the business. D) None of the above. Show Answer Correct Answer: C) How much profit earned is distributed to shareholders and how much to be retained in the business. 58. In the context of corporate finance, what does the term "agency relationship" refer to? A) The relationship between a company and its customers. B) The relationship between a company and its suppliers. C) The relationship between shareholders and management. D) The relationship between competitors in the market. Show Answer Correct Answer: C) The relationship between shareholders and management. 59. Backed by a government's or bank's promise to exchange it for a certain amount of silver or gold A) Representative Money. B) Fiat/Fiduciary Money. C) All the above. D) None of the above. Show Answer Correct Answer: A) Representative Money. 60. A company plans to enter a country with frequent policy shifts and occasional asset nationalizations. Which risk management approach is most appropriate? A) Assume taxes will remain unchanged. B) Rely on domestic demand forecasts only. C) Conduct thorough political risk assessment. D) Ignore sovereign risk to avoid delays. Show Answer Correct Answer: C) Conduct thorough political risk assessment. ← 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