Class 12 Business Studies Chapter 9 Financial Management Quiz 29 (60 MCQs)

Quiz Instructions

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1. According to International Accounting Standards(IAS 1) the objective of general purpose financial statements is to provide information about the financial position, financial performance, and cash flows of an entity that is useful to a wide range of users in making economic decisions.
2. The cost of equity share capital is greater than the cost of debt because .....
3. For a company, ke = 16%, kd = 8%, kp = 10%, weights are 0.5, 0.3, 0.2 respectively. Find WACC.
4. Costs that changedisproportionatelywith changes inoutput levels.
5. Average U.S. wages in 1990 were $ 28, 960, far larger than the average wage in 1930 of $ 1, 970. What was the average annual increase in wages over this 60-year period?
6. Safe mode by which firms perform worldwide business is
7. Which of the following cannot be the reason for any company to offer themselves for a sale.
8. Financial management contributes to organizational success by:
9. Explain the concept of working capital in entrepreneurial finance.
10. Profitability refers to:
11. Yang bukan termasuk ke dalam operating expenses adalah
12. Which among the following figures is not relevant while calculating the cost of the redeemable preference shares?
13. Which financial concept refers to the separation of ownership and control in a corporation?
14. Which of the following is considered as cash inflow from the point of view of Lessor?
15. Which of the following is a significant challenge in financial management?
16. Leverage refers to the effects that variable costs have on the returns that shareholders earn
17. It pertains to the ability of the firm to yield a sufficient amount of return on company sales asset and invested capital.
18. What does the term 'APR' stand for in finance?
19. A B C analysis is useful for analyzing the inventories?
20. .... is a motive of holding cash?
21. Short term or current assets Decisions are known as:
22. Which of the following is the characteristics of the money market instruments?
23. Optimal capital structure consists of both the mix of debt and equity
24. A new project being considered by BLW Co would require 1, 000 hours of skilled labour. The current workforce is already fully employed but more workers can be hired in at a cost of $ 20 per hour. The current workers are paid $ 15 per hour on a project that earns a contribution of $ 10 per hour.What is the relevant cost of labour to be included in the project appraisal?
25. Jose wants to buy a new pair of Air Jordan 11's. They cost $ 300. He wants to buy them in 4 months. How much money should he save each month in order to buy the shoes?
26. The Appropriate objectives of enterprises is
27. The cost of equity is higher than cost of debt because:
28. What does the term 'risk-adjusted discount rates' refer to?
29. Didalam Analisa Laporan Keuangan ada beberapa alat analisa, yaitu sbb:
30. Full form of PAC-
31. Current Ratio is computed as:
32. Where do you put your signature on a check you just wrote?
33. What is the purpose of financial planning?
34. Which of the following is the wrong key component in SMART financial goals?
35. The following are all methods of investment appraisal, EXCEPT
36. Minimum rate of return that a project must earn to increase firm value
37. Speed at which a firm converts various accounts into sales or cash
38. The net profits decision has to be made by the finance manager. This can be done in two ways:Dividend declaration or Retained profits
39. It is the increase in shareholders' equity in harmony with the objectives associated with clients, workers and other interest groups.
40. This is the money that is spend on goods, services, and bills.
41. Shriram Industries Ltd. issued 10, 000, 10% Debentures of Rs.100 each. The tax rate is 50%. what would be the after-tax cost of debt if the debentures are issued at a discount of 10%?
42. Which of the following statements are correct? (1) Capital market securities are assets for the seller but liabilities for the buyer (2) Financial markets can be classified into exchange and over-the-counter markets (3) A secondary market is where securities are bought and sold by investors
43. In NC the insurances required by all people are
44. Two projects intersect, in terms of NPV, at a discount rate labeled the .....
45. Which term describes net income reinvested in the firm?
46. A company is evaluating an investment project with the following forecast cash flows:Time 0 1 2 3 4Cash flow ($ m) (6.5) 2.4 3.1 2.1 1.8Using discount rates of 15% and 20%, what is the internal rate of return of the investment project? (to one decimal place)
47. Q3) Financial structure refers to .....
48. ..... are documents that are used to report information about the business at the end of the accounting cycle.
49. What do you mean by indifference point?
50. Means of transferring ownership
51. What is the main objective of corporate planning?
52. Which of the following is included in a complete set of financial statements?
53. "Needs" are things you must have to survive, while "wants" are things you desire but can live without
54. Calculate the present value of Rs.1, 000 to be received at the end of 8 years. Assume an interest rate of 7%.
55. Mm approach assumes
56. Nominal interest rates are the sum of two major components. These components are .....
57. The method that converts the amount of present cash into an amount of cash of equivalent value in future is
58. One way to prepare and file your federal income tax return is online. Filing your taxes online is called .....
59. Data analytics tools can improve financial decision-making
60. It is anything generally accepted as a means of paying for goods and services and for paying off debts or liabilities.