This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 31 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is not a quick asset? A) Inventories. B) Notes receivable. C) Cash substitutes. D) NOT IN THE CHOICES. E) Cash equivalents. Show Answer Correct Answer: A) Inventories. 2. Taxes are fees that the government ..... people to pay in order to live and work in their state and the USA. A) Does not require. B) Requires. C) All the above. D) None of the above. Show Answer Correct Answer: B) Requires. 3. Which investment fund has invested in Byju's? A) Sequoia Capital India and Peak XV. B) Chan Zuckerberg Initiative. C) Deloitte company. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. Calculate Financial Leverage:Profit before depreciation Rs.80, 00, 000; Depreciation Rs.12, 50, 000; Tax rate 40%; EPS Rs.4; No. of equity shares Rs.3, 15, 000. A) 3.11. B) 1.33. C) 2.31. D) 3.21. Show Answer Correct Answer: D) 3.21. 5. What is the major objective of financial management? A) Profit Maximization. B) Wealth Maximization. C) None of them. D) None of the above. Show Answer Correct Answer: B) Wealth Maximization. 6. Working capital management is concerned with A) What long-term investments a firm should undertake. B) Managing a firm's capital stock. C) How a firm can best manage its cash flows as they arise in its day-to-day operations. D) How a firm should raise money to fund its investments. Show Answer Correct Answer: C) How a firm can best manage its cash flows as they arise in its day-to-day operations. 7. A Co, pays a dividend of 20% on the equity shares of face value of Rs.100 each. find out the expected market value of the equity share given that the dividend rate is expected to remain the same and the required rate of return is 15%. A) 133.33. B) 331.33. C) 333.11. D) 111.33. Show Answer Correct Answer: A) 133.33. 8. ROI measures the profitability of an investment A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 9. A proper balance between risk and return is ..... A) Liquidity. B) Profitability. C) Finance manager. D) Risk-Return trade off. Show Answer Correct Answer: D) Risk-Return trade off. 10. What journal entry will be passed for writing off preliminary expenses at the time of internal reconstruction? A) Debit Preliminary expenses and credit Profit&Loss A/c. B) Debit Preliminary expenses and Credit Capital reduction A/C. C) Debit Profit&Loss A/c and credit preliminary expenses A/c. D) Debtit Capital Reduction A/c and Credit preliminary expenses A/c. Show Answer Correct Answer: D) Debtit Capital Reduction A/c and Credit preliminary expenses A/c. 11. Which TERM refers to the numerical value needed to calculate the NPV of an investment? A) Discount factor. B) Discounted cash flows. C) Ratio. D) Net cash flow. Show Answer Correct Answer: A) Discount factor. 12. Which budgeting rule divides income into needs, wants and savings in percent in same sequence? A) 40/30/30 rule. B) 30/40/30 rule. C) 50/20/30 rule. D) 50/30/20 rule. Show Answer Correct Answer: D) 50/30/20 rule. 13. 'Fundamental concept in investing, it combines variety of assets to reduce risk' pernyataan tersebut merupakan prinsip keuangan 'diversifikasi'. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 14. What is the primary purpose of financial management? A) To maximize sales revenue. B) To manage human resources effectively. C) To plan, organize, control, and monitor financial resources for organizational objectives. D) To develop new products and services. Show Answer Correct Answer: C) To plan, organize, control, and monitor financial resources for organizational objectives. 15. Which of the following is component in cash receipt. A) Acquire fixed asset. B) Dividend received. C) Wages. D) Purchasing materials. Show Answer Correct Answer: B) Dividend received. 16. The shareholders receiving a stock dividend receives A) A share of common stock of equal value to their existing share of common stock. B) Cash. C) Additional shares of common stock and cash. D) Right share. Show Answer Correct Answer: D) Right share. 17. Financial Structure represents A) Debt and Equity. B) Equity. C) Equity and Liabilities. D) Equity, Liabilities, and Assets. Show Answer Correct Answer: D) Equity, Liabilities, and Assets. 18. Operating leverage occurs due to the existing of ..... in the firm A) EBIT. B) Fixed cost. C) Variable cost. D) Operating cost. Show Answer Correct Answer: B) Fixed cost. 19. A manufacturing company has credit sales of $ 10 million. It has a gross profit margin of 65%. Payable days is 25 days (assume 365 days per year), Receivables days is 42 days and the operating cycle is 80 days.What is the level of inventory? A) $ 604, 110. B) $ 1, 726, 027. C) $ 124, 658. D) $ 1, 121, 918. Show Answer Correct Answer: A) $ 604, 110. 20. Cost of capital is the maximum rate of return expected by the investors A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 21. If existing share holders can share the control then they may go for debt. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 22. Interest Expense A) Debit. B) Credit. C) All the above. D) None of the above. Show Answer Correct Answer: A) Debit. 23. Calculate the cash flow for Mr. RabbaniHitung aliran tunai Encik Rabbani.Active Income /Pendapatan Aktif:RM2, 000Passive Income / Pendapatan Pasif:RM350Fixed Expenses / Belanja tetap:RM 2, 300Variable Expenses / Belanja Berubah:RM 250Then, determine whether it is Deficit or Surplus.Pastikan ialah lebihan atau kurangan. A) -800 (Deficit / kurangan ). B) -200 (Deficit / kurangan). C) 500 (Surplus / Lebihan). D) 200 (Surplus / Lebihan). Show Answer Correct Answer: B) -200 (Deficit / kurangan). 24. Market value of shares is influenced by A) Investment decision. B) Financing decision. C) Dividend decision. D) Financial decision. Show Answer Correct Answer: D) Financial decision. 25. Financial leverage is also called as ..... A) Fixed charges leverage. B) Trading on equity. C) Financial return. D) Financial Risk. Show Answer Correct Answer: B) Trading on equity. 26. Several techniques are commonly used as part of financial statement analysis. Three of the most important techniques include horizontal analysis, vertical analysis, and ratio analysis. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 27. Which of the following is a common financial goal for individuals? A) Borrowing as much money as possible. B) Increasing expenses. C) Saving for retirement. D) Decreasing income. Show Answer Correct Answer: C) Saving for retirement. 28. What is the primary function of financial management? A) To minimize all financial risks at any cost. B) To focus solely on short-term profits. C) To increase the organization's debt levels. D) To manage an organization's financial resources effectively. Show Answer Correct Answer: D) To manage an organization's financial resources effectively. 29. Breaks down the revenue a company earns against the expenses involved in its business to provide a bottom line, net income profit or loss. A) Statement of Changes in Equity. B) Cashflow Statement. C) Income Statement. D) Balance Sheet. Show Answer Correct Answer: C) Income Statement. 30. How to Correct Credit Errors? A) 1. Circle the incorrect items on your credit report. B) 2. Write a letter to the reporting agency, telling them which information you think is inaccurate. Provide supporting documentation. C) 3. Send all material by certified mail. D) 4. Send a similar letter to the creditor whose reports your disagree with. Their reporting agency will conduct an investigation. E) 5.All of the these are correct. Show Answer Correct Answer: E) 5.All of the these are correct. 31. Fair value of the Machinery is 2, 00, 000 Rs, Life of the Asset is 5 years and Annual lease rental for the asset are Rs 55, 480 for 5 years which are payable at the end of each year. calculate the amount of interest. A) Rs 55, 480. B) Rs 2, 77, 400. C) Rs 15, 480. D) Rs 77, 400. Show Answer Correct Answer: D) Rs 77, 400. 32. The method of converting the amount of the future cash into an amount of cash and cash equivalents value in present is known as A) A. Compounding. B) B. Annuity. C) C discounting. D) D. None of these. Show Answer Correct Answer: C) C discounting. 33. Compounding is the process of calculating the: A) Present value of preset cash flows. B) Future value of present cash flows. C) Present value of future cash flows. D) Future value of future cash flows. Show Answer Correct Answer: B) Future value of present cash flows. 34. Which of the following is an example of an airport's non-aeronautical revenue? A) Landing fees and runway charges. B) Revenue from retail concessions and duty-free shops. C) Air Traffic Control (ATC) fees. D) Gate and counter rental fees charged to airlines. Show Answer Correct Answer: B) Revenue from retail concessions and duty-free shops. 35. An ..... is a review of accounting records and procedures. A) Audit. B) Financial statement. C) Statement of cash flows. D) Income statement. Show Answer Correct Answer: A) Audit. 36. Gross working capital refers to firms investment in ..... ? A) Current liability. B) Working capital. C) Current assets. D) None of these. Show Answer Correct Answer: C) Current assets. 37. External sources of funds are A) Funds from long term loans. B) Sale of fixed assets. C) Both (A) and (B). D) None of the above. Show Answer Correct Answer: A) Funds from long term loans. 38. Which of the following is NOT an example of an Information System? A) A website where you order pizza. B) A database storing your address. C) A pizza delivery driver. D) The system that tells the kitchen to make your pizza. Show Answer Correct Answer: C) A pizza delivery driver. 39. Debits increase which of the following: A) Assets and Expenses. B) Liabilities and Equity. C) Revenues and Equity. D) None of the above. Show Answer Correct Answer: A) Assets and Expenses. 40. What is the main function of a financial manager related to understanding capital markets? A) Clear understanding of risks associated with trading stocks and debentures. B) Clear understanding of risks associated with investing in real estate. C) Clear understanding of risks associated with starting a new business. D) Clear understanding of risks associated with international trade. Show Answer Correct Answer: A) Clear understanding of risks associated with trading stocks and debentures. 41. The degree of combined leverage is A) The percentage change in sales divided by the percentage change in earnings per share. B) The percentage change in earnings before interest and taxes divided by the percentages change in sales. C) The degree of operating leverage divided by the degree of financial leverage. D) The percentage change in earnings per share divided by the percentage change in sales. Show Answer Correct Answer: D) The percentage change in earnings per share divided by the percentage change in sales. 42. Managerial finance A) Involves tasks such as budgeting, financial forecasting, cash management, and funds procurement. B) Involves the design and delivery of advice and financial products. C) Recognizes funds on an accrual basis. D) All of the above. Show Answer Correct Answer: A) Involves tasks such as budgeting, financial forecasting, cash management, and funds procurement. 43. Which of the following is not a goal of financial management? A) Maximization of market value of Shares. B) Maximization of shareholder's Wealth. C) Minimization of Cost. D) Minimization of Revenue. Show Answer Correct Answer: D) Minimization of Revenue. 44. The amount of money you earn before taxes are taken out is your ..... A) Balance. B) Savings. C) Net Income. D) Gross Income. Show Answer Correct Answer: D) Gross Income. 45. The job of a finance manager is confined to A) Raising of funds. B) Management of Cash. C) Raising of Funds and their effective utilization. D) None of the above. Show Answer Correct Answer: C) Raising of Funds and their effective utilization. 46. . Traditional approach confines finance function only to ..... funds A) Financing. B) Mobilizing. C) Raising. D) Utilizing. Show Answer Correct Answer: C) Raising. 47. The sooner cash is received, the more ..... it is. A) Wealth. B) Money. C) Valuable. D) Financial. Show Answer Correct Answer: C) Valuable. 48. .... permanent capital and cannot be withdrawn during the lifetime of the company? A) Equity financing. B) Debt financing. C) Debt equity mix. D) None of above. Show Answer Correct Answer: A) Equity financing. 49. Having lots of credit cards shows that you are an important person. A) Fact. B) Fiction. C) All the above. D) None of the above. Show Answer Correct Answer: B) Fiction. 50. Market value of the shares are decided by ..... A) The government. B) The investment market. C) Shareholders. D) The respective companies. Show Answer Correct Answer: C) Shareholders. 51. How is return defined in finance? A) Return is the initial investment amount without any gains or losses. B) Return is the fixed interest rate paid on a loan. C) Return is the total amount of money invested in a project. D) Return is the gain or loss on an investment expressed as a percentage of the initial investment. Show Answer Correct Answer: D) Return is the gain or loss on an investment expressed as a percentage of the initial investment. 52. Objectives of financial management A) Profit maximization. B) Wealth maximization. C) Return maximization. D) All of these. Show Answer Correct Answer: D) All of these. 53. Which of the following accounts will be affected when a company purchases fixed assets? A) Cash/Bank. B) Investment. C) Cash flows. D) Capital. Show Answer Correct Answer: D) Capital. 54. "snapshot" . View of the company's financial position at a specific point in time A) Balance Sheet. B) Balance. C) Statement of Cash Flows. D) Notes to Financial Statements. Show Answer Correct Answer: B) Balance. 55. Which of the following is also known as intermediate approach A) NI Approach. B) Traditional Approach. C) NOI Approach. D) MM Approach. Show Answer Correct Answer: B) Traditional Approach. 56. The time value of money means P10 today is worth more than P10 in the future A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 57. ..... of a firm refers to the composition of its long-term funds and its capital structure. A) Over-capitalisation. B) Market capitalization. C) Under-capitalisation. D) Capitalisation. Show Answer Correct Answer: D) Capitalisation. 58. Even though the break-up is hard for fans, the benefits for the city of having a major sports franchise and losing it outweigh never having a franchise. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 59. Purpose of Regular Working Capital is A) To expand the business operations. B) To handle contingencies and uncertainties. C) To keep the primary circulation of cash for wages, salaries, etc. D) To purchase additional machinery. Show Answer Correct Answer: C) To keep the primary circulation of cash for wages, salaries, etc. 60. Ada 7 pisnip managemen keuangan, beberapa diantaranya sbb: A) Accountability, consistency, viability, transparency, accounting standards. B) Consitency, productivity, integrity, open minded. C) Stewardship, viability, continous learning, consistency. D) Productivity, integrity, collectivity, activity. Show Answer Correct Answer: A) Accountability, consistency, viability, transparency, accounting standards. ← 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