This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 34 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Petrol cost $ .10 per gallon in 1930. Over the next 60 years, the price rose at an average rate of 4.42% per year. Based on this information, what was the average price of a gallon of petrol in 1990? A) $ 2.75 per gallon. B) $ 1.53 per gallon. C) $ 2.65 per gallon. D) $ 1.34 per gallon. Show Answer Correct Answer: C) $ 2.65 per gallon. 2. The term capital structure refers to A) Long-term damped preferred stock and common stock equity. B) Current assets and current liability. C) Total assets minus liability. D) Shareholders equity. Show Answer Correct Answer: A) Long-term damped preferred stock and common stock equity. 3. What is the mix of equity and debt used to finance a firm's permanent needs? A) Financial leverage. B) Budgeted income statement. C) Capital structure. D) Risk-return trade-off. Show Answer Correct Answer: C) Capital structure. 4. According to Suze Orman, what is the key to money? A) Investing wisely. B) Spending impulsively. C) Saving every penny. D) Ignoring financial advice. Show Answer Correct Answer: A) Investing wisely. 5. What are the three main financial statements? A) Expense Report, Asset Statement, Financial Summary. B) Income Statement, Balance Sheet, Cash Flow Statement. C) Profit and Loss Statement, Equity Statement, Revenue Report. D) Financial Position Statement, Income Report, Cash Management Statement. Show Answer Correct Answer: B) Income Statement, Balance Sheet, Cash Flow Statement. 6. Five years ago, sona Limited issued 12 % irredeemable debentures at Rs. 103, at Rs. 3 premium to their par value of Rs. 100. The current market price of these debentures is Rs. 94. If the company pays corporate tax at a rate of 35 %, calculate its current cost of debenture capital? A) 7.57 %. B) 8.30 %. C) 12 %. D) None of these. Show Answer Correct Answer: B) 8.30 %. 7. 2-In his traditional role the finance manager is responsible for ..... A) Arrange of utilization of funds. B) Effective management of capital. C) Arrangement of financial resources. D) Acquiring capital assets of the organization. Show Answer Correct Answer: B) Effective management of capital. 8. Yang tidak termasuk dalam Liquidity ratio (rasio likuiditas) adalah A) Cash Ratio. B) Quick Ratio. C) Current Ratio. D) Average Collection Period. Show Answer Correct Answer: D) Average Collection Period. 9. You invest $ 800 in an account that pays 6% interest, compounded annually. How much money do you have after five years? Round your answers to the nearest cent. A) $ 898.09. B) $ 1710.58. C) $ 975.68. D) $ 1070.58. Show Answer Correct Answer: D) $ 1070.58. 10. What are the disinvestment mechanisms for divesting the stake by venture capital funds? A) Buy back by promoters. B) Initial public offerings. C) Secondary stock market. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Financial markets are: A) Places where financial instruments are bought and sold. B) Institutions that facilitate the buying and selling of financial instruments. C) Both of the above. D) Neither of the above. Show Answer Correct Answer: A) Places where financial instruments are bought and sold. 12. Investment Decisions involve A) Capital Budgeting Decisions. B) Working Capital Decisions. C) Both of the above. D) None of the above. Show Answer Correct Answer: C) Both of the above. 13. Apa yang tidak merupakan kategori pengeluaran yang wajib kita alokasikan dari pendapatan kita? A) Zakat dan Pajak. B) Investasi (pendidikan anak, pensiun, ibadah haji, dll). C) Jalan-Jalan/Travelling. D) None of the above. Show Answer Correct Answer: C) Jalan-Jalan/Travelling. 14. Which one of the following statements concerning net working capital is correct? A) The degree in the cash balance is also decreases net working capital. B) Networking capital increases when inventory is bought for cash. C) Networking capital must be positive. D) All the above. Show Answer Correct Answer: A) The degree in the cash balance is also decreases net working capital. 15. If an investment grows at 9% annually, according to the Rule of 72, it will approximately double in: A) 8 years. B) 8 years. C) 6 years. D) 9 years. Show Answer Correct Answer: A) 8 years. 16. The cost of capital is: A) The required rate of return a company must earn on its investments to satisfy its investors' expectations. B) The amount of money a company must pay to borrow money. C) The amount of money a company must pay to raise equity capital. D) The amount of money a company must pay to its employees. E) None of the above. Show Answer Correct Answer: A) The required rate of return a company must earn on its investments to satisfy its investors' expectations. 17. Which of the following is a disadvantage of stock dividends? A) They require cash outflow. B) They increase the number of shares outstanding. C) They reduce earnings per share. D) They are taxed immediately. Show Answer Correct Answer: C) They reduce earnings per share. 18. The income statement reports: A) A company's financial position at a specific point in time. B) A company's cash flows over a period of time. C) A company's revenues and expenses over a period of time. D) A company's assets, liabilities, and equity. Show Answer Correct Answer: C) A company's revenues and expenses over a period of time. 19. Which of the following is a long-term goal (10+ years)? A) Saving for retirement. B) Renovating home. C) Buying a smartphone. D) Paying credit card debt. Show Answer Correct Answer: A) Saving for retirement. 20. Which of the following principles is not considered within capital budgeting for a company? A) Post-tax principle. B) Accrual principle. C) Cash flows principle. D) None of the above. Show Answer Correct Answer: B) Accrual principle. 21. Net working capital refers to A) Current assets minus current liabilities. B) Current assets. C) Total assets minus fixed assets. D) Current assetsets minus inventories. Show Answer Correct Answer: A) Current assets minus current liabilities. 22. A ..... would be an example of a principal, while a ..... would be an example of an agent, in agency theory. A) Shareholder and manager. B) Shareholder and bondhodlers. C) Manager and employee. D) None of the above. Show Answer Correct Answer: A) Shareholder and manager. 23. The ..... reports the revenue and expenses of a business for a specific time period and shows a net income or a net loss. A) Owner's equity. B) Financial statement. C) Accounts payable. D) Income statement. Show Answer Correct Answer: D) Income statement. 24. ..... will be the amount of net working capital if the value of current A) 15, 000. B) 35, 000. C) 50, 000. D) 85, 000. Show Answer Correct Answer: A) 15, 000. 25. What is the process of budgeting? A) Forecasting the future. B) Allocating financial resources. C) Analyzing financial data. D) Creating financial reports. Show Answer Correct Answer: B) Allocating financial resources. 26. Which is an example of an investment? A) Putting money into mutual funds. B) Buying new clothes. C) Paying rent. D) Spending on food. Show Answer Correct Answer: A) Putting money into mutual funds. 27. To establish good credit, you should: A) Pay your rent a few days late. B) Have lots of credit cards. C) Take out loans. D) Pay all of your bills on time. Show Answer Correct Answer: D) Pay all of your bills on time. 28. The money invested in short term assets of a firm is called A) Fixed capital. B) Dividend. C) Working capital. D) Both a and c. Show Answer Correct Answer: C) Working capital. 29. Didalammelakukan analisa Break Even Point, kita harus mengenal yang namanya PrilakuBiaya. Dibawah ini adalah macam dari Prilaku Biaya (cost Behavior), Kecuali: A) Biaya Iklan. B) Biaya Semi Variable. C) Biaya Tetap. D) Biaya Variable. Show Answer Correct Answer: A) Biaya Iklan. 30. In capital asset pricing model, characteristics line is classified as A) Weighted line. B) Profitability line. C) Regression line. D) Scattered point. Show Answer Correct Answer: C) Regression line. 31. What is the primary goal of investing? A) To save money for emergencies. B) To speculate on short-term market trends. C) To avoid financial risks altogether. D) To grow wealth over time. Show Answer Correct Answer: D) To grow wealth over time. 32. Provides an overview of the company's cash flows from operating activities, investing activities, and financing activities. A) Cashflow Statement. B) Balance Sheet. C) Statement of Changes in Equity. D) Income Statement. Show Answer Correct Answer: A) Cashflow Statement. 33. Di bawah ini yang termasuk fungsi pokok keuangan adalah? A) Keputusan Investasi. B) Keputusan Pengelolaan. C) Keputusan Partnership. D) Keputusan Pencatatan. Show Answer Correct Answer: A) Keputusan Investasi. 34. Apa yang dilakukan dalam identifikasi masalah dan penanggulangan risiko? A) Menyiapkan rencana hanya untuk masalah kehilangan pekerjaan. B) Menghindari risiko secara total. C) Hanya mengidentifikasi kerugian investasi. D) Mengidentifikasi semua masalah keuangan dan resiko yang mungkin timbul. Show Answer Correct Answer: D) Mengidentifikasi semua masalah keuangan dan resiko yang mungkin timbul. 35. When a company is unable to meet its fixed financial charges it is called ..... A) Financial risk. B) Business risk. C) All the above. D) None of the above. Show Answer Correct Answer: A) Financial risk. 36. Which of the following is an example of long-term debt? A) Trade credit. B) Accruals. C) Factoring. D) Debentures. Show Answer Correct Answer: D) Debentures. 37. The NCDOR e-File for ..... and e-File for fee website has a list of approved tax preparation software for participating e-File providers. A) Fun. B) Free. C) Businesses. D) None of the above. Show Answer Correct Answer: B) Free. 38. Which tool is most appropriate for a firm to lock in an exchange rate for a future payment shown in the diagram? A) Trade credit facilities. B) Interest rate swaps. C) Currency options contracts. D) Forward exchange contracts. Show Answer Correct Answer: D) Forward exchange contracts. 39. The most important goal of a company is to ..... A) Increase profits. B) Increase the market price of the company's common stock. C) Reduce costs and expenses. D) Increase profits. Show Answer Correct Answer: B) Increase the market price of the company's common stock. 40. It measures how often is the turn over of accounts receivable, inventory and long-term assets. A) Debt Utilization. B) Profitability. C) Liquidity. D) Asset Utilization. Show Answer Correct Answer: D) Asset Utilization. 41. Source of Finance Through Less cost is A) Debenture. B) Retained earnings. C) Preference share. D) Equity share. Show Answer Correct Answer: B) Retained earnings. 42. In February 2020, Mr Daniel received a total income of RM4 500. His monthly fixed expenses and variable expenses are RM2 880 and RMx respectively. There is a negative cash flow of RM620. Calculate the value of x? A) 3 500. B) 1 000. C) 3 880. D) 2 240. Show Answer Correct Answer: D) 2 240. 43. Payment of cash dividends A) Investing Activities. B) Operating Activities. C) Financing Activities. D) None of the above. Show Answer Correct Answer: C) Financing Activities. 44. Operating leverage x financial leverage= ..... A) Combined Leverage. B) Fixed leverage. C) Financial Combined Leverage. D) Operating Combined Leverage. Show Answer Correct Answer: A) Combined Leverage. 45. What does the term "investment" typically refer to? A) Keeping money in a savings account. B) Putting money into assets with the expectation of generating profit. C) Spending money on everyday expenses. D) Paying off debt. Show Answer Correct Answer: B) Putting money into assets with the expectation of generating profit. 46. Inventory turnover A) Short-term Solvency and Liquidity. B) Asset Liquidity and Management Efficiency. C) Long-term Financial Position or Stability. D) Profitability and Returns to Investors. E) NOT IN THE CHOICES. Show Answer Correct Answer: B) Asset Liquidity and Management Efficiency. 47. What does VAT (Value Added Tax) represent in business transactions? A) A tax on employee salaries. B) A tax on company profits. C) A tax on imported goods. D) A tax on the value added at each stage of production. Show Answer Correct Answer: D) A tax on the value added at each stage of production. 48. The ..... compensates the investor for the additional risk that the loan will not be repaid in full. A) Interest rate. B) Default premium. C) Inflation premium. D) Real rate. Show Answer Correct Answer: B) Default premium. 49. Indian Logistics' has its own warehousing arrangements at key locations across the country. Its warehousing services help business firms to reduce their overheads, increase efficiency and cut down distribution time. State whether the working capital requirements of 'Indian Logistics' will be high or low. A) High. B) Low. C) Doesn't effect. D) None of the above. Show Answer Correct Answer: B) Low. 50. You have purchased a Treasury bond that will pay $ 10, 000 to your newborn child in 15 years. If this bond is discounted at a rate of 3.875% per year, what is today's price (present value) for this bond? A) $ 10, 000. B) $ 5, 654. C) $ 5, 500. D) $ 5, 644. Show Answer Correct Answer: B) $ 5, 654. 51. They are the monetary relations that arise between the economic actors in the formation, distribution and use of money funds; In this post we explain the three main functions that finance has:distribute, control and accumulate. A) Production. B) Finance. C) Efficiency. D) Costs. Show Answer Correct Answer: B) Finance. 52. Financial Managers are often task to trade the equity securities of the firm in the financial market. What particular activity is this? A) Coordinating & Controlling. B) Making Crucial Investment & Financing Decisions. C) Trading in Financial Markets. D) Forecasting & Planning. Show Answer Correct Answer: C) Trading in Financial Markets. 53. Apa yang dilakukan dalam tahapan merencanakan keuangan? A) Menekan pengeluaran seminimal mungkin. B) Mengidentifikasi cara-cara mencapai tujuan keuangan baik jangka panjang atau pendek. C) Mencari pendapatan semaksimal mungkin. D) Menentukan tujuan investasi. Show Answer Correct Answer: B) Mengidentifikasi cara-cara mencapai tujuan keuangan baik jangka panjang atau pendek. 54. John lives in North Carolina, is single, and earns more than $ 5, 500 per year. He should use the ..... form to file your state income taxes. A) D-400. B) 1040EZ. C) W-4. D) None of the above. Show Answer Correct Answer: A) D-400. 55. How does financial management training help improve profitability? A) It optimizes cash flow management. B) It reduces overhead costs. C) It improves marketing strategies. D) It creates more efficient accounting processes. Show Answer Correct Answer: A) It optimizes cash flow management. 56. It is also known as static measure or structural ratios A) HORIZONTAL ANALYSIS. B) VERTICAL ANALYSIS. C) All the above. D) None of the above. Show Answer Correct Answer: B) VERTICAL ANALYSIS. 57. ..... is the life blood and nerve centre of a business A) Income. B) Fixed capital. C) Dividend. D) Working capital. Show Answer Correct Answer: D) Working capital. 58. ....is the value at which the assets of the company can be sold in the market. A) Book Value. B) Intrinsic Value. C) Market Value. D) Economic Value. Show Answer Correct Answer: C) Market Value. 59. How much is allocated for rent in the sample budget? A) $ 700. B) $ 600. C) $ 800. D) $ 500. Show Answer Correct Answer: A) $ 700. 60. When do we set aside the money for the 10% savings? A) After engaging the expenses. B) Before engaging the expenses. C) All the above. D) None of the above. Show Answer Correct Answer: B) Before engaging the expenses. ← 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