This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 39 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does a high Load Factor (LF) primarily indicate for an airline? A) High operating costs. B) High passenger yield. C) High asset utilization and operational efficiency. D) Low demand for travel. Show Answer Correct Answer: C) High asset utilization and operational efficiency. 2. ..... is wealth in the form of money or other assets owned by a person or organization, available for a particular purpose such as starting a company or investing. A) Consumer. B) Seller. C) Capital. D) Demand. Show Answer Correct Answer: C) Capital. 3. What is the normal balance for the Revenue (Fees Earned) account? A) Debit. B) Credit. C) All the above. D) None of the above. Show Answer Correct Answer: B) Credit. 4. The financial manager selects one or more sources of finance after proper taking into Consideration of: A) Cost of capital. B) Control. C) Risk. D) All of these. Show Answer Correct Answer: D) All of these. 5. It is concerned with allocation, acquisition, and control of a company's funds. A) Management accounting. B) Finance. C) Financial management. D) Budgeting. Show Answer Correct Answer: C) Financial management. 6. Receivable Management is part of A) Dividend Decisions. B) Capital Structure Decisions. C) Capital Budgeting Decisions. D) Working Capital Management Decisions. Show Answer Correct Answer: D) Working Capital Management Decisions. 7. How are "creditors" different from "debtors" in a company's financial statements? A) Creditors represent money owed to the company; debtors represent money the company owes. B) Creditors represent money the company owes; debtors represent money owed to the company. C) Creditors and debtors are terms used interchangeably in accounting. D) Creditors represent long-term debts; debtors represent short-term debts. Show Answer Correct Answer: B) Creditors represent money the company owes; debtors represent money owed to the company. 8. What is one of the long-term goals mentioned for saving? A) Going on vacation. B) Paying off student loans. C) Buying a car. D) Building an emergency fund. Show Answer Correct Answer: D) Building an emergency fund. 9. What is the purpose of insurance? A) To increase wealth quickly. B) To invest in the stock market. C) To provide protection against financial loss. D) To save for retirement. Show Answer Correct Answer: C) To provide protection against financial loss. 10. What is objective of financial management A) Profit maximisation. B) Shareholder's Wealth maximization. C) All the above. D) None of the above. Show Answer Correct Answer: B) Shareholder's Wealth maximization. 11. Compute the EPS based on the given data below:Shares Outstanding-100, 000Year-end Net income-750, 000 A) 7 per share. B) 6 per share. C) 7.50 per share. D) 5 per share. Show Answer Correct Answer: C) 7.50 per share. 12. Ethical behavior A) Is the fifth basic principles of finance. B) Cannot be a concern to managers who are expected to maximize shareholder value. C) In the corporate world means not breaking any laws. D) Is essential in business because unethical behavior destroys trust and business relationships. Show Answer Correct Answer: D) Is essential in business because unethical behavior destroys trust and business relationships. 13. Kelemahan pendekatan IRR antara lain A) Considers the time value of money. B) Considers all cash flows. C) Tells whether firm value is increased. D) May produce multiple IRRs. Show Answer Correct Answer: D) May produce multiple IRRs. 14. Which one is the internal user? A) Potential investor. B) Management of a company. C) Creditor. D) None of the above. Show Answer Correct Answer: B) Management of a company. 15. It is the study of how the players in a financial system acquire, spend, manage, and make other sound financial decisions concerning money and other financial resources. A) Business. B) Finance. C) Instrument. D) Money. Show Answer Correct Answer: B) Finance. 16. The proposal is subject to technical viability, social and financial viability during the A) Project screening. B) Project evaluation. C) Project selection. D) Review. Show Answer Correct Answer: A) Project screening. 17. Choose the CORRECT unit of measurement of these investment appraisal method. A) PBP = time. B) ARR = monetary value. C) NPV = percentage. D) None of the above. Show Answer Correct Answer: A) PBP = time. 18. Tips yang disajikan untuk menghindari masalah keuangan mencakup ..... A) Mengelola utang secara ceroboh. B) Menyimpan uang di bawah bantal. C) Hanya fokus pada investasi. D) Memantau dan mengelola pengeluaran secara bijaksana. Show Answer Correct Answer: D) Memantau dan mengelola pengeluaran secara bijaksana. 19. The quantitative techniques used to calculate the financial costs and benefits in investments? A) Payback period. B) Cash Flow Forecast. C) Investment Appraisal. D) Investment. Show Answer Correct Answer: C) Investment Appraisal. 20. The CFO is mainly responsible for A) Sales promotion. B) Employee recruitment. C) Production planning. D) Financial forecasting. Show Answer Correct Answer: D) Financial forecasting. 21. How old can you be to open a savings or checking account? A) 18 with a guardian. B) 13 with a guardian. C) 20. D) 5 with a guardian. Show Answer Correct Answer: B) 13 with a guardian. 22. The cost of capital plays a central role in FM because it provides link between ..... &financial decision of a firm?. A) Capital structure. B) Investment. C) Cash. D) None of these. Show Answer Correct Answer: B) Investment. 23. A firm has a DFL of 5.5. What does this tell us about the firm? A) If sales rise by 1 %, then EBIT will rise by 5.5%. B) If EBIT rises by 1 %, then EPS will rise by 5.5%. C) If sales rise by 5.5%, then EBIT will rise by 1%. D) If EBIT rises by 5.5%, then EPS will rise by 1%. Show Answer Correct Answer: B) If EBIT rises by 1 %, then EPS will rise by 5.5%. 24. When WACC > IRR, the project should be: A) Accepted. B) Rejected. C) Indifferent. D) Deferred. Show Answer Correct Answer: B) Rejected. 25. Leverage ratios includes the following except: A) Interest Coverage Ratio. B) Cash Ratio. C) Debt Ratio. D) Debt to Equity Ratio. Show Answer Correct Answer: B) Cash Ratio. 26. Q4) In financial planning, what is the first step to undertake? A) Investing all available funds. B) Setting a single long-term goal. C) Determining one's risk tolerance. D) Establishing clear financial goals. Show Answer Correct Answer: D) Establishing clear financial goals. 27. Working capital management involves investment and financing decisions related to current assets and noncurrent asset. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 28. What are Expenses? A) The costs incurred in the process of earning revenue. B) The total revenue of a business. C) The profit after all costs. D) The money saved by a business. Show Answer Correct Answer: A) The costs incurred in the process of earning revenue. 29. The users of accounting information are ..... A) Internal users. B) External users. C) Internal & External users. D) None of the above. Show Answer Correct Answer: C) Internal & External users. 30. Which of the following is not a feature of a financial plan? A) Cost. B) Simplicity. C) Flexibility. D) Foresight. Show Answer Correct Answer: A) Cost. 31. Financial management refers to: A) Planning, organising and monitoring of financial resources. B) Planning, monitoring and controlling financial resources. C) Planning, organising and controlling financial resources. D) Organising, monitoring and controlling financial resources. Show Answer Correct Answer: C) Planning, organising and controlling financial resources. 32. If a salaried employee earns "$ 77, 500 a year and is paid "bi-monthly", how much is their gross pay per pay period. A) $ 3, 875.00. B) $ 6, 458.33. C) $ 3, 229.17. D) $ 3, 229.16. Show Answer Correct Answer: C) $ 3, 229.17. 33. A company is likely to declare higher dividends if A) Tax rates are high. B) Tax rates are relatively lower. C) Tax rate has no effect on dividend declaration. D) None of the above. Show Answer Correct Answer: B) Tax rates are relatively lower. 34. Which scenario best illustrates foreign exchange risk for a firm operating internationally? A) Fixed exchange rates guarantee constant revenues. B) Stable exchange rates lower hedging expenses. C) Currency boards eliminate all volatility. D) A sudden currency appreciation raises import costs. Show Answer Correct Answer: D) A sudden currency appreciation raises import costs. 35. Barack Obama thinks that the scope of modern financial management has expanded with the introduction of ..... A) Procurement of optimal capital. B) Efficient allocation of capital. C) Capital budgeting technique. D) Financial planning. Show Answer Correct Answer: C) Capital budgeting technique. 36. A ..... net working capital will arise when current assets exceed current liabilities. A) Negative. B) Positive. C) Excessive. D) Summative. Show Answer Correct Answer: B) Positive. 37. Which of the following best describes a forward contract? A) An agreement to exchange currencies at a future date at a predetermined rate. B) A long-term loan denominated in foreign currency. C) An immediate exchange of currencies at the current market rate. D) A contract that gives the right but not obligation to exchange currencies. Show Answer Correct Answer: A) An agreement to exchange currencies at a future date at a predetermined rate. 38. Financial Management mainly focuses on ..... A) Efficient management of every business. B) Brand Dimension. C) Arrangement of funds. D) All elements of acquiring and using means of financial resources for financial activities. Show Answer Correct Answer: D) All elements of acquiring and using means of financial resources for financial activities. 39. There is a shortage of pumpkins due to a rainy summer, so consumers are charged more per item containing pumpkin puree in the fall. A) Pricing. B) Selling. C) Market Planning. D) Marketing Information Management. Show Answer Correct Answer: A) Pricing. 40. Stock market is bullish, company must raise funds through A) Debt. B) Equity. C) Both. D) None. Show Answer Correct Answer: B) Equity. 41. Working Capital = ..... A) Assets-Liabilities. B) Current assets-All liabilities. C) Current assets-Current liabilities. D) Total Current assets only. Show Answer Correct Answer: C) Current assets-Current liabilities. 42. Turnover of capital of trading concern compare with manufacturing concern is A) Higher. B) Lower. C) Equal. D) None of these. Show Answer Correct Answer: B) Lower. 43. Do we need to borrow in the near future? A) Management. B) Investors. C) Finance. D) Creditors. Show Answer Correct Answer: A) Management. 44. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960If total current liabilities amounted to 19, 900, Net Sales for the present year amounted to 480, 000 and the ending receivables totaled to 16, 500. However, it was found out that the ending inventory amounted to 9, 500 and the Cost of Goods Sold totaled to 364, 000. What is the inventory turnover ratio? A) 52.00. B) 76.63. C) 39.44. D) 52.04. Show Answer Correct Answer: C) 39.44. 45. Bagaimana cara menghitung Gross Profit margin? A) COGS ( HPP ) / revenue (pemasukan). B) Sales / Gross Profit. C) Gross Profit / revenue. D) Gross Profit / Net. Show Answer Correct Answer: C) Gross Profit / revenue. 46. What is working capital and why is it important? A) Working capital is only relevant for large corporations. B) Working capital is the total value of a company's assets. C) Working capital is the difference between current assets and current liabilities, and it is important because it indicates a company's ability to meet short-term obligations and manage day-to-day operations. D) Working capital is the amount of cash a company has on hand. Show Answer Correct Answer: C) Working capital is the difference between current assets and current liabilities, and it is important because it indicates a company's ability to meet short-term obligations and manage day-to-day operations. 47. The future value of a combination of positive and negative cash flows cannot be determined. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 48. Which of the following statements concerning profit are correct?1. Accounting profit is not the same as economic profit2. Profit takes account of risk3. Accounting profit can be manipulated by managers A) 1 and 3 only. B) 1 and 2 only C. C) 2 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: A) 1 and 3 only. 49. What is the normal balance for Asset accounts? A) Debit. B) Credit. C) All the above. D) None of the above. Show Answer Correct Answer: A) Debit. 50. A smart shopper: A) Only uses an ATM card. B) Compares prices before buying. C) Throws away receipts immediately. D) Charges lots of things on a credit card. Show Answer Correct Answer: B) Compares prices before buying. 51. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960If total current liabilities amounted to 19, 900, Net Sales for the present year amounted to 480, 000 and the ending receivables totaled to 16, 500. What is the accounts receivable turnover ratio? A) 30. B) 29.09. C) 29.10. D) 29.54. Show Answer Correct Answer: D) 29.54. 52. Which of the following is not a source of external financing for a public limited company? A) Debentures. B) Retained profit. C) Share capital. D) Ovedraft. Show Answer Correct Answer: B) Retained profit. 53. The systematic process of recording and reporting the financial position of a person or an organization is called, ..... A) Accounts receivable. B) Accounting. C) Generally accepted accounting principals (GAAP). D) Fixed assets. Show Answer Correct Answer: B) Accounting. 54. Contribution-Fixed Cost=? A) EPS. B) Sales. C) EBIT. D) EBT. Show Answer Correct Answer: C) EBIT. 55. The minimum acceptable rate of return on an investment is called the: A) Risk. B) Opportunity cost of capital. C) Interest payment. D) Capital structure decision. Show Answer Correct Answer: B) Opportunity cost of capital. 56. The process of budgeting, saving, investing, spending or otherwise supervising the use of money by an individual or group is ..... A) Money Management. B) Investment. C) Checking Account. D) Savings Account. Show Answer Correct Answer: A) Money Management. 57. A sum of money paid regularly by a company to it's shareholders out of its Profit A) Dividend. B) Debenture. C) Division. D) Divided. Show Answer Correct Answer: A) Dividend. 58. If the fixed cost of production is zero, which one of the following is correct? A) OL is zero. B) FL is zero. C) CL is zero. D) None of the above. Show Answer Correct Answer: D) None of the above. 59. The company uses this account when it reports sales of goods, generally under cost of goods sold in the income statement. A) Balance sheet. B) Current Liabilities. C) Assets. D) Inventory. Show Answer Correct Answer: D) Inventory. 60. What is the purpose of SWOT analysis in strategic planning? A) Assessing employee performance. B) Evaluating market share. C) Analyzing external and internal factors. D) Measuring customer satisfaction. Show Answer Correct Answer: C) Analyzing external and internal factors. ← 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