This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 1 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The profits or income of an entity or organisation can be used: A) To distribute it as dividend to the shareholders. B) To retain it in business in the form of accumulated profits. C) Either a or b. D) None of these. Show Answer Correct Answer: C) Either a or b. 2. Financil management process deals with A) Investments. B) Financig decisions. C) Both A & B. D) None of the above. Show Answer Correct Answer: B) Financig decisions. 3. Which is NOT a source of internal funds for SMEs? A) Personal savings of the entrepreneur. B) Sales of fixed assets. C) Banking. D) Profits retained in the business. Show Answer Correct Answer: C) Banking. 4. Long term financial plan usually exceed A) 10 years. B) 20 years. C) 5 years. D) 15 years. Show Answer Correct Answer: C) 5 years. 5. Amalgamation is governed by ..... A) AS 14. B) AS 3. C) AS 21. D) AS 32. Show Answer Correct Answer: A) AS 14. 6. Brandy Sdn Bhd purchased new fixed assets worth RM10, 000. This statement shows that Brandy Sdn Bhd utilizes A) Sources of fund. B) Uses of fund. C) All the above. D) None of the above. Show Answer Correct Answer: B) Uses of fund. 7. Evaluating your budget helps your to adjust both your budget and spending habits to reach your goals. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 8. To buy securities, i.e., share or debentures, it is compulsory to open A) (a) Current Account. B) (b) Demat Account. C) C) Fixed Deposit Account. D) D) Recurring Account. Show Answer Correct Answer: B) (b) Demat Account. 9. Which of the following is a function of the finance manager A) Mobilizing funds. B) Risk return trade off. C) Deployment of funds. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. As legal tender, money is acceptable in payment of debts/liabilities A) Means of Deferred Payment. B) Conveyance. C) Store of Value. D) Medium of Exchange. Show Answer Correct Answer: A) Means of Deferred Payment. 11. Kepanjangan dari WTP dalam dunia Laporan Keuangan adalah A) Wajar Tanpa Pemeriksaan. B) Wajar Tapi Pas-pasan. C) Wajar Tanpa Pengecualian. D) Wajar Tanpa Pemaksaan. Show Answer Correct Answer: C) Wajar Tanpa Pengecualian. 12. An Information System uses technology to: A) Collect information. B) Store information. C) Process information. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. A business will sometimes factor its receivable assets to meet its present and immediate cash needs. What does factoring mean? A) It's when a business sells its accounts receivable (i.e., invoices) to a third party at a discount. B) It's a debt document bond with a promise to pay back the amount borrowed, with interest, on a certain date. C) All the above. D) None of the above. Show Answer Correct Answer: A) It's when a business sells its accounts receivable (i.e., invoices) to a third party at a discount. 14. The financial strategy that involves the airline offering common shares to the public to raise funds is an example of: A) Debt Financing. B) Equity Financing. C) Asset-Backed Securities. D) Mezzanine Financing. Show Answer Correct Answer: B) Equity Financing. 15. Aktivitas Bisnis akan menghasilkan Laporan Laba/Rugi. Untuk menjalankan bisnis dibutuhkan Asset. Dan untuk memperoleh Asset diperlukan Sumber Dana. Berikut ini merupakan sumber dana, KECUALI: A) Modal (Dana Pemegang Saham). B) Utang pinjaman pihak ke-3 (ex. Bank, MTN, Obligasi, dll). C) Jawaban a dan b adalah benar keduanya. D) Piutang Pelanggan. Show Answer Correct Answer: D) Piutang Pelanggan. 16. Accounts Receivable A) Debit. B) Credit. C) All the above. D) None of the above. Show Answer Correct Answer: A) Debit. 17. Positive leverage effect brings A) (a) Gain for equity shareholders. B) (b) Loss for equity shareholders. C) C) Both (a) and (b). D) (d) None of the above. Show Answer Correct Answer: A) (a) Gain for equity shareholders. 18. Free cash flow is the ..... A) Cash flow from assets. B) Remaining cash free to distribute to creditors and owners of the firm. C) Cash that a company generates to operate the company. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. What does a high current ratio signify? A) It indicates a high level of debt. B) It reflects a decrease in asset value. C) It shows poor cash flow management. D) It signifies strong liquidity and financial health. Show Answer Correct Answer: D) It signifies strong liquidity and financial health. 20. The job of a financial manager is confined to A) Raising of funds. B) Management of funds. C) Raising of funds and their effective utilization. D) Effective utilization. Show Answer Correct Answer: C) Raising of funds and their effective utilization. 21. 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?Pada bulan Februari 2020, gaji Daniel ialah RM 4 500. Belanja tetap dan belanja beruabahnya ialah RM 2 880 dan RM X. Terdapat aliran tunai yang negatif sebanyak RM620. Sila cari nilai bagi RM X. A) 1 000. B) 3 500. C) 2 240. D) 3 880. Show Answer Correct Answer: C) 2 240. 22. In February 2020, Mr Patrick received a total income of RM4500. His monthly fixed expenses and variable expenses are RM2880 and RMx respectively. There is a negative cash flow of RM620. Calculate the value of x A) 1000. B) 3500. C) 2240. D) 3880. Show Answer Correct Answer: C) 2240. 23. The company's cost of capital is called ..... A) Leverage rate. B) Hurdle rate. C) Risk rate. D) Return rate. Show Answer Correct Answer: A) Leverage rate. 24. Financial management in simple terms means A) Bookkeeping of accounts. B) Planning, organizing, and controlling money. C) Auditing financial records. D) Managing human resources. Show Answer Correct Answer: B) Planning, organizing, and controlling money. 25. Yang termasuk elemen neraca adalah A) Beban Bunga. B) Pendapatan diterima dimuka. C) Biaya dibayar dimuka. D) Semua jawaban di atas tidak tepat. Show Answer Correct Answer: C) Biaya dibayar dimuka. 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