This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 13 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following expenditures is a capital expenditure? A) Purchase of raw material. B) Purchase of plant. C) Rent. D) Depreciation. Show Answer Correct Answer: B) Purchase of plant. 2. A network of business owners who want to trade goods and services to increase sales and profit with a reduction of cash outlay A) Barter Business Exchange. B) Barter. C) Sales and Profit. D) Sales. Show Answer Correct Answer: A) Barter Business Exchange. 3. With the help of financial planning capital can be made available at ..... A) More. B) Medium. C) Minimum. D) Zero. Show Answer Correct Answer: C) Minimum. 4. Which of the following statements is/are correct?(1) Factoring with recourse provides insurance against bad debts(2) The expertise of a factor can increase the efficiency of trade receivables management for a company A) 2 only. B) 1 only. C) Neither 1 nor 2. D) 1 and 2. Show Answer Correct Answer: A) 2 only. 5. What are the primary aspects of financial planning within an organization? A) Budgeting and monitoring expenses. B) Determining capital requirements and capital structure. C) Making investment and financing decisions. D) Analyzing financial ratios and cash flow statements. Show Answer Correct Answer: B) Determining capital requirements and capital structure. 6. Which is not a major decision in Financial Management A) Investment Decision. B) Operations Decision. C) Financing Decision. D) Dividend Decision. Show Answer Correct Answer: B) Operations Decision. 7. This is the money paid to the company's shareholders once profit earned A) Retained earning. B) CapEx. C) Interest. D) Dividend. Show Answer Correct Answer: D) Dividend. 8. The key participants in financial transactions are individuals, businesses, and government. Individuals are net ..... of funds, and businesses are net ..... of funds. A) Suppliers; users. B) Purchasers; sellers. C) Users;suppliers. D) Users; providers. Show Answer Correct Answer: A) Suppliers; users. 9. If you borrow $ 100, 000 at an annual rate of 8.00% for a 10-year period and repay the total amount of principal and interest due of $ 215, 892.50 at the end of 10 years, what type of loan did you have? A) Discount loan. B) Interest-only loan. C) Discount Decline loan. D) Discount and Compound loan. Show Answer Correct Answer: A) Discount loan. 10. Short term unsecured promissory notes that is generally sold by large corporation on discount basis with the maturity period from 1 to 270 days. The statement is best described for ..... A) Bonds. B) Commercial paper. C) Preferred shares,. D) Common stocks. Show Answer Correct Answer: B) Commercial paper. 11. ..... is concerned with the maximization of a firm's stock price. A) Shareholder wealth maximization. B) Profit maximization. C) Stakeholder welfare maximization. D) EPS maximization. Show Answer Correct Answer: A) Shareholder wealth maximization. 12. What is the main role of the board of directors in a firm? A) Overseeing resource mobilization. B) Top governing body responsible for oversight. C) Managing firm finances. D) Providing government services. Show Answer Correct Answer: B) Top governing body responsible for oversight. 13. A ratio to determine the efficiency of managing assets in generating revenue. A) Asset utilization ratio. B) Leverage ratio. C) Liquidity ratio. D) Profitability ratio. Show Answer Correct Answer: A) Asset utilization ratio. 14. A two-year investment of $ 200 is made today at an annual interest rate of 6%. Which of the following statements is true? A) The interest earned in year two is $ 12.00 and year one is $ 12.72. B) The interest earned in year one is $ 12.00 and year two half is $ 12.72. C) The interest earned in year one is $ 12.00 and year two is $ 12.72. D) The future value would be greater if the interest rate were lower. Show Answer Correct Answer: C) The interest earned in year one is $ 12.00 and year two is $ 12.72. 15. What is the purpose of credit decisions in financial firms? A) Providing customer service. B) Automating trade decisions. C) Maximizing profits. D) Minimizing default risk. Show Answer Correct Answer: D) Minimizing default risk. 16. When performing transaction analysis, which of the following is most important to consider? A) The company's advertising budget. B) The number of employees in the company. C) The color of the accounting ledger. D) The impact on both sides of the accounting equation. Show Answer Correct Answer: D) The impact on both sides of the accounting equation. 17. June 2015:The net profit of a company is ₹ 2, 00, 000, preference dividend ₹ 25, 000, and taxes paid ₹ 15, 000. The number of equity shares is 1, 00, 000. The earnings per share (EPS) is- A) ₹ 1.5. B) ₹ 1.6. C) ₹ 2. D) ₹ 1.75. Show Answer Correct Answer: B) ₹ 1.6. 18. Financial management helps in A) The estimation of total requirement of funds and monitoring effective deployment of funds in fixed assets and working capital. B) Long term planning of company's activities. C) Profit planning for the organisation. D) Short term planning. Show Answer Correct Answer: A) The estimation of total requirement of funds and monitoring effective deployment of funds in fixed assets and working capital. 19. If interest rates are currently 5 per cent then the NPV of $ 100 received next year will be $ 95 A) True. B) False, it will be less. C) False, it will be more. D) This cannot be determined. Show Answer Correct Answer: C) False, it will be more. 20. Something that is needed for basic human survival A) Want. B) Need. C) Luxury. D) None of the above. Show Answer Correct Answer: B) Need. 21. Profit loss (income statement) mengukur ..... A) Semua jawaban benar. B) Asset and liability. C) Cash. D) Profitability. Show Answer Correct Answer: B) Asset and liability. 22. Which financial statement provides a snapshot of an airline's assets, liabilities, and equity at a specific point in time? A) Income Statement. B) Balance Sheet. C) Cash Flow Statement. D) Statement of Retained Earnings. Show Answer Correct Answer: B) Balance Sheet. 23. A(n) ..... is the purchase of goods that are not consumed today but are used in the future to create wealth A) Credit. B) Investment. C) Income. D) Savings. Show Answer Correct Answer: B) Investment. 24. Why is it important to check your credit report regularly? A) To see if you qualify for a new credit card. B) To detect and correct any errors or fraudulent activities. C) To show your friends your credit score. D) To apply for more loans. Show Answer Correct Answer: B) To detect and correct any errors or fraudulent activities. 25. Under Private Placement, shares are never offered to( A) (a) Institutes. B) (b) Brokers. C) C) General Public. D) (d) None of the above. Show Answer Correct Answer: C) C) General Public. ← PreviousNext →Related 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 8Class 12 Business Studies Chapter 9 Financial Management Quiz 9Class 12 Business Studies Chapter 9 Financial Management Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books