This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 15 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A financial statement analysis method which compare historical data, such as ratios, or line items, over a number of accounting periods. A) Vertical Analysis. B) Horizontal Analysis. C) Ratio Analysis. D) Financial Benchmarking. Show Answer Correct Answer: B) Horizontal Analysis. 2. A financial year is generally from ..... A) 1st March to 31st April of the next year. B) 1st April to 31st March of the next year. C) 1st April to 1st April of the next year. D) 31st March to 31st March of the next year. Show Answer Correct Answer: B) 1st April to 31st March of the next year. 3. What is the role of a financial manager in an organization? A) To manage human resources and employee relations. B) To oversee the production and supply chain operations. C) To create marketing strategies for the organization. D) The role of a financial manager is to oversee the financial operations, manage budgets, analyze financial data, and ensure compliance with regulations. Show Answer Correct Answer: D) The role of a financial manager is to oversee the financial operations, manage budgets, analyze financial data, and ensure compliance with regulations. 4. The risk that a company will be unable to meet its short-term debt obligations as they come due is called: A) Solvency risk. B) Business risk. C) Liquidity risk. D) Interest rate risk. Show Answer Correct Answer: C) Liquidity risk. 5. Profit maximization focuses mainly on A) Social welfare. B) Maximizing shareholders' wealth. C) Earning the highest possible profit. D) Employee satisfaction. Show Answer Correct Answer: C) Earning the highest possible profit. 6. The primary goal of a publicly owned corporation is to ..... A) Maximize dividends per share. B) Maximize shareholder wealth. C) Maximize earnings per share after taxes. D) Minimize shareholder risk. Show Answer Correct Answer: B) Maximize shareholder wealth. 7. Credits increase: A) Assets and Expenses. B) Liabilities and Equity. C) Assets and Revenues only. D) Expenses and Assets. Show Answer Correct Answer: B) Liabilities and Equity. 8. Which is the main motive is to select activities having positive impact on society in: A) Profit maximization objective. B) Welfare maximization objective. C) Wealth maximization objective. D) None of these. Show Answer Correct Answer: C) Wealth maximization objective. 9. What is essential for ensuring financial stability? A) Economic growth. B) Reducing investments. C) Ignoring financial planning. D) High spending. Show Answer Correct Answer: A) Economic growth. 10. What is ignored in profit maximisation? A) Dividend. B) Time value. C) Risk. D) Earnings. Show Answer Correct Answer: B) Time value. 11. The objective of financial statement is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions. A) True. B) False. C) It depends. D) None of the above. Show Answer Correct Answer: A) True. 12. Expected annual output of the company is 1, 30, 000 units. The selling price is Rs 250. The proportion cost of material-40%, wages 20%, overheads 12% and margin 28%. Calculate the value of work-in-progress assuming processing time of 2 weeks and total 52 weeks in a year. A) Rs 7, 00, 000. B) Rs 11, 00, 000. C) Rs 14, 00, 000. D) Rs 22, 00, 000. Show Answer Correct Answer: A) Rs 7, 00, 000. 13. Eddie buys new ear buds for $ 107.36, he gives the store clerk $ 120.00, what change should he get back? A) $ 11.64. B) $ 9.46. C) $ 12.64. D) $ 20.00. Show Answer Correct Answer: C) $ 12.64. 14. Types of Investment decisions A) Long-term, Medium-term and short term. B) LOng-term and Medium-term. C) Long-term and short term. D) No classification. Show Answer Correct Answer: C) Long-term and short term. 15. What is EOQ? A) Cost of an order. B) Cost of stock. C) Optimum order size. D) None of them. Show Answer Correct Answer: C) Optimum order size. 16. ..... represent the cost that shareholders bear due to managers' pursuit of their own interests A) Shareholder. B) Stakeholder. C) Expenses. D) Agency problem. Show Answer Correct Answer: D) Agency problem. 17. Quick Assets do not include ..... A) Debtors. B) Cash. C) Bills Receivable. D) Inventory. Show Answer Correct Answer: D) Inventory. 18. Name the concept which increases the return on equity shares with a change in the capital structure of a company. A) Capital structure. B) Capitol budgeting. C) Trading on equity. D) Dividend decision. Show Answer Correct Answer: C) Trading on equity. 19. A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as A) Amortized loan. B) Depreciated loan. C) Appreciated loan. D) Repaid payments. Show Answer Correct Answer: A) Amortized loan. 20. The set of financial activities that support the OPERATIONS of a business is best described by which main area of finance? A) Corporate finance. B) Investments. C) Financial institutions and markets. D) International finance. Show Answer Correct Answer: A) Corporate finance. 21. What is crucial for safeguarding funds? A) Ignoring expenses. B) Overspending. C) Proper allocation. D) Investing in risky assets. Show Answer Correct Answer: C) Proper allocation. 22. What does the term "time value of money" imply? A) Money today is worth the same as money in the future. B) Future money is worth less than money today. C) Interest rates do not affect cash flow valuation. D) All cash flows are treated equally, regardless of timing. Show Answer Correct Answer: B) Future money is worth less than money today. 23. What annual rate of return must you earn to double your money in about 9 years? Use the Rule of 72 to determine your answer. A) You would need to earn an annual rate of return of about 12%. B) You would need to earn an annual rate of return of about 10%. C) You would need to earn an annual rate of return of about 8%. D) There is not enough information to answer this question. Show Answer Correct Answer: C) You would need to earn an annual rate of return of about 8%. 24. Business finance is a part of A) Corporate finance. B) Private finance. C) Public finance. D) Personal finance. Show Answer Correct Answer: B) Private finance. 25. Working Capital= Current Assets A) Minus Current Liabilities. B) Plus Current Liabilities. C) All the above. D) None of the above. Show Answer Correct Answer: A) Minus Current Liabilities. ← 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