This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 16 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. It corresponds to an indicator that defines how many products or services have been produced for each of the resources used in their production (labor, time and capital, among others) within a determined period. A) Optimize. B) Productivity. C) Costs. D) Utility. Show Answer Correct Answer: B) Productivity. 2. .... is also called as opportunity Cost. A) Explicit Cost. B) Implicit Cost. C) Average Cost. D) Marginal Cost. Show Answer Correct Answer: B) Implicit Cost. 3. There is ..... relation between operational expenditures and debt financing A) Direct. B) Inverse. C) No relation. D) None of the above. Show Answer Correct Answer: B) Inverse. 4. Malik receives a pocket money of RM 150 every month from his father. He wants to buy a laptop with the price of RM 2 300 and his father agrees to pay 20% of the laptop's price. Calculate the duration of time needed by Malik to buy the laptop if he saves RM 80 every month from his pocket money. A) 2 years and 5 months. B) 1 year and 11 months. C) 1 year and 1 month. D) 11 months. Show Answer Correct Answer: B) 1 year and 11 months. 5. All fixed assets and part of the permanent will be financed by long-term financing. The statement is best described for ..... A) Aggressive approach. B) Hedging approach. C) Preserve approach. D) Conservative approach. Show Answer Correct Answer: A) Aggressive approach. 6. Shares issued to the promoters of a company A) Sweat equity share. B) No par share. C) Deferred share. D) Right share. Show Answer Correct Answer: C) Deferred share. 7. Which of the following statement is false?a. Horizontal analysis is used in the review of a company's financial statements over multiple periods.b. Horizontal analysis usually depicts percentage growth over the same line item in the base year.c. Horizontal analysis does not allow financial statement users to easily spot trends and growth patterns. A) B. B) A. C) C. D) All statements are false. Show Answer Correct Answer: C) C. 8. Issuance of bonds to obtain cash A) Financing Activities. B) Operating Activities. C) Investing Activities. D) None of the above. Show Answer Correct Answer: A) Financing Activities. 9. What would happen if your expenses are greater than your income? A) You would be rich. B) You would be in debt. C) You could loan people money. D) You could save more oney. Show Answer Correct Answer: B) You would be in debt. 10. The income statement begins with revenue and subtracts various operating expenses until arriving at Earnings Before Interest and Taxes. Next, interest expense is subtracted to find the taxable income for the period. Then the appropriate taxes are calculated and subtracted. We finally arrive at the ..... , the so-called bottom line of the income statement. A) After-tax income. B) Before-tax income. C) Net income. D) EBIT. Show Answer Correct Answer: C) Net income. 11. .Long term finance is required for ..... A) Current assets. B) Fixed assets. C) Intangible assets. D) None of these. Show Answer Correct Answer: B) Fixed assets. 12. Long-term financial objectives are: A) Concerned with meeting current debts of the business. B) Concerned with growing the business. C) Concerned with increasing capital investment. D) Concerned with meeting shareholder expectations. Show Answer Correct Answer: B) Concerned with growing the business. 13. Are the following statements true or false? True False 1. Cash flow forecasting is primarily the responsibility of financial reporting. 2. Whether to undertake a particular new project is a financial management decision. A) True & False. B) True & True. C) False & False. D) False & True. Show Answer Correct Answer: A) True & False. 14. Other term for working capital A) Fixed capital. B) Long-term capital. C) Circulating capital. D) Retained earnings. Show Answer Correct Answer: C) Circulating capital. 15. With the help of financial planning capital can be made available at ..... cost.(a) (b) (c) (d) A) More. B) Medium. C) Minimum. D) Zero. Show Answer Correct Answer: C) Minimum. 16. When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that are expected to increase the firms profitability. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 17. Criteria that measures how quickly project will return its original investment is? A) Accounting rate of return. B) Payback period. C) Internal rate of return. D) Benefit cost ratio. Show Answer Correct Answer: B) Payback period. 18. Used to borrow money to gain something you cannot afford at one time A) Debit card. B) Credit card. C) Check. D) Cash. Show Answer Correct Answer: B) Credit card. 19. The cash conversion cycle is: A) The time between cash payment and cash collection. B) The time taken to convert raw materials into finished goods. C) The time between inventory purchase and cash collection from sales. D) The time between ordering and receiving inventory. Show Answer Correct Answer: C) The time between inventory purchase and cash collection from sales. 20. Dividend decisions involve A) Retained earnings. B) Dividends. C) Distributable profit. D) All of the above. Show Answer Correct Answer: D) All of the above. 21. In the grocery store, the food displays at the end of the aisle are the best buys. A) Fact. B) Fiction. C) All the above. D) None of the above. Show Answer Correct Answer: B) Fiction. 22. Current assets of a business firm should be financed through: A) Current liability only. B) Long-term liability only. C) Both types (i.e. long and short term liabilities). D) Shareholders' funds. Show Answer Correct Answer: A) Current liability only. 23. What is a common financial ratio used to assess liquidity? A) Return on Investment (ROI). B) Current Ratio. C) Debt-to-Equity Ratio. D) Price-Earnings Ratio. Show Answer Correct Answer: B) Current Ratio. 24. Hal mana yg tidak termasuk dalam working capital? A) Account Receivable. B) Property, Gedung dan peralatan. C) Inventory. D) Semua jawaban benar. Show Answer Correct Answer: B) Property, Gedung dan peralatan. 25. ARP is a charity providing transport for people visiting hospitals.Which of the following performance measures would BEST fit with efficiency in a value for money review? A) Percentage of members who re-use the service. B) Cost per journey to hospital. C) A comparison of actual operating expenses against the budget. D) Number of communities served. Show Answer Correct Answer: B) Cost per journey to hospital. ← 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