This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 2 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the "original price" a item is $ 18.00 and has a 15% discount, what is the new discounted sale price: A) $ 2.70. B) $ 18.50. C) $ 15.30. D) $ 15.00. Show Answer Correct Answer: C) $ 15.30. 2. What does the time value of money concept imply? A) A sum of money in the future is worth more than the same sum today due to inflation. B) The time value of money concept only applies to investments in stocks. C) Money loses value over time regardless of its earning potential. D) A sum of money today is worth more than the same sum in the future due to its potential earning capacity. Show Answer Correct Answer: D) A sum of money today is worth more than the same sum in the future due to its potential earning capacity. 3. A contract between the issuer and the lended specifying the terms of repayments and interest to be charged. A) Bond. B) Mortgage. C) Payables. D) Revenues. Show Answer Correct Answer: A) Bond. 4. A wealthy woman just died and left her pet cats the following estate:$ 50, 000 per year for the next 15 years with the first cash flow today. At a discount rate of 3.2%, what is the feline estate worth in today's dollars? A) $ 607, 180.14. B) $ 601, 180.14. C) $ 608, 180.14. D) $ 774, 000.00. Show Answer Correct Answer: A) $ 607, 180.14. 5. Financial markets can be classified by which of the following? A) Type of asset traded. B) Maturity of the financial asset. C) Owner of the financial asset. D) All of the above can be classifications of financial markets. Show Answer Correct Answer: D) All of the above can be classifications of financial markets. 6. Managers' Decisions are essential factors. A) Money Has Time Value. B) Risk Return Trade Off. C) Cash Flows Are Source Of Values. D) Market Prices Reflect Information. Show Answer Correct Answer: D) Market Prices Reflect Information. 7. Risk exists whenever actual outcomes can differ from expected outcomes. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 8. A firm's to satisfy its short-term obligations as they come due A) Liquidity Ratios. B) Activity Ratios. C) Debt Ratios. D) Profitability Ratios. Show Answer Correct Answer: A) Liquidity Ratios. 9. A sum of money in the hand has ..... value than the same sum to be paid in the future. A) No. B) Equal. C) Greater. D) Lesser. Show Answer Correct Answer: C) Greater. 10. NPV and IRR conflicts due to A) Cash flow patterns. B) Scale of investments. C) Different re-investment rate assumptions. D) Cost of capital. Show Answer Correct Answer: C) Different re-investment rate assumptions. 11. Protection of shareholders' interest is a feature of A) Profit maximization. B) Wealth maximization. C) Financial accounting. D) Budgetary control. Show Answer Correct Answer: B) Wealth maximization. 12. Which of the following are the basic needs that should be considered in financial planning?I. FoodII. ShelterIII. ClothesIV. Smart phones A) I, II and IV. B) II, III and IV. C) I, III and IV. D) I, II and III. Show Answer Correct Answer: D) I, II and III. 13. Which of the following is the formula of Free Cash Flow? A) [EBIT (1-T) + DA]-[CAPEX + $\Delta$NOWC]. B) [EBIT (1-T) + CAPEX]-[DA + $\Delta$NOWC]. C) Outstanding Shares x (Market Value of the stock + Book Value of the Stock). D) EBIT (1-T)-(Total Invested Capital x WACC). Show Answer Correct Answer: A) [EBIT (1-T) + DA]-[CAPEX + $\Delta$NOWC]. 14. Which one is not the four factors influencing capital structure decisions? A) The firm's tax position. B) Government policies. C) Business risk. D) Financial flexibility. Show Answer Correct Answer: B) Government policies. 15. How is the Debt-to-Income Ratio useful? A) It assesses the total income. B) It calculates the total debt. C) It measures an individual's monthly debt payments in relation to their monthly income. D) It determines the interest rate. Show Answer Correct Answer: C) It measures an individual's monthly debt payments in relation to their monthly income. 16. Akun-akun berikut ini termasuk bagian dari Laporan Neraca (Balance Sheet), kecuali: A) Account Receivable. B) Inventories. C) Depreciation and Amortisation. D) Patent & Godwill. Show Answer Correct Answer: C) Depreciation and Amortisation. 17. Advertising campaign is an example of A) Short term investment decision. B) Financial decision. C) Long term investment decision. D) Dividend decision. Show Answer Correct Answer: C) Long term investment decision. 18. The goal of financial management is to: A) Minimize risk for investors. B) Maximize value for shareholders. C) Reduce debt to zero. D) Increase liquidity ratios. Show Answer Correct Answer: B) Maximize value for shareholders. 19. Chinese invented pringting and the use of paper money during the Tang Dynasty A) 618-906 AD. B) 11th Century. C) 12th Century. D) 17th Century. Show Answer Correct Answer: A) 618-906 AD. 20. Which item is not funded by your tax dollars? A) Public Library. B) Local Fire Department. C) Department of Transportation (road crew). D) Fast Food Restaurant. Show Answer Correct Answer: D) Fast Food Restaurant. 21. Degree of operating leverage is calculated with the help of: A) Percentage change in EBT and percentage change in EBIT. B) Percentage change in EBIT and percentage change in sales. C) Percentage change in EBT and percentage change in sales. D) None of these. Show Answer Correct Answer: B) Percentage change in EBIT and percentage change in sales. 22. Internal Rate of Return (IRR) is equal to: A) The hurdle rate of return. B) The cost of equity. C) The cost of debt. D) The actual return of the investment. Show Answer Correct Answer: D) The actual return of the investment. 23. What percentage of your income is it generally recommended to save? A) 5%. B) 10%. C) 20%. D) 30%. Show Answer Correct Answer: C) 20%. 24. Treasurer should report to A) A. Chief financial officer. B) B. Vice president of operations. C) C chief executive officer. D) D. Board of directors. Show Answer Correct Answer: A) A. Chief financial officer. 25. That part of management which is connected with the financial activities iscalled ..... management. A) Personnel. B) Financial. C) Production. D) All the above. Show Answer Correct Answer: B) Financial. ← PreviousNext →Related QuizzesClass 12 Business Studies Chapter 9 Financial Management Quiz 1Class 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 10Class 12 Business Studies Chapter 9 Financial Management Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books