This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 20 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. You buy a copy of your favorite movie for $ 23.45. You give the clerk $ 25. How much change will you receive? A) $ 1.50. B) $ 1.55. C) .95. D) $ 1.56. Show Answer Correct Answer: B) $ 1.55. 2. How much is Puan Soffia's monthly saving if she wanted to pay the down payment for a RM650, 000 house in six years? A) RM1111.78. B) RM1000.78. C) RM900.00. D) RM902.78. Show Answer Correct Answer: D) RM902.78. 3. The process of planning, evaluating, selecting, and managing the financing of long-term operating projects of the company is termed ..... A) Working capital management. B) Capital structure. C) Accounts receivable management. D) Capital budgeting. Show Answer Correct Answer: D) Capital budgeting. 4. CAPM stands for. A) Capital asset pricing model. B) Capital amount printing model. C) Capital amount pricing model. D) Capital asset printing model. Show Answer Correct Answer: A) Capital asset pricing model. 5. Financial leverage is also known as A) Trading on equity. B) Trading on debt. C) Interest on equity. D) Interest on debt. Show Answer Correct Answer: A) Trading on equity. 6. Which of the following is the best definition for accounting Transaction Analysis A) The method of recording only cash transactions in financial statements. B) A technique for predicting future financial trends based on past data. C) The practice of auditing financial statements for accuracy. D) The process of examining financial transactions to assess their effects on accounts and the accounting equation. Show Answer Correct Answer: D) The process of examining financial transactions to assess their effects on accounts and the accounting equation. 7. Sources of finance are broken down into two categories. What are they? A) Loans and Crowdfunding. B) Debt and Finance. C) Equity and Debt. D) Equity and Borrowing. Show Answer Correct Answer: C) Equity and Debt. 8. ..... is money given for a period of time but must be paid back with interest A) Debt. B) Loan. C) Income. D) Taxes. Show Answer Correct Answer: B) Loan. 9. High financial leverage indicates A) Amount of debt is high as compared to stock. B) Risky investments. C) Fixed assets are purchased with debts. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. This ratio measures the proportion of assets paid for with debt. A) Debt Ratio. B) Profitability Ratio. C) Liquidity Ratio. D) Cash Ratio. Show Answer Correct Answer: A) Debt Ratio. 11. What is the EAR if the APR is 5% and compounding is quarterly? A) Slightly above 5.09%. B) Slightly below 5.09%. C) Under 5.00%. D) Over 5.25%. Show Answer Correct Answer: A) Slightly above 5.09%. 12. How can poor financial management impact a company's credit rating? A) It has no effect on credit rating. B) Improves credit rating. C) Lowers credit rating. D) Stays constant. Show Answer Correct Answer: C) Lowers credit rating. 13. What is the significance of a budget in financial management? A) It eliminates the need for financial reporting. B) It is used solely for tax purposes. C) It provides a framework for planning and controlling financial resources. D) It helps in tracking employee performance. Show Answer Correct Answer: C) It provides a framework for planning and controlling financial resources. 14. -can be current or at a future date A) Date. B) Payee. C) Amount. D) Bank name and address. Show Answer Correct Answer: A) Date. 15. Capital budgeting is associated with A) Long term and short term assets. B) Fixed assets. C) Long term assets. D) Short term assets. Show Answer Correct Answer: C) Long term assets. 16. In India, Commercial papers are issued as per the guidelines issued by ..... A) SEBI. B) RBI. C) Forward Market Commission. D) None of the above. Show Answer Correct Answer: B) RBI. 17. Capital budgeting decisions involve: A) Decisions relating to long term assets. B) Decisions relating to short term assets. C) Decisions relating to working capital management. D) Decisions relating to share investments. Show Answer Correct Answer: A) Decisions relating to long term assets. 18. Statement of Changes in Equity shows: A) Changes in share capital and reserves. B) Changes in profit. C) Changes in assets and liabilities. D) Changes in share price. Show Answer Correct Answer: A) Changes in share capital and reserves. 19. Which of the following is/ are example(s) of financial goal(s)? A) Start an emergency fund. B) Pay off credit card. C) Save for children's education. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. The primary goal of financial management is A) To maximize the returns. B) To minimize the risk. C) To maximize the wealth of owners. D) To maximize profit. Show Answer Correct Answer: C) To maximize the wealth of owners. 21. Hire purchase price = cash price + ..... A) Instalment. B) Down payment. C) Interest. D) Principal. Show Answer Correct Answer: C) Interest. 22. What would be the discount factor of Rupee 1 for year 4 at 10%. A) 0.909. B) 0.751. C) 0.826. D) 0.683. Show Answer Correct Answer: D) 0.683. 23. Which of the above factors helps to determine the capital structure of a firm A) Government policies. B) Degree of control. C) Cost of capital. D) All of the above. Show Answer Correct Answer: D) All of the above. 24. Most suitable combination of owners funds and borrowed funds to generate higher EPS A) Trading of equity. B) Trading on equity. C) All the above. D) None of the above. Show Answer Correct Answer: B) Trading on equity. 25. What is working capital? A) Long-term assets minus long-term liabilities. B) Current assets minus current liabilities. C) Total assets minus total liabilities. D) Fixed assets minus current liabilities. Show Answer Correct Answer: B) Current assets 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