This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 22 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following statements is TRUE if you increase your monthly payment above the required loan payment? A) The extra portion of the payment does not go to the principal. B) You can significantly increase the number of payments needed to pay off the loan. C) The extra portion of the payment increases the principal. D) You can significantly reduce the number of payments needed to pay off the loan. Show Answer Correct Answer: D) You can significantly reduce the number of payments needed to pay off the loan. 2. The efficient and effective management of funds. A) Finance. B) Evaluating Investments. C) Financial Management. D) Financial Institution. Show Answer Correct Answer: C) Financial Management. 3. Is a company issue bonus shares the debt equity ratio A) A. Remain unaffected. B) B will be affected. C) C. Will improve. D) D. None of the above. Show Answer Correct Answer: C) C. Will improve. 4. Daniel earns a net salary of RM3680 a month. He receives a commission of RM350 and a passive income of RM500. If Daniel practices a smart financial plan, what is his fixed saving? A) RM368. B) RM403. C) RM416. D) RM453. Show Answer Correct Answer: A) RM368. 5. What type of risk is associated with market fluctuations? A) Credit risk. B) Liquidity risk. C) Operational risk. D) Systematic risk. Show Answer Correct Answer: D) Systematic risk. 6. Failure to read and understand the information in the Notes to the Financial statements may be obscure managers in evaluating the degree of risk. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 7. Financial planning means ..... of financial activities. A) Determining. B) Pre-determining. C) Later-determining. D) Not determining. Show Answer Correct Answer: B) Pre-determining. 8. Comparing the costs of an IS project with its benefits is called:b) A) Budgeting. B) Return on Investment (ROI). C) Cost-Benefit Analysis. D) Risk Assessment. Show Answer Correct Answer: C) Cost-Benefit Analysis. 9. What is the purpose of financial ratios? A) To evaluate a company's financial performance and stability. B) To predict future stock prices. C) To assess employee performance. D) To determine a company's market share. Show Answer Correct Answer: A) To evaluate a company's financial performance and stability. 10. The ..... offers free file software for individuals who have an income below $ 62, 000. A) Schools. B) IRS. C) Employer. D) None of the above. Show Answer Correct Answer: B) IRS. 11. What is an example of non-depository Institution? A) Commercial Banks. B) Saving Bank. C) Credit Unions. D) Pawn shops. Show Answer Correct Answer: D) Pawn shops. 12. Which step comes first in the process of accounting transaction analysis? A) Calculating net income. B) Preparing the trial balance. C) Identifying the accounts affected by the transaction. D) Posting to the general ledger. Show Answer Correct Answer: C) Identifying the accounts affected by the transaction. 13. Will the company be able to pay its short-term debts? A) Customers. B) Finance. C) Creditors. D) Marketing. Show Answer Correct Answer: C) Creditors. 14. What is a savings account? A) A for profit institution that offers personal loans, mortgages and other services. B) A business that provides money related services. C) An interest bearing account where people put money for future use. D) None of the above. Show Answer Correct Answer: C) An interest bearing account where people put money for future use. 15. What is the importance of financial planning related to the development of growth and expansion plans? A) To aid in the development of growth and expansion plans. B) To hinder the development of growth and expansion plans. C) To ignore the development of growth and expansion plans. D) To delay the development of growth and expansion plans. Show Answer Correct Answer: A) To aid in the development of growth and expansion plans. 16. Financial managers are interested in the information contained in the firm's accrual-based financial statements their primary focus is on cash flows/without adequate cash to pay obligations on time, to fund operations and growth A) Cash Flow Analysis. B) Statement of Retained Earnings. C) Statement of Cash Flows. D) Notes to Financial Statements. Show Answer Correct Answer: A) Cash Flow Analysis. 17. Name the activity that is not among the daily activities of financial management A) Credit management. B) The receipt and disbursement of funds. C) Inventory control. D) Sale of shares and bonds. Show Answer Correct Answer: D) Sale of shares and bonds. 18. How are savings and debt related? A) Savings may reduce the need for debt. B) Savings may increase the costs of debt. C) Savings may increase the fees for debt. D) Savings may reduce the credit history of debt. Show Answer Correct Answer: A) Savings may reduce the need for debt. 19. Which financial metric is often used to assess profitability? A) Return on Investment. B) Net Profit Margin. C) Gross Profit Margin. D) Operating Income. Show Answer Correct Answer: B) Net Profit Margin. 20. The financial activities which are performed regularly are known as: A) Non-recurring finance functions. B) Recurring finance functions. C) Both of these. D) None of these. Show Answer Correct Answer: B) Recurring finance functions. 21. Capital structure is a part of the liability side of a balance sheet. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 22. A ..... is a plan specifying how money will be used or spent during a particular period. A) Financial forecast. B) Financial plan. C) Accounting equation. D) Budget. Show Answer Correct Answer: D) Budget. 23. How can businesses typically finance their growth? A) Reducing product offerings. B) Downsizing the workforce. C) Borrowing capital. D) Cutting marketing expenses. Show Answer Correct Answer: C) Borrowing capital. 24. Firms having stable earnings prefer to give less dividend. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 25. Berikut ini merupakan 3T agar simpanan bisa dijamin LPS, kecuali: A) Tercatat pada pembukuan Bank. B) Tingkat bunga < bunga jaminan LPS. C) Tertib bayar cicilan. D) Tidak melakukan tindakan yang merugikan bank. Show Answer Correct Answer: C) Tertib bayar cicilan. ← 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