This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 23 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The financial activities which are performed only on special events like promotion. Amalgamation and solvency crisis are called as: A) Non-recurring finance functions. B) Recurring finance functions. C) Both of these. D) Both of these. Show Answer Correct Answer: A) Non-recurring finance functions. 2. Which of the following is NOT and objective of financial management? A) Liquidity. B) Solvency. C) Growth. D) Expenses. Show Answer Correct Answer: D) Expenses. 3. Which of the following statements about financial market efficiency is/are true?1. If share prices reflect all information currently available, share prices cannot be predicted and gains through insider dealing are not possible2. Rules against insider dealing are less important in a strong-form efficient market A) 1 only. B) 2 only. C) Neither 1 nor 2. D) Both 1 and 2. Show Answer Correct Answer: C) Neither 1 nor 2. 4. Firms having longer processing cycle require A) More fixed capital. B) No fixed capital. C) More working capital. D) Less working capital. Show Answer Correct Answer: C) More working capital. 5. Finance function comprises A) Safe custody of funds only. B) Expenditure of funds only. C) Procurement of finance only. D) Procurement & effective use of funds. Show Answer Correct Answer: D) Procurement & effective use of funds. 6. Which of the following would be consistent with a more aggressive approach to financing working capital? A) Financing short-term needs with short-term funds. B) Financing permanent inventory buildup with long-term debt. C) Financing seasonal needs with short-term funds. D) Financing some long-term needs with short-term funds. Show Answer Correct Answer: D) Financing some long-term needs with short-term funds. 7. Which of the following is not an advantage of separation of ownership and management of corporations? A) Corporations can exist forever. B) Professional managers can be hired. C) Agency costs are incurred. D) Transfer of ownership can be facilitated without affecting the operations of the firm. Show Answer Correct Answer: C) Agency costs are incurred. 8. Decisions affecting financial risk and profitability of a business A) Capital. B) Investing Decision. C) All the above. D) None of the above. Show Answer Correct Answer: A) Capital. 9. Increase the amount of short-term borrowing would increase risk. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 10. Increase in accounts payable A) Operating Activities. B) Investing Activities. C) Financing Activities. D) None of the above. Show Answer Correct Answer: A) Operating Activities. 11. In the wider sense Capital structure mens- A) Owned Capital + Loan. B) Owned Capital + Long-term loan. C) Owned Capital + Short-term Loan. D) Owned Capital. Show Answer Correct Answer: A) Owned Capital + Loan. 12. How do you calculate the current ratio? A) Current Ratio = Current Assets + Current Liabilities. B) Current Ratio = Current Assets / Current Liabilities. C) Current Ratio = Total Assets / Total Liabilities. D) Current Ratio = Current Liabilities / Current Assets. Show Answer Correct Answer: B) Current Ratio = Current Assets / Current Liabilities. 13. What is the main goal of working capital management? A) Maximize expenses. B) Reduce assets. C) Optimize cash flow. D) Increase liabilities. Show Answer Correct Answer: C) Optimize cash flow. 14. Present Value also called A) Compound Value. B) Future Value. C) Discount Value. D) Both a & b. Show Answer Correct Answer: C) Discount Value. 15. What should goals be based off of? A) Objectives. B) Wants. C) Needs. D) Values. Show Answer Correct Answer: D) Values. 16. Project is accepted when: A) Net present value is greater than zero. B) Internal Rate of Return will be greater than cost of capital. C) Profitability index will be greater than unity. D) Any of the above. Show Answer Correct Answer: D) Any of the above. 17. Which of the following is a key financial concept for IS professionals? A) Budgeting. B) Return on Investment (ROI). C) Cost-Benefit Analysis. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. Below are the duties of the financial manager, EXCEPT ..... A) Managing the flow of funds. B) Planning to obtain funds and use of funds. C) Responsible for obtaining funds. D) Giving funds to the company. Show Answer Correct Answer: D) Giving funds to the company. 19. What is factoring? A) Production Plan. B) New Financial Service. C) Cost of Sales. D) All of the above. Show Answer Correct Answer: B) New Financial Service. 20. Which of the following is the correct example of asset and liability?Yang manakah merupakan contoh aset dan liabiliti yang betul? A) Asset:Loan / pinjamanLiability:Credit card debts / hutang kad kredit. B) Asset:Unit Trust / Amanah SahamLiability:Instalment balance / Baki ansuran. C) Asset:Tax / cukai Liability:Real estate / hartanah. D) Asset:Saving / SimpananLiability:Property / harta. Show Answer Correct Answer: B) Asset:Unit Trust / Amanah SahamLiability:Instalment balance / Baki ansuran. 21. For which of the following reason(s) profit maximization concept is criticized-1. It is vague conceptually.2. It ignores the timing of returns.3. It ignores the risk factor4. Its emphasis is generally on short-run projects. Select the correct answer from the options given below. A) 1. B) 1 & 2. C) 1, 2 & 3. D) 1, 2, 3 &4. Show Answer Correct Answer: D) 1, 2, 3 &4. 22. The shareholder's equity of a corporation has three basic components. Which does not belong to the group? A) Accounts Payable. B) Share Capital. C) Reserves. D) Retained Earnings. Show Answer Correct Answer: A) Accounts Payable. 23. ..... are documents that summarize the changes resulting from business transactions that occur during an accounting period. A) Income statements. B) Financial statements. C) Accounts payables. D) Current assets. Show Answer Correct Answer: B) Financial statements. 24. The greater net cash flows, the faster the payback period A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 25. Which of the following is considered as cash inflow from the point of view of Lessee? A) Cost of Asset. B) Tax Savings on Annual maintanance cost. C) Annual lease rentals. D) Lease management fees. Show Answer Correct Answer: B) Tax Savings on Annual maintanance cost. ← 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