This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 27 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 27 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Returns after tax and before depreciation is taken in A) Urgency and ARR method. B) ARR method. C) PBP method. D) PBP and Urgency method. Show Answer Correct Answer: D) PBP and Urgency method. 2. What is the differences of money market and capital market? A) No differences. B) Types of funds. C) One is short-term and the other is long-term. D) Both are suppliers of funds. Show Answer Correct Answer: C) One is short-term and the other is long-term. 3. Sales A) Debit. B) Credit. C) All the above. D) None of the above. Show Answer Correct Answer: B) Credit. 4. Why is it important to save money? A) Saving for a goal or something special in the future. B) Because your parents say so. C) So you can spend it faster. D) Its not a good idea to save money. Show Answer Correct Answer: A) Saving for a goal or something special in the future. 5. Financing decision mainly concerns A) Use of profits. B) Raising short-term and long-term funds. C) Dividend distribution. D) Cost control. Show Answer Correct Answer: B) Raising short-term and long-term funds. 6. What is the primary goal of Strategic Financial Management? A) Minimizing operational costs. B) Creating profits for the business over the long run. C) Maximizing short-term profits. D) Increasing employee satisfaction. Show Answer Correct Answer: B) Creating profits for the business over the long run. 7. Which of the following product is NOT traded in derivatives market? A) Forward. B) Mutual funds. C) Futures. D) Options. Show Answer Correct Answer: B) Mutual funds. 8. Money is used as a ..... because it's the intermediary in the exchange process. A) Payment. B) Store of value. C) Medium of exchange. D) Standard of value. Show Answer Correct Answer: C) Medium of exchange. 9. Discounting is the process of calculating the: A) Future value of present cash flows. B) Present value of preset cash flows. C) Present value of future cash flows. D) Future value of future cash flows. Show Answer Correct Answer: C) Present value of future cash flows. 10. This is the last component of Shareholder's Equity A) Share Capital. B) Reserves. C) Retained Earnings. D) Additional Paid-In Capital. Show Answer Correct Answer: C) Retained Earnings. 11. If net sales are RM1, 500, 000 and accounts receivable amount to RM300, 000, how long is the average collection period? A) 36.00 days. B) 45.00 days. C) 64.00 days. D) 72.00 days. E) NOT IN THE CHOICES. Show Answer Correct Answer: D) 72.00 days. 12. Which ONE of the following statements correctly describes the contents of the Statement of Financial Position? A) A list of ledger balances shown in debit and credit columns. B) A list of all the assets owned and all the liabilities owed by a business. C) A record of income generated and expenditure incurred over a given period. D) A record of the amount of cash generated and used by a company in a given period. Show Answer Correct Answer: B) A list of all the assets owned and all the liabilities owed by a business. 13. Which technique of financial management enables to manage day to day activities? A) Capital Structure. B) Capital Budgeting. C) Working Capital Management. D) Ratio Analysis. Show Answer Correct Answer: C) Working Capital Management. 14. A person's financial plan is failed to be carried out if the person is A) Patient. B) Flexible. C) Discipline. D) Over spending. Show Answer Correct Answer: D) Over spending. 15. What are the three primary pro forma financial statements in a financial plan? A) Debt financing, equity financing, internal funds. B) Cash flow statement, income statement, balance sheet. C) Sales of fixed assets, reduction of working capital, account receivable. D) Start-up capital, venture capital, risk capital. Show Answer Correct Answer: B) Cash flow statement, income statement, balance sheet. 16. Bombay Stock Exchange was established in the year ..... ? A) 1875. B) 1975. C) 1947. D) 1951. Show Answer Correct Answer: A) 1875. 17. Property is anything of value that is owned or controlled. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 18. It determines the economic worth in the exchange process. A) Money as a standard of value. B) Money as a medium of exchange. C) Money as a store of value. D) Money as a payment. Show Answer Correct Answer: A) Money as a standard of value. 19. What is influenced by the financing decision? A) Market price of shares. B) Cost of capital. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 20. A financial statement that shows the "Gross Profit, Operating Expenses, and Net Income over a year's time is a: A) Balance Sheet. B) Income Statement. C) Payroll Sheet. D) None of the above. Show Answer Correct Answer: B) Income Statement. 21. What does it mean when financial managers doing financial control? A) Comparing actual revenues, costs & expenses with its budget planning. B) Estimating the company's short and long term financial needs. C) Setting income forecast and allocating the use of the company's financial resources. D) None of the above. Show Answer Correct Answer: A) Comparing actual revenues, costs & expenses with its budget planning. 22. What is the primary function of a bank? A) To sell insurance. B) To print money. C) To provide financial services, such as accepting deposits and providing loans. D) To regulate the stock market. Show Answer Correct Answer: C) To provide financial services, such as accepting deposits and providing loans. 23. Which of the following is not the key components of SMART financial goals? A) Salary. B) Measurable. C) Attainable. D) Realistic. E) Time-bounded. Show Answer Correct Answer: A) Salary. 24. What is the goal of strategic financial management? A) To maximize the market value of a company and achieve planned objectives. B) To fluctuate the market value of a company and confuse planned objectives. C) To minimize the market value of a company and avoid planned objectives. D) To ignore the market value of a company and not achieve planned objectives. Show Answer Correct Answer: A) To maximize the market value of a company and achieve planned objectives. 25. A ..... is a person who relies on another person, usually a family member, for financial support. A) Taxpayer. B) Dependent. C) Community. D) None of the above. Show Answer Correct Answer: B) Dependent. ← 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