This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 34 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Maximisation of Shareholders Wealth is reflected in A) Sales Maximization. B) Number of Shareholders. C) Market Price of Equity Shares. D) None of the above. Show Answer Correct Answer: C) Market Price of Equity Shares. 2. The decision to allocate capital to long-term assets, such as purchasing a new fleet of aircraft, is classified as which major financial decision? A) Dividend decision. B) Financing decision. C) Liquidity decision. D) Investment decision. Show Answer Correct Answer: D) Investment decision. 3. Present value takes ..... A) Compounding rate. B) Discounting rate. C) Inflation rate. D) Deflation rate. Show Answer Correct Answer: B) Discounting rate. 4. The sources of finance from which the quantum of required funds can be raised is/are: A) Share capital. B) Trade credit. C) Debt capital. D) All of these. Show Answer Correct Answer: D) All of these. 5. Stockholders' equity refers to the assets remaining in a business once all liabilities have been settled. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 6. Which of the following is not a spontaneous source of Short-term funds? A) Trade credit. B) Accrued Expenses. C) Provision for Dividend. D) All of the above. Show Answer Correct Answer: C) Provision for Dividend. 7. Which one of the following is NOT issued at discount to face value? A) Equity Share. B) Commercial paper. C) Certificate of deposit. D) Treasury bills. Show Answer Correct Answer: A) Equity Share. 8. Which budget focuses on a company's long-term capital investments? A) Operational budget. B) Capital budget. C) Cash budget. D) Flexible budget. Show Answer Correct Answer: B) Capital budget. 9. Depreciation is recorded as: A) Asset. B) Liability. C) Expense. D) Revenue. Show Answer Correct Answer: C) Expense. 10. It is a financial institution licensed to receive deposits and make loans. A) Bank. B) Financial Banking. C) Finance. D) Financial. Show Answer Correct Answer: A) Bank. 11. A complete set of financial statements includes the following components, except A) Statement of financial position, statement of comprehensive income and statement of cash flows. B) Statement of changes in equity. C) Notes, comprising a summary of significant accounting policies and other explanatory information. D) Reports and statements such as environmental reports and value added statements. Show Answer Correct Answer: D) Reports and statements such as environmental reports and value added statements. 12. According to the net operating income approach A) Financial mix is irrelevant and it does not affect the value of the firm. B) The business risk remains constant at every level of Dept equity mix. C) Every capital is optimum capital structure as per NOI approach. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. What is the main focus of financial planning? A) Maximizing expenses. B) Focusing solely on revenue. C) Ignoring financial risks. D) Measuring financial necessities. Show Answer Correct Answer: D) Measuring financial necessities. 14. Marginal cost of capital is the cost of A) Additional Sales. B) Additional Funds. C) Additional Interests. D) None of the above. Show Answer Correct Answer: B) Additional Funds. 15. Financial leverage measures ..... A) No change with EBIT and EPS. B) 1% variation in the level of production. C) Sensitivity of EPS with respect to 1% change in level of EBIT. D) Sensitivity of EBIT with respect of 1% change with respect to output. Show Answer Correct Answer: D) Sensitivity of EBIT with respect of 1% change with respect to output. 16. ..... is concerned with the maximization of a firm's earnings after taxes A) Shareholder wealth maximization. B) Profit maximization. C) Stakeholder maximization. D) EPS maximization. Show Answer Correct Answer: B) Profit maximization. 17. Permanent working capital A) Varies with seasonal needs. B) Includes fixed assets. C) Is the amount of current assets required to meet a firm's long-term minimum needs. D) Includes accounts payable. Show Answer Correct Answer: C) Is the amount of current assets required to meet a firm's long-term minimum needs. 18. Time value of money indicates that A) A unit of money obtained today is worth more than a unit of money obtained in future. B) B. A unit of money obtained today is worthless them a unit of money obtained in future. C) C. There is no difference in the value of money obtained today and tomorrow. D) D. None of these. Show Answer Correct Answer: A) A unit of money obtained today is worth more than a unit of money obtained in future. 19. Which of the following best defines accounting? A) Controlling employee behavior. B) Recording and communicating financial information. C) Trading goods and services. D) Setting national financial policies. Show Answer Correct Answer: B) Recording and communicating financial information. 20. The sale of "new" securities, where the financial asset is being traded for the very first time, is said to take place in the ..... market. A) Primary. B) Money. C) Secondary. D) Capital. Show Answer Correct Answer: A) Primary. 21. This decision determines the overall cost of capital and the financial risk of the enterprise A) Dividend decision. B) Capital budgeting decision. C) Investment decision. D) Financing decision. Show Answer Correct Answer: D) Financing decision. 22. Laporan keuangan yang memberikan informasi mengenai harta, modal, dan ekuitas perusahaan pada tanggal tertentu adalah? A) Consolidate Statement of Changes in Equity. B) Cash Flow. C) Income Statement. D) Balance Sheet. Show Answer Correct Answer: D) Balance Sheet. 23. Operating leverage works when A) Sales Increases. B) Sales Decreases. C) Both a & b. D) None of a & b. Show Answer Correct Answer: C) Both a & b. 24. You can invest your money at a rate of 7% per year. At this rate it will take you just over ..... years to double your money. Use the Rule of 72 to determine your answer. A) 4. B) 10. C) 5.5. D) There is not enough information to answer this question. Show Answer Correct Answer: B) 10. 25. It is a financial statement that shows the company's cash receipts and cash payments during a specific period of time. A) Balance Sheet Statement. B) Income Statement. C) Statement of stockholder's Equity. D) Statement of Cash Flow. Show Answer Correct Answer: D) Statement of Cash Flow. ← 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