This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 39 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Issued by persons drawn against their own current/checking account with a bank A) Personal Check. B) Business Check. C) Certified Check. D) Traveler's Check. Show Answer Correct Answer: A) Personal Check. 2. Oldest of all forms of money, described as mankind's first working capital asset A) Cattle. B) Cowrie shell. C) Wampum. D) Metals. Show Answer Correct Answer: A) Cattle. 3. We bought a second home to rent. A) Spending. B) Investing. C) Saving. D) Donating. Show Answer Correct Answer: B) Investing. 4. The following are all characteristeristics of a security finance except: A) Repayment is very limited. B) Also called debt capital. C) Major part of company's total capitalization. D) Long-term source of finance. Show Answer Correct Answer: B) Also called debt capital. 5. Your family income can be increased by reducing your personal expenses like: A) Use public transport instead of a car/motorcycle. B) Borrow books from library. C) No impulse buying. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. Wait Company reported the following on its income statement:Income before taxes:P 400, 000Income tax expense:100, 000Net income:P 300, 000An analysis of the income statement revealed that interest expense was P100, 000. Wait Company's times interest earned (TIE) was A) 5 times. B) 4 times. C) 3 times. D) 2 times. Show Answer Correct Answer: A) 5 times. 7. Agency problem refers to conflict between A) Government and Management. B) SEBI and RBI. C) Management and Shareholders. D) Big shareholders and minority shareholders. Show Answer Correct Answer: C) Management and Shareholders. 8. Its main role is to act as financial intermediary. A) Finance. B) Evaluating Investments. C) Financial Management. D) Financial Institution. Show Answer Correct Answer: D) Financial Institution. 9. Struktur Modal (Capital Structure) adalah A) Kombinasi dari pembiayaan ekuitas jangka panjang dan pembiayaan utang. B) Kombinasi dari pembiayaan besar jangka panjang dan pembiayaan utang. C) Kombinasi dari pembiayaan ekuitas jangka panjang dan pembiayaan jangka pendek. D) Kombinasi dari pembiayaan jangka panjang. Show Answer Correct Answer: A) Kombinasi dari pembiayaan ekuitas jangka panjang dan pembiayaan utang. 10. Which statement best describes the IMF's primary role among member countries? A) Owning and operating central banks across 184 nations. B) Acting as a forum to promote trade and stabilize exchange rates. C) Providing long-term project grants to private enterprises. D) Financing infrastructure through interest-free credits and loans. Show Answer Correct Answer: B) Acting as a forum to promote trade and stabilize exchange rates. 11. What is the importance of existing agency relationships on a firm's financial management policy? A) It only affects personal financial decisions. B) It is essential for strengthening business relationships. C) It is essential for a firm's financial management policy. D) It has no impact on financial management policy. Show Answer Correct Answer: C) It is essential for a firm's financial management policy. 12. What is another word for currency? A) Money. B) Paper. C) Candy. D) Bank. Show Answer Correct Answer: A) Money. 13. Balance of capital reduction is transferred to ..... A) Security premium. B) Capital reserve. C) Share capital. D) Profit and loss account. Show Answer Correct Answer: B) Capital reserve. 14. How does an income statement help in evaluating the financial performance of a business? A) It lists the company's employee salaries and benefits. B) It details the company's marketing strategies and campaigns. C) It provides a summary of the company's customer satisfaction levels. D) It provides a summary of the company's revenues, expenses, and profits over a specific period of time. Show Answer Correct Answer: D) It provides a summary of the company's revenues, expenses, and profits over a specific period of time. 15. What is the primary goal of finance? A) To minimize risks. B) To maximize liquidity. C) To maximize profit. D) None of the above. Show Answer Correct Answer: C) To maximize profit. 16. Which is a better example of budgeting? A) Spending randomly. B) Tracking income and expenses. C) Investing in stocks. D) Shopping online. Show Answer Correct Answer: B) Tracking income and expenses. 17. Keeping in view the high rate of Income Tax the company should give priority to ..... capital. A) Debt. B) Equity. C) Preference. D) Owner. Show Answer Correct Answer: A) Debt. 18. This ratio is used to measure the liquidity of the firm's receivable. A) Current Ratio. B) Accounts Receivable Turnover Ratio. C) Quick Ratio. D) Inventory Turnover Ratio. Show Answer Correct Answer: B) Accounts Receivable Turnover Ratio. 19. If the if the company has ideal fund that means there is large amount of ..... ? A) Cost of capital. B) Cash. C) Working capital. D) Inventory. Show Answer Correct Answer: C) Working capital. 20. Replacement of machinery is an example of ..... A) Growth of business. B) Change in technique. C) Technological Upgradation. D) None of the above. Show Answer Correct Answer: C) Technological Upgradation. 21. Bank Of Sweden issued the first paper money in Europe, began issuing promissory notes A) 17th Century. B) 1983. C) 1988. D) 1996. Show Answer Correct Answer: A) 17th Century. 22. If the cost of capital is 12%, what is the discount factor for 3 years A) 0.71. B) 0.80. C) 0.64. D) 0.89. Show Answer Correct Answer: A) 0.71. 23. What is the monthly investment amount in the compound interest example? A) $ 75. B) $ 50. C) $ 25. D) $ 100. Show Answer Correct Answer: B) $ 50. 24. Of the following, which is NOT an activity engaged in by a financial intermediary? A) Matching borrowers and lenders. B) Bearing risk. C) Managing retirement portfolios for large classes of employees. D) All of the above are activities of financial intermediaries. Show Answer Correct Answer: D) All of the above are activities of financial intermediaries. 25. How many months are in 4 years? A) 36. B) 60. C) 24. D) 48. Show Answer Correct Answer: D) 48. ← 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