This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 42 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 42 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The decision related to distribution of residual profit is called A) (a) Investment decision. B) (b) Financing decision. C) C) Dividend decision. D) (d) None of the above. Show Answer Correct Answer: C) C) Dividend decision. 2. What is the primary goal of capital budgeting? A) To determine short-term financing needs. B) To assess employee performance in financial management. C) To analyze market trends for investment opportunities. D) To evaluate and select long-term investments that maximize shareholder value. Show Answer Correct Answer: D) To evaluate and select long-term investments that maximize shareholder value. 3. Which of the following is not a function of a Chief Financial Officer? A) Estimating the requirement of funds. B) Dividend decision. C) Cash Management. D) Generating sales leads. Show Answer Correct Answer: D) Generating sales leads. 4. Dividend is distributed through A) Profits. B) Asset. C) Capital. D) Debt. Show Answer Correct Answer: A) Profits. 5. Corporate Finance is wider than business finance A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 6. The objective of financial management is to A) Generate the maximum net profit. B) Generate the maximum retained earnings. C) Generate the maximum wealth for its shareholders. D) Generate maximum funds for the firm at the least cost. E) . Show Answer Correct Answer: C) Generate the maximum wealth for its shareholders. 7. Financial statements that have not undergone external auditing procedures may prove to be inaccurate or worse, fraudulent hence, do not fairly present the company's financial condition. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 8. Australia became the first country to have a full set of circulating polymer banknotes of all denominations A) 1996. B) 1988. C) 1983. D) 2005. Show Answer Correct Answer: A) 1996. 9. Cost of advertising, printing prospectus, etc incurred at the time of raising funds is called ..... A) Marginal Cost. B) Opportunity Cost. C) Floatation Cost. D) Variable Cost. Show Answer Correct Answer: C) Floatation Cost. 10. Proportion of debt and equity A) Capital budgeting. B) Capital structure. C) All the above. D) None of the above. Show Answer Correct Answer: B) Capital structure. 11. Manakah konsep financial planning bisnis yang benar? A) Mengelola budgeting untuk kepentingan boss. B) Mengelola budgeting untuk tiap pos kebutuhan bisnis. C) Mengelola budgeting pinjaman hutang. D) Mengelola arus penagihan piutang dengan bijak. E) Mengelola pinjaman bank untuk kebutuhan personal. Show Answer Correct Answer: B) Mengelola budgeting untuk tiap pos kebutuhan bisnis. 12. A significant cash outflow A) Corporate Taxes. B) Ordinary Corporate Income. C) Corporate Capital Gains. D) Barter. Show Answer Correct Answer: A) Corporate Taxes. 13. Rasio untuk mengukur efektivitas operasi perusahaan dalam menghasilkan keuntungan adalah: A) Net Profit Margin. B) Debt to Asset Ratio. C) Liquidity Ratio. D) Benefit Cost Ratio. Show Answer Correct Answer: A) Net Profit Margin. 14. What is Expenditure? A) Money spent on goods, services, or obligations. B) Money saved. C) Money earned. D) Money borrowed. Show Answer Correct Answer: A) Money spent on goods, services, or obligations. 15. What is the purpose of capital reserves? A) To reduce expenses. B) To create financial stability. C) To ignore financial planning. D) To increase liabilities. Show Answer Correct Answer: B) To create financial stability. 16. Fee paid for borrowing money A) Interest. B) Credit. C) Debit. D) Tax. Show Answer Correct Answer: A) Interest. 17. What is an emergency fund and why is it important? A) A checking account for daily expenses. B) A retirement fund for long-term savings. C) An emergency fund is a savings account for unexpected expenses, and it is important for financial security and avoiding debt. D) A loan to cover unexpected costs. Show Answer Correct Answer: C) An emergency fund is a savings account for unexpected expenses, and it is important for financial security and avoiding debt. 18. Which of the following is not the cause of under capitalization? A) Maintaining high standards of efficiency. B) Conservative dividend policy. C) Provides not enough depreciation to the fixed assets. D) Desire of control and trading of equity. Show Answer Correct Answer: C) Provides not enough depreciation to the fixed assets. 19. What is the formula for Merchandise Inventory Turnover Ratio? A) Average Merchandise Inventory/Cost of Goods Sold. B) Cost of Goods Sold/Merchandise Inventory. C) Merchandise Inventory/Cost of Goods Sold. D) Cost of Goods Sold/Average Merchandise Inventory. Show Answer Correct Answer: D) Cost of Goods Sold/Average Merchandise Inventory. 20. Yang bukan merupakan bagian dari Laporan Keuangan adalah A) Laporan Neraca (Balance Sheet). B) Laporan Laba Rugi (Income Statement). C) Laporan Arus Kas (Cash Flow Statement). D) Laporan Modal kerja (Net working Capital Statement). Show Answer Correct Answer: D) Laporan Modal kerja (Net working Capital Statement). 21. Production is 72000 units per anum. Credit allowed to debtors is 3 months and Selling price of the goods is Rs 40. Calculate the amount of debtors for estimation of Working Capital. A) Rs 7, 20, 000. B) Rs 86, 40, 000. C) Rs 2, 40, 000. D) Rs 72, 000. Show Answer Correct Answer: A) Rs 7, 20, 000. 22. Decrease in accounts payable A) Investing Activities. B) Operating ACtivities. C) Financing Activities. D) None of the above. Show Answer Correct Answer: B) Operating ACtivities. 23. A finance manager is responsible for maximizing the value of the utility owned by these people A) Creditor. B) Board of directors. C) Stockholder/investor. D) Supplier. Show Answer Correct Answer: C) Stockholder/investor. 24. All of the following are variables that can be manipulated to affect monetary policy except- A) Credit restrictions achieved via the banking system. B) Government expenditure on goods and services. C) The volume of money in circulation. D) The rate of interest. Show Answer Correct Answer: B) Government expenditure on goods and services. 25. The company issuing or producing the traveler's check A) Issuer or obligor. B) Agent. C) Purchaser. D) Payee. Show Answer Correct Answer: A) Issuer or obligor. ← 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