This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 47 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 47 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Funds are financial resources in the form of: A) Corporate capital. B) Business funds. C) Cash Equivalents. D) All of these. Show Answer Correct Answer: D) All of these. 2. Goodwin Transport paid $ 85 in dividends and $ 110 in interest expense during a given year. During that same year, the firm issued $ 40 in new equity shares, issued new debt of $ 65, and repaid $ 23 of old debt. What is the cash flow to creditors for that year? A) $ 68. B) $ 152. C) All the above. D) None of the above. Show Answer Correct Answer: A) $ 68. 3. Cost of retained earnings is equal to ..... A) Cost of equity. B) Cost of debt. C) Cost of bank loan. D) Cost of term loans. Show Answer Correct Answer: A) Cost of equity. 4. Advances received is an example of A) Current asset. B) Current liability. C) More of current asset less of current liability. D) Less of current asset more of current liability. Show Answer Correct Answer: B) Current liability. 5. Which term refers to the total amount of money earned by a business before deducting expenses? A) Expenditure. B) Revenue. C) Profit (net). D) Turnover. Show Answer Correct Answer: B) Revenue. 6. You are responsible for your financial well-being A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 7. Practical application of time value of money A) Preparation of loan repayment schedule. B) Sinking fund creation. C) Valuation problems. D) All the above. Show Answer Correct Answer: D) All the above. 8. High Interest Coverage Ratio means companies can have more of borrowed funds. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 9. How is the price-to-earnings (P/E) ratio calculated? A) P/E ratio = Total Revenue / Market Price per Share. B) P/E ratio = Market Price per Share / Earnings per Share (EPS). C) P/E ratio = Market Price per Share-Earnings per Share (EPS). D) P/E ratio = Earnings per Share (EPS) / Market Price per Share. Show Answer Correct Answer: B) P/E ratio = Market Price per Share / Earnings per Share (EPS). 10. Wealth maximization considers A) Only profit. B) Time value of money and risk. C) Only sales growth. D) Market share only. Show Answer Correct Answer: B) Time value of money and risk. 11. Jose earns $ 1, 000 a month. He spends 35% of his income on rent for his house. How much money is Jose spending on rent? A) $ 35. B) $ 300. C) $ 350. D) None of the above. Show Answer Correct Answer: C) $ 350. 12. Business finance deals with which of the following? A) Utilize funds efficiently. B) Procuring funds from different sources on fair terms. C) Both of these. D) None of these. Show Answer Correct Answer: C) Both of these. 13. Under net assets value method value of shares depends on ..... A) Net assets available to equity shareholders. B) Net assets available to debenture holders. C) Net assets available to preference shareholders. D) Total Assets. Show Answer Correct Answer: A) Net assets available to equity shareholders. 14. From ..... we currently receive money and goods, services and pay them in the future. A) Credit. B) Borrowing. C) Deposit. D) Interest. Show Answer Correct Answer: A) Credit. 15. What is the primary purpose of leasing finance? A) To reduce operational costs. B) To increase market share. C) To use assets without purchasing them. D) To acquire ownership of assets. Show Answer Correct Answer: C) To use assets without purchasing them. 16. Manakah pernyataan yang kurang tepat dalam menentukan dana darurat A) Ketahui jumlah pokok pengeluaran bulanan. B) Ketahui jumlah hutang. C) 50 % di tabungan Bank. D) 50% di produk investasi rendah resiko. Show Answer Correct Answer: B) Ketahui jumlah hutang. 17. Which of the following government policies would NOT tend to raise the level of demand in the economy? A) Increased expenditure on the economic infrastructure. B) Tax cuts. C) Employment training schemes. D) Financial incentives to encourage personal saving. Show Answer Correct Answer: D) Financial incentives to encourage personal saving. 18. A ..... is an estimate of a business's financial outlook for the few years. A) Financial plan. B) Financial forecast. C) Budget. D) Income statement. Show Answer Correct Answer: B) Financial forecast. 19. Teori mengenai masalah yang timbul dikarenakan perbedaan kepentingan antara pihak pemilik dan manajer adalah? A) Behavioral Finance Theory. B) Agency Theory. C) Control Hypothesis. D) Signaling Theory. Show Answer Correct Answer: B) Agency Theory. 20. What is the weighted average cost of capital (WACC)? A) The weighted average cost of capital (WACC) is the average rate of return a company is expected to pay its security holders to finance its assets. B) The weighted average cost of capital is the total revenue generated by a company. C) The WACC is the total profit a company makes from its investments. D) WACC is the interest rate on a company's loans only. Show Answer Correct Answer: A) The weighted average cost of capital (WACC) is the average rate of return a company is expected to pay its security holders to finance its assets. 21. Debt and equity differ in cost and risk. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 22. Retained earnings falls under ..... A) Investment decision. B) Financing decision. C) Dividend decision. D) Liquidity decision. Show Answer Correct Answer: C) Dividend decision. 23. Which statement is not basic financial report? A) Outcome statement. B) Income statement. C) Balance Sheet. D) Cash flow statement. Show Answer Correct Answer: A) Outcome statement. 24. Which instrument of money market is also called zero coupon bond? A) (a) Call money. B) (b) Commercial Paper. C) C) Certificate of Deposit. D) (d) Treasury Bill. Show Answer Correct Answer: D) (d) Treasury Bill. 25. Which of the following is not an important financial management decision A) Liquidity decision. B) Investing Decision. C) Assets Management Decision. D) Dividend Decision. Show Answer Correct Answer: C) Assets Management Decision. ← 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