This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 49 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 49 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. "Financial management is concerned with the acquisition, financing and management of assets with some overall goal in mind" . Whose definition is this? A) Khan & Jain. B) Solomon. C) J.F. Bradley. D) James C. Van Horne. Show Answer Correct Answer: D) James C. Van Horne. 2. What is asset allocation? A) A way to measure the performance of a single asset. B) A technique for predicting stock market trends. C) Asset allocation is the strategy of distributing investments across various asset classes to optimize risk and return. D) A method for calculating taxes on investments. Show Answer Correct Answer: C) Asset allocation is the strategy of distributing investments across various asset classes to optimize risk and return. 3. Which of the following is NOT one of the primary financial statements used in financial reporting? A) Income statement. B) Cash flow statement. C) Sales statement. D) Balance sheet. Show Answer Correct Answer: C) Sales statement. 4. The particular combination of debts & Equity A) Capital. B) Capitalism. C) Capitalization. D) Capital structure. Show Answer Correct Answer: D) Capital structure. 5. The pay that is earned before deductions is taken out an employee's pay is called: A) Gross Pay. B) Net Pay. C) Take Home Check. D) Overtime. Show Answer Correct Answer: A) Gross Pay. 6. The balance sheet statement is correct, if: A) Assets + Liabilities = Stockholder's Equity. B) Assets = Liabilities-Stockholder's Equity. C) Assets = Liabilities + Stockholder's Equity. D) Liabilities = Assets + Stockholder's Equity. Show Answer Correct Answer: C) Assets = Liabilities + Stockholder's Equity. 7. True or False:Expenses are things you spend money on A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 8. The responsibility for the administration of FEMA is vested with ..... A) Central government. B) State government. C) RBI. D) National banks. Show Answer Correct Answer: C) RBI. 9. What does "A" stand for in S.M.A.R.T? A) Accessible. B) Attainable. C) Achievement. D) Accomplishable. Show Answer Correct Answer: B) Attainable. 10. A high operating leverage indicates- A) Highly favourable situation as it consists of low fixed costs. B) Highly risky situation as it consists of large interest costs. C) Highly favourable situation as it consists of higher EPS. D) Highly risky situation as it consists of large fixed costs. Show Answer Correct Answer: D) Highly risky situation as it consists of large fixed costs. 11. Treasury bills A) Short term debt. B) Long term debt. C) All the above. D) None of the above. Show Answer Correct Answer: A) Short term debt. 12. Operating leverage = ..... A) Contribution / EBIT. B) Contribution / EBT. C) Contribution / total expenses. D) Contribution / operating PBT. Show Answer Correct Answer: A) Contribution / EBIT. 13. The biggest accounting firms are known as the "Big Four." these include, PricewaterhouseCoopers, Deloitte Touche Tomatsu, Ernst & Young, and KPMG. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 14. The plan for future expenditure is called A) Budget. B) Expenditure. C) Income. D) Salary. Show Answer Correct Answer: A) Budget. 15. In his traditional role the finance manager is responsible for ..... A) Proper utilisation of funds. B) Arrangement of financial resources. C) Acquiring capital assets of the organization. D) Efficient management of capital. Show Answer Correct Answer: B) Arrangement of financial resources. 16. Net Present Value (NPV) is: A) Total discounted free cash flows to all capital providers minus total invested capital. B) Total undiscounted free cash flows to all capital providers minus total invested capital. C) Total discounted net profits minus total invested capital. D) Total discounted free cash flows to all capital providers minus invested equity capital. Show Answer Correct Answer: A) Total discounted free cash flows to all capital providers minus total invested capital. 17. In weighted average cost of capital, rising in interest rate leads to- A) Increase in cost of debt. B) Increase the capital structure. C) Decrease in cost of debt. D) Decrease the capital structure. Show Answer Correct Answer: A) Increase in cost of debt. 18. Education allowance for children is an example of ..... A) Fringe benefits. B) Barter system. C) Money income. D) Psychic income. Show Answer Correct Answer: A) Fringe benefits. 19. Moors established the first paper mill in Europe A) 12th Century. B) 17th Century. C) 1983. D) 1988. Show Answer Correct Answer: A) 12th Century. 20. What is the primary objective of corporate financing? A) Increasing the cost of capital. B) Improving liquidity. C) Reducing market risk. D) Generating long-term value. Show Answer Correct Answer: D) Generating long-term value. 21. A broad, general statement of what you want to achieve, giving direction to you plan of action and based on your values A) Goal. B) Objective. C) Value. D) Need. Show Answer Correct Answer: A) Goal. 22. Which of the following is a method used in analyzing financial statements- A) Variance analysis. B) Trend analysis. C) Break-even analysis. D) Budget analysis. Show Answer Correct Answer: B) Trend analysis. 23. Which of the following is NOT a capital budgeting technique? A) Net Present Value (NPV). B) Internal Rate of Return (IRR). C) Current Ratio. D) Payback Period. Show Answer Correct Answer: C) Current Ratio. 24. What does the accounting equation ensure during transaction analysis? A) That revenue is always greater than expenses. B) That assets always equal liabilities plus equity. C) That only cash transactions are recorded. D) That all transactions are posted to the trial balance first. Show Answer Correct Answer: B) That assets always equal liabilities plus equity. 25. Which are not goal of financial management? A) Maximize share price. B) Minimize firm value. C) Maximize share holder wealth. D) A and b. Show Answer Correct Answer: B) Minimize firm value. ← 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