This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 51 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 51 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Leveraged Firm is one A) Without Debt. B) All Equity Firm. C) A Company with Debt and Equity. D) A company without equity and debt. Show Answer Correct Answer: C) A Company with Debt and Equity. 2. Which financial decision involves choosing between different projects to invest in? A) Dividend decision. B) Financing decision. C) Investment decision. D) Accounting decision. Show Answer Correct Answer: C) Investment decision. 3. What is the main focus of public finance? A) Budgeting, investing, and retirement planning. B) Government revenue, expenditure, and debt. C) Studying money and investments. D) Managing assets and raising capital. Show Answer Correct Answer: B) Government revenue, expenditure, and debt. 4. A report of a company's financial worth in terms of book value. It is broken into three parts to include a company's assets, liabilities, and shareholders' equity. A) Balance Sheet. B) Income Statement. C) Cashflow Statement. D) Statement of Changes in Equity. Show Answer Correct Answer: A) Balance Sheet. 5. Which action would help improve financial discipline? A) Invest in high-risk stocks without research. B) Create a budget and track expenses. C) Ignore all expenses and spend freely. D) Avoid tracking any financial activities. Show Answer Correct Answer: B) Create a budget and track expenses. 6. Choose the correct way to review and revise the progress of a financial plan. A) Financial management does not need regular review. B) Review effects of financial management on regular basis. C) Ask older people. D) Budget made must be followed despite the changing in income and needs. Show Answer Correct Answer: B) Review effects of financial management on regular basis. 7. How is gross profit calculated? A) By dividing revenue by expenses. B) By multiplying revenue by expenses. C) By subtracting total expenses from total income. D) By adding total revenue and total expenses. Show Answer Correct Answer: C) By subtracting total expenses from total income. 8. Capital that comes from the creditor, a debt for the company concerned is called ..... A) Own capital. B) Venture capital. C) Foreign capital. D) Company capital. Show Answer Correct Answer: C) Foreign capital. 9. How does net loss affect owner's equity? A) Increases. B) Decreases. C) No change. D) Indirectly. Show Answer Correct Answer: B) Decreases. 10. Cash flow is ..... A) The increase or decrease in cash for the period. B) The decrease but not increase in cash for the period. C) The increase but not decrease in cash for the period. D) The net income for the period. Show Answer Correct Answer: A) The increase or decrease in cash for the period. 11. IF THE SALES OF A FIRM IS RS 10, 00, 000 AND CONTRIBUTION IS RS 2, 00, 000 THEN VARIABLE COSTS ARE A) RS 5, 00, 000. B) RS 8, 00, 000. C) RS 12, 00, 000. D) RS 20, 00, 000. Show Answer Correct Answer: B) RS 8, 00, 000. 12. Walter's models just for 100% DP ratio when A) Ke=r. B) Ke C) Ke>r. D) None of above. Show Answer Correct Answer: C) Ke>r. 13. Increase in current assets or decrease in current liabilities increases the current ratio A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 14. A decision to acquire a new and modern plant to upgrade an old one is a: A) Financing decision. B) Working capital decision. C) Investment decision. D) None of the above. Show Answer Correct Answer: C) Investment decision. 15. GDP A) Gross democracy price. B) Gross domestic product. C) Gross domestic price. D) None of these. Show Answer Correct Answer: B) Gross domestic product. 16. Constant dividend per share policy is considered as A) Increasing dividend policy. B) Decreasing dividend policy. C) Stable dividend policy. D) None of the above. Show Answer Correct Answer: C) Stable dividend policy. 17. What is Net Income? A) The amount of income left after all expenses are deducted; also called 'take-home pay'. B) The total income before expenses. C) The total debt. D) The total savings. Show Answer Correct Answer: A) The amount of income left after all expenses are deducted; also called 'take-home pay'. 18. Financial ratios are used to: A) Provide insights into a company's liquidity, profitability, efficiency, and solvency. B) Aid in decision-making and performance evaluation. C) Track a company's financial performance over time. D) All of the above. Show Answer Correct Answer: A) Provide insights into a company's liquidity, profitability, efficiency, and solvency. 19. What does a positive NPV indicate? A) The project will lose money. B) The project will break even. C) The project will add value to the firm. D) The project needs more investment. Show Answer Correct Answer: C) The project will add value to the firm. 20. In managing the day-to-day needs of the business, it is always recommended that a financial manager do the following A) To pay their bills as late as possible and get liquid funds from receivables as quickly as possible. B) To pay their bills as quickly as possible and get liquid funds from receivables as late as possible. C) All the above. D) None of the above. Show Answer Correct Answer: A) To pay their bills as late as possible and get liquid funds from receivables as quickly as possible. 21. Dividend Decision is related to A) Right issue of share. B) Reinvestment requirement. C) Cash flow statement. D) None of the above. Show Answer Correct Answer: B) Reinvestment requirement. 22. When shareholders appoint financial managers to run firms and make investment decisions, this is called: A) Agency cost. B) Financing decision. C) Limited liability. D) Separation of ownership and control. Show Answer Correct Answer: D) Separation of ownership and control. 23. Which of the following argues that the value of levered firm is higher than that of the early word firm A) Net income approach. B) Net operating income approach. C) Mm model with taxes. D) Both a and C. Show Answer Correct Answer: D) Both a and C. 24. When you get a job you are required to complete a ..... form. A) W-4 and I-9. B) W-2 and I-9. C) 1040 and I-9. D) 1040 EZ Form and I-9. Show Answer Correct Answer: A) W-4 and I-9. 25. Individuals giving out small amounts of money to a project in return for something A) Peer-to-peer lending. B) Reward-based crowdfunding. C) Donation-based crowdfunding. D) None of the above. Show Answer Correct Answer: B) Reward-based crowdfunding. ← 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