This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 52 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 52 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... is the area of finance concerned with the activities of buying and selling financial assets such as stocks and bonds. A) Investments. B) Corporate finance. C) International finance. D) Financial markets and institutions. Show Answer Correct Answer: A) Investments. 2. Capital Budgeting decision is a- A) Short term. B) Long term. C) Convertash. D) Daily routine work. Show Answer Correct Answer: B) Long term. 3. Which of the following is not an active income? A) Salary. B) Commission. C) Allowance. D) Credit Card. Show Answer Correct Answer: D) Credit Card. 4. A weekly newspaper ad and a monthly lease fee for a credit card machine are both ..... A) Variable costs. B) Variable expenses. C) Fixed costs. D) Incidental needs. Show Answer Correct Answer: C) Fixed costs. 5. Siskiyou, Inc. has total current assets of $ 1, 200, 000; total current liabilities of $ 500, 000; and long-term assets of $ 800, 000. How much is the firm's Total Liabilities & Equity? A) $ 2, 500, 000. B) $ 1, 300, 000. C) $ 2, 000, 000. D) $ 1, 800, 000. Show Answer Correct Answer: C) $ 2, 000, 000. 6. Refers to the traditional and narrow approach, which aims to maximize the profit of the concern. A) Profit Minimization. B) Wealth Maximization. C) Profit Maximization. D) Wealth Minimization. Show Answer Correct Answer: C) Profit Maximization. 7. A business organization can obtain funds from- A) Issue of preference or equity share capital. B) Issue of debentures. C) Loan from banks and financial institution. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Which formula is used to measure the degree of operating leverage A) EBT/EBIT. B) Contribution/EBIT. C) EBIT/EBT. D) EBIT/CONTRIBUTION. Show Answer Correct Answer: B) Contribution/EBIT. 9. ..... decision are irreversible. A) Capital budgeting decision. B) Working capital decisions. C) Both A and B. D) None of these. Show Answer Correct Answer: A) Capital budgeting decision. 10. The concept that increases the return on equity shares with the change in capital structure of a company A) Trading on debentures. B) Trading on equity. C) Capital budgeting. D) Financial planning. Show Answer Correct Answer: B) Trading on equity. 11. Certificate of deposit is issued by A) (a) Mutual fund companies. B) (b) Reserve Bank of India. C) C) Large Corporate House. D) D) Commercial bank and development financial institution. Show Answer Correct Answer: D) D) Commercial bank and development financial institution. 12. Bagian dari laba bersih perusahaan yang didistribusikan kepada pemegang saham disebut sebagai? A) Laba Ditahan. B) Laba Bersih. C) Dividen. D) Modal Disetor. Show Answer Correct Answer: C) Dividen. 13. Financial reporting: A) Provides information about a company's financial performance to investors, creditors, and other stakeholders. B) Helps investors make informed investment decisions. C) Both of the above. D) Neither of the above. Show Answer Correct Answer: A) Provides information about a company's financial performance to investors, creditors, and other stakeholders. 14. It also deals with financial decisions such as when to introduce a new product, when to invest in new assets, when to replace existing assets, when to borrow from banks, when to issue stocks or bonds, when to extend credit to a customer, and how much cash to maintain. A) FINANCIAL MANAGEMENT. B) MANAGEMENT. C) All the above. D) None of the above. Show Answer Correct Answer: A) FINANCIAL MANAGEMENT. 15. What capital out of the following should be used in case of better cash flow A) Debt Capital. B) Equity Share Capital. C) Both of the above. D) None of these. Show Answer Correct Answer: A) Debt Capital. 16. Mengapa pengendalian utang dianggap langkah penting dalam pengelolaan keuangan? A) Karena utang selalu menguntungkan. B) Karena utang dapat meningkatkan kekayaan. C) Karena utang dapat menjadi beban keuangan. D) Karena utang tidak pernah menjadi masalah keuangan. Show Answer Correct Answer: C) Karena utang dapat menjadi beban keuangan. 17. The finance manager is accountable for A) Earning capital assets of the company. B) Effective management of a fund. C) Arrangement of financial resources. D) Proper utilization of funds. Show Answer Correct Answer: C) Arrangement of financial resources. 18. Which of the following is an example of an operating expense for a business? A) Purchase of a new building. B) Salary payments to employees. C) Loan interest payments. D) Dividend payments to shareholders. Show Answer Correct Answer: B) Salary payments to employees. 19. Your ..... is the amount of money you have left after taxes are taken out. A) Taxes. B) Balance. C) Budget. D) Net Income. Show Answer Correct Answer: D) Net Income. 20. Cash flows are the money that is available to a business at any given time. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 21. The Real Cashflows must be discounted to get the present value at a rate equal to: A) Money Discount Rate. B) Inflation Rate. C) Real Discount Rate. D) Risk free rate of interest. Show Answer Correct Answer: C) Real Discount Rate. 22. What is the difference between fixed and variable expenses? A) Variable expenses are predictable and fixed over time. B) Fixed expenses are always higher than variable expenses. C) Fixed expenses fluctuate based on income levels. D) Fixed expenses remain constant, while variable expenses change with activity levels. Show Answer Correct Answer: D) Fixed expenses remain constant, while variable expenses change with activity levels. 23. Trade terms is one of the factors used in credit policy administration. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 24. Which of the following statements is true for a long term personal financial plan? A) Time frame of less than six months. B) Time frame of less than one year. C) Time frame of more than one year. D) Involve large amount of money. Show Answer Correct Answer: D) Involve large amount of money. 25. Why is evaluating Capital Budgeting decisions based on cash flows? A) Cash is more important for an organisation than profits. B) Cash flows are much easier to calculate compared to profits. C) Both a and b are incorrect. D) Both a and b are correct. Show Answer Correct Answer: C) Both a and b are incorrect. ← 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