This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 54 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 54 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the annual interest rate for the investment example? A) 6%. B) 5%. C) 4%. D) 3%. Show Answer Correct Answer: B) 5%. 2. Revenues are recorded at the point of sale and costs when they are incurred, not necessarily when a firm receives or pays out cash A) Accrual-based Approach. B) FINANCIAL STATEMENT. C) Cash flow approach. D) Income Statement. Show Answer Correct Answer: A) Accrual-based Approach. 3. What is a benefit of proper allocation of funds? A) Higher risk of bankruptcy. B) Reduced investment opportunities. C) Increased business expenses. D) Enhanced operational efficiency. Show Answer Correct Answer: D) Enhanced operational efficiency. 4. A company has equity share capital of Rs 2 crores divided into equity shares of Rs 10 each and preference share capital of Rs 0.5 crores. Total assets of the Company are Rs 12 crores and liabilities amounting to Rs 3 Crores. Calculate the intrinsic value of Shares. A) Rs 6.25. B) Rs 45. C) Rs 62.5. D) Rs 4.5. Show Answer Correct Answer: B) Rs 45. 5. The importance of 'Trading on Equity' lies in the fact that if the company is A) Preference Shareholders. B) Lenders. C) Equity Shareholders. D) Government. Show Answer Correct Answer: C) Equity Shareholders. 6. Which formula is used to measure the degree of financial leverage A) EBT/EBIT. B) Contribution/EBIT. C) EBIT/EBT. D) EBIT/EBT. Show Answer Correct Answer: C) EBIT/EBT. 7. Which is the best example of EARNED income? A) Interest earned on a savings account. B) Money earned from working at the mall. C) Money received from Social Security. D) Money inherited from a relative. Show Answer Correct Answer: B) Money earned from working at the mall. 8. What is the primary goal of financial management in a business? A) Maximize shareholder wealth. B) Ignore financial stability. C) Maximize competitor profits. D) Minimize employee satisfaction. Show Answer Correct Answer: A) Maximize shareholder wealth. 9. Amount by which total revenues exceeds total revenues. A) Revenues. B) Net Income. C) Net Loss. D) Exoenses. Show Answer Correct Answer: B) Net Income. 10. This is a legal business entity created by the government. A) Sole Proprietorship. B) Partnership. C) Corporation. D) Cooperative. Show Answer Correct Answer: C) Corporation. 11. The type of preference share which is eligible for arrears of dividend A) Participating. B) Cumulative. C) Redeemable. D) Covertible. Show Answer Correct Answer: B) Cumulative. 12. Reconciles the firm's operating, investment, and financing cash flows A) Statement of Cash Flows. B) Notes to Financial Statements. C) Cash Flow Analysis. D) Statement of Retained Earnings. Show Answer Correct Answer: A) Statement of Cash Flows. 13. Which of the following statements is TRUE about the nature of financial management? A) It only deals with accounting records. B) It is future-oriented and decision-focused. C) It ignores risk and uncertainty. D) It is only concerned with small firms. Show Answer Correct Answer: B) It is future-oriented and decision-focused. 14. Setting up direct deposit can give you faster access to your money A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 15. A notebook costs $ 7.50. Tax is 7%. Find the amount of tax for the notebook. A) .55. B) .50. C) .53. D) .35. Show Answer Correct Answer: C) .53. 16. What are the different types of financial risks? A) Tax risk. B) Market risk, credit risk, operational risk, liquidity risk, legal risk. C) Currency risk. D) Investment risk. Show Answer Correct Answer: B) Market risk, credit risk, operational risk, liquidity risk, legal risk. 17. Kelemahan metode NPV antara lain A) Tells whether firm value is increased. B) Considers all cash flows. C) Requires estimate of cost of capital. D) Considers the time value of money. Show Answer Correct Answer: C) Requires estimate of cost of capital. 18. An investment is indifferent when: A) The NPV to all capital providers is equal to the weighted average cost of capital. B) The NPV to all equity providers is equal to the cost of equity. C) Equity IRR is equal to the cost of equity. D) Equity IRR is equal to the weighted average cost of capital. Show Answer Correct Answer: C) Equity IRR is equal to the cost of equity. 19. Earnings per share maximization is a feature of A) Wealth maximization. B) Profit maximization. C) Public finance. D) Capital budgeting. Show Answer Correct Answer: B) Profit maximization. 20. An ..... is a review of the financial statements of business and the accounting practices that were used to produce them ..... A) Income statement. B) Financial statement. C) Audit. D) Statement of cash flows. Show Answer Correct Answer: C) Audit. 21. Depreciation is best described as: A) A decrease in market value of an asset. B) Cash spent on maintenance. C) Increase in liabilities. D) Allocation of an asset's cost over its useful life. Show Answer Correct Answer: D) Allocation of an asset's cost over its useful life. 22. Issued by those with current account with the bank to pay for things they want to buy or for their debts A) Check. B) Bank Draft. C) Money Order. D) Warehouse Receipt. Show Answer Correct Answer: A) Check. 23. Traditionally the role of Finance Manager was restricted to acquisition and efficient allocation of funds A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 24. The lifeblood of all Business concern. A) Tip. B) Finance. C) Credit. D) Loan. Show Answer Correct Answer: B) Finance. 25. Which of the following is studied with the help of financial leverage? A) Marketing Risk. B) Interest rate Risk. C) Foreign Exchange Risk. D) Financing Risk. Show Answer Correct Answer: D) Financing Risk. ← 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