This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 56 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 56 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. John wants to buy a $ 5, 000 car. He plans to buy it in 3 years. How much should he save each month to pay for the car? A) $ 1, 666.67. B) $ 138.89. C) $ 208.33. D) None of the above. Show Answer Correct Answer: B) $ 138.89. 2. The main purpose of investment is: A) Spending money. B) Saving taxes. C) Earning returns. D) Avoiding expenses. Show Answer Correct Answer: C) Earning returns. 3. Apakah tumpuan utama apabila menetapkan matlamat kewangan? A) Melabur dalam saham. B) Utamakan keperluan berbanding kehendak. C) Maksimumkan pendapatan. D) Kurangkan perbelanjaan. Show Answer Correct Answer: B) Utamakan keperluan berbanding kehendak. 4. James worked 28 hours this week and is paid $ 9.50 per hour. What is his gross pay for the week? A) $ 622.00. B) $ 270.00. C) $ 266.00. D) $ 265.00. Show Answer Correct Answer: C) $ 266.00. 5. Good financial management means prioritizing your wants over your needs A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 6. Profitability and liquidity are two main objectives of ..... ? A) Cash management. B) Inventory management. C) Recieveable management. D) All of these. Show Answer Correct Answer: A) Cash management. 7. Which of the following best defines financial management? A) Managing people in the organization. B) Managing money and assets to achieve organizational goals. C) Managing only corporate governance. D) Managing short-term financing only. Show Answer Correct Answer: B) Managing money and assets to achieve organizational goals. 8. The following minimum line items must be presented in the profit or loss section except: A) Revenue. B) Finance costs. C) Tax expense. D) Inventories. Show Answer Correct Answer: D) Inventories. 9. The financial function is concerned with the flow of funds. True or False A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 10. What is the process of managing the finances of a company to meet its strategic goals known as? A) Role of Financial Manager. B) Finance Functions. C) Financial Planning. D) Financial Strategy. Show Answer Correct Answer: D) Financial Strategy. 11. What does internal source mean? A) A source from outside the business. B) A source from within the business. C) A source taken from international funding. D) A source from a specific investor. Show Answer Correct Answer: B) A source from within the business. 12. According to Phillippatus, financial management focuses on A) Profit planning. B) Acquisition and financing of short and long-term credits. C) Sales maximization. D) Cost reduction. Show Answer Correct Answer: B) Acquisition and financing of short and long-term credits. 13. Which is the first step before recording a journal entry? A) Closing the books. B) Preparing a trial balance. C) Analyzing the transaction. D) Posting to the ledger. Show Answer Correct Answer: C) Analyzing the transaction. 14. A small restaurant upgrades its inventory tracking and menu ordering system in order to better serve their customers and to order the correct food items each week. A) Market Planning. B) Product Management. C) Marketing Information Management. D) Distribution. Show Answer Correct Answer: B) Product Management. 15. ..... is the total amount of money owed to a business A) Accounts payable. B) Accounts receivable. C) Fixed assets. D) Equity. Show Answer Correct Answer: B) Accounts receivable. 16. Savings, in the form of money A) Store of Value. B) Means of Deferred Payment. C) Conveyance. D) Medium of Exchange. Show Answer Correct Answer: A) Store of Value. 17. What does the term 'working capital planning' refer to? A) Strategies for acquiring new assets. B) Strategies for managing daily cash flow. C) Strategies for managing long-term investments. D) Strategies for reducing debt. Show Answer Correct Answer: B) Strategies for managing daily cash flow. 18. Under which of the following circumstances a company is NOT likely to declare a higher dividend? A) When the earnings of the company are high. B) When a company has a lucrative forthcoming business opportunity(Growth opportunity ). C) When the cash flow position of the company is strong. D) None of the above. Show Answer Correct Answer: B) When a company has a lucrative forthcoming business opportunity(Growth opportunity ). 19. Financial management process consists of these processes except for ..... A) Setting goals. B) Evaluating financial status. C) Creating and carrying a financial plan. D) Estimating a financial plan. E) Reviewing and revising the progress. Show Answer Correct Answer: D) Estimating a financial plan. 20. Assets and liabilities are exposed to currency risk when their values can change with unexpected changes in currency values. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 21. Ratios that measure the liquidity of specific assets and efficiency in managing assets. A) Liquidity Ratio. B) Activity Ratio. C) Solvency Ratio. D) Profitability Ratio. Show Answer Correct Answer: B) Activity Ratio. 22. Dividends are paid out of A) Accumulated profits. B) Gross profit. C) Profit after tax. D) General reserve. Show Answer Correct Answer: C) Profit after tax. 23. The primary role of a financial institution is to act as the link between the depositors who have the money and the borrowers who need the money. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 24. Time value of money explains that: A) Value of rupee received today is worth more than it is in the future. B) Value of rupee received today is worth less than it is in the future. C) Value of rupee received today and at some other time in future is equal. D) None of them. Show Answer Correct Answer: A) Value of rupee received today is worth more than it is in the future. 25. A limitation of online banking is: A) The data is not safe from hackers. B) You have to log in regularly or your account could be closed. C) You have to have an internet connection. D) All of the above. Show Answer Correct Answer: D) All of the above. ← 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