This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 62 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 62 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Making an investment in long term assets is A) Capital Budgeting. B) Capital Structure. C) All the above. D) None of the above. Show Answer Correct Answer: A) Capital Budgeting. 2. Silver, gold, etc. A) Metals. B) Coinage. C) Mint. D) Coin. Show Answer Correct Answer: A) Metals. 3. You buy detergent for $ 11.98 for 64 ounces, what is the unit price? A) .20. B) .17. C) .19. D) .195. Show Answer Correct Answer: C) .19. 4. Working capital refers to excess of current assets over current liabilities. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 5. Which of the following refers to corporation A) Tax paid by individual owners. B) Decision making will be done by the board of directors. C) More than one person enter the business. D) Unlimited liability. Show Answer Correct Answer: B) Decision making will be done by the board of directors. 6. Banks borrow in call money market to A) Give loans. B) Invest in high yielding securities. C) Meet the Cash Reserve Ratio (CRR). D) Invest in stock market. Show Answer Correct Answer: C) Meet the Cash Reserve Ratio (CRR). 7. What is capital budgeting? A) The process of evaluating long-term investment projects. B) The process of preparing annual operating budgets. C) The allocation of working capital. D) The management of current assets. Show Answer Correct Answer: A) The process of evaluating long-term investment projects. 8. Which technique of capital budgeting consider time value of money? A) IRR. B) NPV. C) PI. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. It is the study of how individuals or businesses evaluate investment opportunities, business proposals and business projects, and raise capital to fund them. A) Finance. B) Evaluating Investments. C) Financial Management. D) Financial Institution. Show Answer Correct Answer: A) Finance. 10. Insolvency happens when ..... A) The firm cannot meet its current obligations fast enough. B) The firm cannot meet its non-current obligations fast enough. C) The firm can meet its current obligations fast enough. D) The firm can meet its non-current obligations fast enough. Show Answer Correct Answer: A) The firm cannot meet its current obligations fast enough. 11. Debts to be paid more than one year from now are claims against the firm's assets:in other words, they are long-term liabilities. These claims are from ..... who have provided capital to the firm but whose entire repayment is not due during the coming year or operating cycle. A) Banks and bondholders. B) Banks and stockholders. C) Stockholders and bondholders. D) All long-term lenders. Show Answer Correct Answer: A) Banks and bondholders. 12. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960How much is the total current assets? A) 49, 850. B) 50, 890. C) 59, 850. D) Cannot be determined. Show Answer Correct Answer: C) 59, 850. 13. Which of the following are NOT usually considered to be agency costs? A) Costs associated with giving share options to managers. B) Costs of monitoring managers. C) Costs of obtaining a listing on the stock exchange. D) Costs of divergent behaviour by managers. Show Answer Correct Answer: C) Costs of obtaining a listing on the stock exchange. 14. Define the term 'capital budgeting'. A) A method for calculating short-term profits. B) Capital budgeting is the process of planning and managing a company's long-term investments. C) A technique for managing daily operational costs. D) A strategy for employee training and development. Show Answer Correct Answer: B) Capital budgeting is the process of planning and managing a company's long-term investments. 15. What is the monthly income in the sample budget provided? A) $ 1, 800. B) $ 1, 500. C) $ 1, 200. D) $ 1, 000. Show Answer Correct Answer: B) $ 1, 500. 16. The fixed capital requirement of a trading concern in comparison to a manufacturing concern will be A) More. B) Less. C) Same. D) Not applicable. Show Answer Correct Answer: B) Less. 17. What is the significance of a contingency plan in strategic planning? A) Maximizing employee satisfaction. B) Minimizing operational disruptions. C) Maximizing short-term profits. D) Minimizing tax liabilities. Show Answer Correct Answer: B) Minimizing operational disruptions. 18. An investment is lucrative when: A) The equity IRR is higher than NPV to equity capital providers. B) The NPV is higher than cost of investment. C) The equity IRR is higher than cost of equity. D) The NPV to equity capital providers is higher than cost of equity. Show Answer Correct Answer: C) The equity IRR is higher than cost of equity. 19. What does TCO (Total Cost of Ownership) include? A) Only upfront purchase costs. B) All costs over an asset's lifespan (e.g., maintenance, upgrades. C) Only maintenance fees. D) Only software licensing fees. Show Answer Correct Answer: B) All costs over an asset's lifespan (e.g., maintenance, upgrades. 20. 2 types of bank accounts are: A) Direct Deposit & Loan. B) Checking & Direct Deposit. C) Checking & Savings. D) Credit & Debit. Show Answer Correct Answer: C) Checking & Savings. 21. Average Sale Period can be computed by dividing A) 366 days/Accounts Receivable Turnover Ratio. B) 365 days/Inventory Turnover Ratio. C) 365 days/Accounts Receivable Turnover Ratio. D) 366 days/Inventory Turnover Ratio. Show Answer Correct Answer: B) 365 days/Inventory Turnover Ratio. 22. Decrease the purchase power A) Debenture. B) Shares. C) Inflations. D) Bonds. Show Answer Correct Answer: C) Inflations. 23. ..... :a bank account that allows you to access the money in your bank account by writing checks . It's the account that you will use to pay your bills. A) Savings Account. B) Loan. C) Checking Account. D) Budget. Show Answer Correct Answer: C) Checking Account. 24. A double ruled line under a balance means A) My pencil is broken. B) There is no more to be done on this balance. C) Adding and subtracting is needed. D) Accounts payable. Show Answer Correct Answer: B) There is no more to be done on this balance. 25. Which of the following transactions will improve the Current Ratio? A) Purchase of Goods for Cash. B) Payment to Trade Payables. C) Credit purchase of Goods. D) Cash collected from Trade Receivables. Show Answer Correct Answer: B) Payment to Trade Payables. ← 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