This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 68 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 68 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a key responsibility of a financial manager? A) Overseeing daily operational tasks. B) Ensuring adequate capital and managing funds wisely. C) Developing new product lines. D) Managing human resources and employee relations. Show Answer Correct Answer: B) Ensuring adequate capital and managing funds wisely. 2. Decrease in accounts receivable A) Operating Activities. B) Investing Activities. C) Financing Activities. D) None of the above. Show Answer Correct Answer: A) Operating Activities. 3. You buy 6 pairs of socks for $ 10.98, what is the unit price? A) $ 1.83. B) $ 1.85. C) $ 1.90. D) $ 1.38. Show Answer Correct Answer: A) $ 1.83. 4. What is mobile banking? A) An electronic way to view account activity and pay bills via the internet and an institution's website. B) A written order for a bank to pay money out of the account holders account. C) A record of income and spending and a plan for managing money. D) A wireless service that allows financial transactions by using an app or web browser from a mobile device. Show Answer Correct Answer: D) A wireless service that allows financial transactions by using an app or web browser from a mobile device. 5. These are activities related in the generation of the principal revenue of the firm A) Investing Activities. B) Financing Activities. C) Operating Activities. D) All of the above. Show Answer Correct Answer: C) Operating Activities. 6. The dividend decision in financial management refers to: A) How much profits to reinvest or distribute to shareholders. B) How much capital to borrow. C) How to manage inventory. D) How to minimize taxes. Show Answer Correct Answer: A) How much profits to reinvest or distribute to shareholders. 7. The amount money a person expects to have in the future is called A) Principal. B) Future Value. C) Simple Interest. D) Present Value. Show Answer Correct Answer: B) Future Value. 8. Flotation cost includes the cost of discount of issue of shares. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 9. Which principle underlies double entry accounting? A) Matching principle. B) Duality principle. C) Prudence principle. D) Historical cost principle. Show Answer Correct Answer: B) Duality principle. 10. Business process of creating relationship with and satisfying customers. A) Advertisement. B) Marketing. C) Market Research. D) Market Study. Show Answer Correct Answer: B) Marketing. 11. Out of which affects Financial management: A) The quantum of current assets and its break-up into cash, inventory and receivables. B) The amount of long-term and short-term funds to be used. C) All Incomes in the Profit and Loss Account. D) A and B. Show Answer Correct Answer: D) A and B. 12. In what area of a typical family budget do people spend most of their money? A) Food. B) Transportation. C) Utilities. D) Housing. Show Answer Correct Answer: D) Housing. 13. Which one of the following is a capital budgeting decision? A) Determining how many shares of stock to issue. B) Deciding whether or not to purchase a new machine for the production line. C) Deciding how to refinance a debt issue that is maturing. D) Determining how much inventory to keep on hand. E) Determining how much money should be kept in the checking account. Show Answer Correct Answer: B) Deciding whether or not to purchase a new machine for the production line. 14. What journal entry will be passed for making payment of reconstruction expenses? A) Debit Bank A/c and Credit Expenses A/c. B) Debit Capital reduction A/c and Credit Bank A/c. C) Debit Profit&loss A/c and Credit Bank A/c. D) Debit Expenses A/c and Credit Equity shareholders A/c. Show Answer Correct Answer: B) Debit Capital reduction A/c and Credit Bank A/c. 15. This ratio shows how quickly the firm can pay off its liabilities relative to cash, bank balances and marketable securities since these are considered as the most liquid component of the current assets. A) Acid-test Ratio. B) Cash Ratio. C) Debt Ratio. D) Current Ratio. Show Answer Correct Answer: B) Cash Ratio. 16. The following are among the responsibilities of VP for Administration, EXCEPT: A) Coordinating functions of finance and marketing departments. B) Providing assistance in payroll preparation, payment of vendors, and collection of receivables. C) Identifying adequate and cheap raw material suppliers. D) Assisting other departments in hiring employees. Show Answer Correct Answer: C) Identifying adequate and cheap raw material suppliers. 17. Fixed assets investment decision is called ..... A) Management of working capital. B) Capital budgeting. C) Financing decision. D) None of these. Show Answer Correct Answer: B) Capital budgeting. 18. The goal of managing working capital management, such an inventory, should minimize the opportunity cost of capital. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 19. The Capital Asset Pricing Model (CAPM) is used to determine the theoretically appropriate required rate of return for an asset based on its: A) Unsystematic (diversifiable) risk. B) Systematic (non-diversifiable) risk. C) Total risk (variance). D) Cash flow volatility. Show Answer Correct Answer: B) Systematic (non-diversifiable) risk. 20. What does the term 'liquidity' refer to? A) The amount of debt owed. B) The ability to pay off debt. C) The ability to access funds quickly. D) The ability to borrow money in the future. Show Answer Correct Answer: C) The ability to access funds quickly. 21. I am going to buy a new bike. A) Spending. B) Saving. C) Investing. D) Donating. Show Answer Correct Answer: A) Spending. 22. Financial institution that gathers savings, paying interest or dividends to savers. A) Savings Banks. B) Thrift Banks. C) Commercial Banks. D) Rural Banks. Show Answer Correct Answer: A) Savings Banks. 23. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960If total current liabilities amounted to 19, 900. How much is the current ratio? A) 3.00. B) 3.01. C) 2.55. D) 2.56. Show Answer Correct Answer: B) 3.01. 24. Spontaneous financing includes A) Accounts receivable. B) Accounts payable. C) Short-term loans. D) A line of credit. Show Answer Correct Answer: B) Accounts payable. 25. The cheapest source of finance is: A) Debenture. B) Equity share capital. C) Preference share. D) Retained earnings. Show Answer Correct Answer: D) Retained earnings. ← 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