This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 69 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 69 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a discounting technique of capital budgeting A) Profitability index. B) Net present value. C) Internal rate of return. D) Accounting rate of return. Show Answer Correct Answer: D) Accounting rate of return. 2. Cash flow statement is important A) To analyze the profit changes. B) To analyze the changes in cash and chash equivalents. C) To analyze the changes in asset. D) To analyze the changes in share capital. Show Answer Correct Answer: B) To analyze the changes in cash and chash equivalents. 3. Which of the following is true for net income approach A) Hi adept increase value of the firm. B) Higher Dept is better. C) Low adept increases weighted average cost of capital. D) All of the above. Show Answer Correct Answer: B) Higher Dept is better. 4. NI and NOI approach of capital structure is suggested by A) F. W. Taylor. B) Marshall Edgeworth. C) David Durand. D) Fisher. Show Answer Correct Answer: C) David Durand. 5. In the real world, corporate finance managers have the following goals in mind while declaring dividends: A) Projects with positive NPV are not to be cut to pay dividends. B) Maintain a long-term target debt equity ratio. C) Resort to dividend cuts as and when needed. D) Avoid the need to raise fresh equity. Show Answer Correct Answer: C) Resort to dividend cuts as and when needed. 6. Lease A) Contract to buy something. B) Contract to rent something. C) Bill of sale. D) Receipt. Show Answer Correct Answer: B) Contract to rent something. 7. Which of the following is not a current asset? A) Debtors. B) Cash and bank balance. C) Creditors. D) Inventories. Show Answer Correct Answer: C) Creditors. 8. Which one is not an element of Public Financial Management Cycle? A) Budgeting. B) Execution of Budgeting. C) Audit and Evaluation. D) Procurement. Show Answer Correct Answer: D) Procurement. 9. Securities whose values are determined by the market price or interest rate of some other asset is called ..... ? A) Hedging. B) Equities. C) Derivatives. D) Liabilities. Show Answer Correct Answer: C) Derivatives. 10. Which of the following is an example of short-term finance source? A) Preference share. B) Fixed deposit. C) Trade credit. D) Debenture. Show Answer Correct Answer: C) Trade credit. 11. A "deduction" is A) Money added. B) Money taken out of a paycheck. C) Gross pay. D) Net pay. Show Answer Correct Answer: B) Money taken out of a paycheck. 12. A budget is a plan for how you will spend your money A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 13. ) "Living within your means" is a principle that promotes ..... and avoiding excessive debt. A) Overspending. B) Impulsive spending. C) Financial stability. D) Ignoring budgeting. Show Answer Correct Answer: C) Financial stability. 14. Firm with high cash flow volatility should have less debt. A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 15. Through investment the business will earn interest. A) Money Has Time Value. B) Risk Return Trade Off. C) Cash Flows Are Source of Values. D) Individuals Respond to Incentives. Show Answer Correct Answer: B) Risk Return Trade Off. 16. The 40-30-20-10 rule allocates 30% of income to wants A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 17. What is Disposable Income? A) The total income before taxes. B) The total expenses. C) The total savings. D) The amount of money left after taxes, available for spending or saving. Show Answer Correct Answer: D) The amount of money left after taxes, available for spending or saving. 18. Blue print of Financial management is drawn by A) Treasurer. B) Finance manager. C) Auditor. D) Accountant. Show Answer Correct Answer: B) Finance manager. 19. What is the meaning of wants? A) Something that you do not necessarily need it, but you still want it for luxurious lifestyle. B) Something that is needed to live. C) Something that you cannot live without it. D) Something that you like. Show Answer Correct Answer: A) Something that you do not necessarily need it, but you still want it for luxurious lifestyle. 20. What is the number between 300-850 that judges your financial trustworthiness? A) Credit report. B) Credit score. C) Loan. D) Taxes. Show Answer Correct Answer: B) Credit score. 21. According to International Accounting Standards(IAS 1) the objective of general purpose financial statements is to provide information about the financial position, financial performance, and cash flows of an entity that is useful to a wide range of users in making economic decisions. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 22. The cost of equity share capital is greater than the cost of debt because ..... A) Equity shares carry a higher risk than debts. B) The face value of equity shares is lower than the face values of debentures in most cases. C) Equity shares do not provide a fixed dividend rate. D) Equity shares are not easily saleable. Show Answer Correct Answer: A) Equity shares carry a higher risk than debts. 23. For a company, ke = 16%, kd = 8%, kp = 10%, weights are 0.5, 0.3, 0.2 respectively. Find WACC. A) 11.6%. B) 12.8%. C) 10.4%. D) 13%. Show Answer Correct Answer: A) 11.6%. 24. Costs that changedisproportionatelywith changes inoutput levels. A) Fixed Costs. B) Variable Costs. C) Semi Variable Costs. D) None of the above. Show Answer Correct Answer: C) Semi Variable Costs. 25. Average U.S. wages in 1990 were $ 28, 960, far larger than the average wage in 1930 of $ 1, 970. What was the average annual increase in wages over this 60-year period? A) 4.58%. B) 2.45%. C) 24.50%. D) 3.31%. Show Answer Correct Answer: A) 4.58%. ← 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