This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 76 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 76 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Several techniques are commonly used as part of financial statement analysis. Three of the most important techniques include horizontal analysis, vertical analysis, and ratio analysis. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 2. Which of the following is a common financial goal for individuals? A) Decreasing income. B) Increasing expenses. C) Saving for retirement. D) Borrowing as much money as possible. Show Answer Correct Answer: C) Saving for retirement. 3. What is the primary function of financial management? A) To minimize all financial risks at any cost. B) To focus solely on short-term profits. C) To increase the organization's debt levels. D) To manage an organization's financial resources effectively. Show Answer Correct Answer: D) To manage an organization's financial resources effectively. 4. Breaks down the revenue a company earns against the expenses involved in its business to provide a bottom line, net income profit or loss. A) Balance Sheet. B) Income Statement. C) Cashflow Statement. D) Statement of Changes in Equity. Show Answer Correct Answer: B) Income Statement. 5. How to Correct Credit Errors? A) 1. Circle the incorrect items on your credit report. B) 2. Write a letter to the reporting agency, telling them which information you think is inaccurate. Provide supporting documentation. C) 3. Send all material by certified mail. D) 4. Send a similar letter to the creditor whose reports your disagree with. Their reporting agency will conduct an investigation. E) 5.All of the these are correct. Show Answer Correct Answer: E) 5.All of the these are correct. 6. Fair value of the Machinery is 2, 00, 000 Rs, Life of the Asset is 5 years and Annual lease rental for the asset are Rs 55, 480 for 5 years which are payable at the end of each year. calculate the amount of interest. A) Rs 55, 480. B) Rs 2, 77, 400. C) Rs 77, 400. D) Rs 15, 480. Show Answer Correct Answer: C) Rs 77, 400. 7. The method of converting the amount of the future cash into an amount of cash and cash equivalents value in present is known as A) A. Compounding. B) B. Annuity. C) C discounting. D) D. None of these. Show Answer Correct Answer: C) C discounting. 8. Compounding is the process of calculating the: A) Present value of future cash flows. B) Future value of present cash flows. C) Present value of preset cash flows. D) Future value of future cash flows. Show Answer Correct Answer: B) Future value of present cash flows. 9. Which of the following is an example of an airport's non-aeronautical revenue? A) Landing fees and runway charges. B) Revenue from retail concessions and duty-free shops. C) Air Traffic Control (ATC) fees. D) Gate and counter rental fees charged to airlines. Show Answer Correct Answer: B) Revenue from retail concessions and duty-free shops. 10. An ..... is a review of accounting records and procedures. A) Income statement. B) Financial statement. C) Audit. D) Statement of cash flows. Show Answer Correct Answer: C) Audit. 11. Gross working capital refers to firms investment in ..... ? A) Current liability. B) Working capital. C) Current assets. D) None of these. Show Answer Correct Answer: C) Current assets. 12. External sources of funds are A) Funds from long term loans. B) Sale of fixed assets. C) Both (A) and (B). D) None of the above. Show Answer Correct Answer: A) Funds from long term loans. 13. Which of the following is NOT an example of an Information System? A) A website where you order pizza. B) A database storing your address. C) The system that tells the kitchen to make your pizza. D) A pizza delivery driver. Show Answer Correct Answer: D) A pizza delivery driver. 14. Debits increase which of the following: A) Assets and Expenses. B) Liabilities and Equity. C) Revenues and Equity. D) None of the above. Show Answer Correct Answer: A) Assets and Expenses. 15. What is the main function of a financial manager related to understanding capital markets? A) Clear understanding of risks associated with trading stocks and debentures. B) Clear understanding of risks associated with investing in real estate. C) Clear understanding of risks associated with starting a new business. D) Clear understanding of risks associated with international trade. Show Answer Correct Answer: A) Clear understanding of risks associated with trading stocks and debentures. 16. The degree of combined leverage is A) The percentage change in sales divided by the percentage change in earnings per share. B) The percentage change in earnings before interest and taxes divided by the percentages change in sales. C) The degree of operating leverage divided by the degree of financial leverage. D) The percentage change in earnings per share divided by the percentage change in sales. Show Answer Correct Answer: D) The percentage change in earnings per share divided by the percentage change in sales. 17. Managerial finance A) Involves tasks such as budgeting, financial forecasting, cash management, and funds procurement. B) Involves the design and delivery of advice and financial products. C) Recognizes funds on an accrual basis. D) All of the above. Show Answer Correct Answer: A) Involves tasks such as budgeting, financial forecasting, cash management, and funds procurement. 18. Which of the following is not a goal of financial management? A) Maximization of shareholder's Wealth. B) Minimization of Cost. C) Maximization of market value of Shares. D) Minimization of Revenue. Show Answer Correct Answer: D) Minimization of Revenue. 19. The amount of money you earn before taxes are taken out is your ..... A) Net Income. B) Gross Income. C) Savings. D) Balance. Show Answer Correct Answer: B) Gross Income. 20. The job of a finance manager is confined to A) Raising of funds. B) Management of Cash. C) Raising of Funds and their effective utilization. D) None of the above. Show Answer Correct Answer: C) Raising of Funds and their effective utilization. 21. . Traditional approach confines finance function only to ..... funds A) Raising. B) Mobilizing. C) Utilizing. D) Financing. Show Answer Correct Answer: A) Raising. 22. The sooner cash is received, the more ..... it is. A) Money. B) Wealth. C) Valuable. D) Financial. Show Answer Correct Answer: C) Valuable. 23. .... permanent capital and cannot be withdrawn during the lifetime of the company? A) Equity financing. B) Debt financing. C) Debt equity mix. D) None of above. Show Answer Correct Answer: A) Equity financing. 24. Having lots of credit cards shows that you are an important person. A) Fact. B) Fiction. C) All the above. D) None of the above. Show Answer Correct Answer: B) Fiction. 25. Market value of the shares are decided by ..... A) The respective companies. B) The investment market. C) Shareholders. D) The government. Show Answer Correct Answer: C) Shareholders. ← 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