This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 77 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 77 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How is return defined in finance? A) Return is the total amount of money invested in a project. B) Return is the fixed interest rate paid on a loan. C) Return is the gain or loss on an investment expressed as a percentage of the initial investment. D) Return is the initial investment amount without any gains or losses. Show Answer Correct Answer: C) Return is the gain or loss on an investment expressed as a percentage of the initial investment. 2. Objectives of financial management A) Profit maximization. B) Wealth maximization. C) Return maximization. D) All of these. Show Answer Correct Answer: D) All of these. 3. Which of the following accounts will be affected when a company purchases fixed assets? A) Capital. B) Cash flows. C) Investment. D) Cash/Bank. Show Answer Correct Answer: A) Capital. 4. "snapshot" . View of the company's financial position at a specific point in time A) Balance. B) Notes to Financial Statements. C) Statement of Cash Flows. D) Balance Sheet. Show Answer Correct Answer: A) Balance. 5. Which of the following is also known as intermediate approach A) NI Approach. B) NOI Approach. C) MM Approach. D) Traditional Approach. Show Answer Correct Answer: D) Traditional Approach. 6. The time value of money means P10 today is worth more than P10 in the future A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 7. ..... of a firm refers to the composition of its long-term funds and its capital structure. A) Capitalisation. B) Over-capitalisation. C) Under-capitalisation. D) Market capitalization. Show Answer Correct Answer: A) Capitalisation. 8. Even though the break-up is hard for fans, the benefits for the city of having a major sports franchise and losing it outweigh never having a franchise. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 9. Purpose of Regular Working Capital is A) To expand the business operations. B) To handle contingencies and uncertainties. C) To keep the primary circulation of cash for wages, salaries, etc. D) To purchase additional machinery. Show Answer Correct Answer: C) To keep the primary circulation of cash for wages, salaries, etc. 10. Ada 7 pisnip managemen keuangan, beberapa diantaranya sbb: A) Accountability, consistency, viability, transparency, accounting standards. B) Consitency, productivity, integrity, open minded. C) Stewardship, viability, continous learning, consistency. D) Productivity, integrity, collectivity, activity. Show Answer Correct Answer: A) Accountability, consistency, viability, transparency, accounting standards. 11. Higher working capital usually results in A) Higher current ratio, higher risk and higher profits. B) Lower current ratio, higher risk and higher profits. C) Higher equitability, lower risk and lower profits. D) Lower equitability, lower risk and higher profits. Show Answer Correct Answer: A) Higher current ratio, higher risk and higher profits. 12. How does borrowing contribute to a company's capital structure? A) Reduces capital. B) Increases equity. C) Adds to liabilities. D) Lowers profitability. Show Answer Correct Answer: C) Adds to liabilities. 13. Non cash expenses are taken into consideration in A) Accounting profit. B) Sunk cost. C) Working capital. D) Cash flows. Show Answer Correct Answer: D) Cash flows. 14. Usually, the first step in the production of the master budget is the: A) Sales forecast. B) Cash budget. C) Production budget. D) None of the above. Show Answer Correct Answer: A) Sales forecast. 15. Used of fixed interest security in the capital structure is called A) Operating leverage. B) Financial leverage. C) Combined leverage. D) All of the above. Show Answer Correct Answer: B) Financial leverage. 16. Which of the following best describes Journal entries? A) Journal entries are records of financial transactions. B) Journal entries are only used for budgeting purposes. C) Journal entries are summaries of annual reports. D) Journal entries are personal notes about financial goals. Show Answer Correct Answer: A) Journal entries are records of financial transactions. 17. ..... provides services and goods to the family members without utilising the money. A) Indirect income. B) Direct income. C) Mental income. D) Budget. Show Answer Correct Answer: B) Direct income. 18. If existing shareholders want to exercise complete control them they should prefer debt. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 19. A company planning an overseas project must adjust its capital budgeting for which additional factors beyond local cash flows and discount rates? A) Limited access to finance from local investors. B) Uniform tax rules and single legal framework. C) Only domestic inflation and interest rates. D) Currency conversion, exchange forecasts, and political risks. Show Answer Correct Answer: D) Currency conversion, exchange forecasts, and political risks. 20. It is essentially the preparation of a financial blueprint of an organisation's future operations. Identify the related concept. A) Financial management. B) Financial planning. C) Capital budgeting decisions. D) Dividend decision. Show Answer Correct Answer: B) Financial planning. 21. EBIT stands for A) Earnings before Interest and Tax. B) Earnings before Indirect tax. C) Earnings before Investment and tax. D) None of these. Show Answer Correct Answer: A) Earnings before Interest and Tax. 22. The summary of the operating, investing and financing activities of the firm is presented in the? A) Statement of Financial Position. B) Statement of Retained Earnings. C) Statement of Comprehensive Income. D) Statement of Cash Flows. Show Answer Correct Answer: D) Statement of Cash Flows. 23. A ..... is a financial plan that reflects anticipated revenue and shows how it will be allocated in the operation of the business. A) Financial forecast. B) Financial plan. C) Accounting equation. D) Budget. Show Answer Correct Answer: D) Budget. 24. Under Bretton Woods, how were major currencies anchored to create stability after World War II? A) Allowed to float within wide bands. B) Tied directly to domestic price indices. C) Indexed to a basket of commodities. D) Pegged to the U.S. dollar linked to gold. Show Answer Correct Answer: D) Pegged to the U.S. dollar linked to gold. 25. What is the main purpose of corporate governance? A T B C D t A) To separate ownership and management control of organisations. B) To maximise shareholder value. C) To facilitate effective management of organisations and to make organisations more visibly accountable to a wider range of stakeholders. D) To ensure that regulatory frameworks are adhered to. Show Answer Correct Answer: C) To facilitate effective management of organisations and to make organisations more visibly accountable to a wider range of stakeholders. ← 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