This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 8 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT a financial activity? A) Saving money. B) Watching reels. C) Depositing in bank. D) Paying school fees. Show Answer Correct Answer: B) Watching reels. 2. It is a kind of bank which provides facilities of more than one type of banking. A) Commercial Bank. B) Universal Bank. C) Rural Bank. D) Thrift Bank. Show Answer Correct Answer: B) Universal Bank. 3. Cash turnover is an average time required to acquire inventory, sell it and collect money from it. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 4. Which of the following is not a key component in the SMART concept for goal setting? A) Measurable. B) Time-bound. C) Specific. D) Aim. Show Answer Correct Answer: D) Aim. 5. An airline issuing Commercial Paper to fund its short-term operational expenses is utilizing which type of financing? A) Equity Financing. B) Debt Financing. C) Capital Leasing. D) Retained Earnings. Show Answer Correct Answer: B) Debt Financing. 6. What are the key elements of an income statement? A) Assets, liabilities, equity. B) Cash flow, balance sheet, statement of cash flows. C) Revenue, expenses, gains, and losses. D) Interest, dividends, taxes. Show Answer Correct Answer: C) Revenue, expenses, gains, and losses. 7. What is a key benefit of using hybrid securities? A) High liquidity. B) Flexibility in financing. C) Guaranteed returns. D) No risk involved. Show Answer Correct Answer: B) Flexibility in financing. 8. If you invest $ 100, 000 today at 12% interest rate for one year, what is the amount you will have at the end of the year? A) $ 90, 909. B) $ 112, 000. C) $ 100, 000. D) None of the above. Show Answer Correct Answer: B) $ 112, 000. 9. If firm has ke>r the walters model suggest for A) 0% payout. B) 100% payout. C) 50% payout. D) 25% payout less than. Show Answer Correct Answer: B) 100% payout. 10. The time value of money concept recognizes that: A) Money today is worth more than the same amount in the future. B) Money in the future is worth more than the same amount today. C) The value of money is constant over time. D) The value of money is determined by inflation. E) None of the above. Show Answer Correct Answer: A) Money today is worth more than the same amount in the future. 11. Double-entry accounting ensures that: A) Revenue is recorded only when cash is received. B) Each transaction affects only one account. C) Each transaction is recorded in at least two accounts. D) Businesses report weekly profit. Show Answer Correct Answer: C) Each transaction is recorded in at least two accounts. 12. Its failure to consider changes in the purchasing power of currencies. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 13. What is the purpose of distributing value through dividends or share buybacks? A) Minimize cash flow. B) Maximize debt. C) Reward Shareholders. D) Reduce capital structure. Show Answer Correct Answer: C) Reward Shareholders. 14. What are the financial objectives of a business? A) Profitability, Liquidity, Solvency, Growth and Efficiency. B) Profit and Growth. C) Profitability, Solvency, Efficiency and Growth. D) Growth, Profit, Efficiency and Income. Show Answer Correct Answer: A) Profitability, Liquidity, Solvency, Growth and Efficiency. 15. All food expenses are carried out from the money in envelope/ food purse wallet. This is helpful for which form the below: A) Mental Checks. B) Mechanical checks. C) Keeping record. D) Option b & c. Show Answer Correct Answer: B) Mechanical checks. 16. Which does not belong to the group? A) Inventories. B) Land held for Speculation. C) Computer Software. D) Equipment. Show Answer Correct Answer: A) Inventories. 17. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960If total current liabilities amounted to 19, 900, Net Sales for the present year amounted to 480, 000 and the ending receivables totaled to 16, 500. However, it was found out that the ending inventory amounted to 9, 500 and the Cost of Goods Sold totaled to 364, 000. What is the average sale period? A) 9 days. B) 10 days. C) 11 days. D) 12 days. Show Answer Correct Answer: A) 9 days. 18. Which of the following is a secondary objective of financial management? A) Ensuring adequate funds are available. B) Maximizing shareholder wealth. C) Ensuring maximum profitability. D) Ensuring business survival and growth. Show Answer Correct Answer: D) Ensuring business survival and growth. 19. The financial metric calculated as Total Operating Expenses divided by Available Seat Miles (ASMs) is known as: A) Yield. B) PRASM (Passenger Revenue per Available Seat Mile). C) CASM (Cost per Available Seat Mile). D) Load Factor (LF). Show Answer Correct Answer: C) CASM (Cost per Available Seat Mile). 20. Which of the following is not a financial goal? A) Chlid's education fund. B) Genting promotion. C) Paying down payment for house. D) Buying a vacumm cleaner. Show Answer Correct Answer: B) Genting promotion. 21. Investing in government bonds is an example of a high-risk investment A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 22. What is the role of financial manager in relation to allocation of funds? A) To allocate funds in such a manner that they are optimally used. B) To allocate funds randomly without any plan. C) To not allocate any funds. D) To allocate all funds to a single project. Show Answer Correct Answer: A) To allocate funds in such a manner that they are optimally used. 23. Elliott works two jobs, the first he worked 7 hours and makes $ 24.25 and hour, the second he worked 5 hours and makes $ 18.50, what was his total gross pay for that day? A) $ 169.75. B) $ 265.00. C) $ 262.25. D) $ 200.50. Show Answer Correct Answer: C) $ 262.25. 24. Financial management primarily deals with the A) Management of employees. B) Management of production. C) Management of flow of funds. D) Management of marketing activities. Show Answer Correct Answer: C) Management of flow of funds. 25. .... is the advantage to a comapny gained by merging existing resources with another company's resources. A) Consolidation. B) Amalgamation. C) Synergy. D) Acquisition. Show Answer Correct Answer: C) Synergy. ← 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 9Class 12 Business Studies Chapter 9 Financial Management Quiz 10Class 12 Business Studies Chapter 9 Financial Management Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books