This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 86 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 86 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Reconciles the net income earned during a given year and any cash dividends paid A) Statement of Retained Earnings. B) Statement of Cash Flows-. C) Notes to Financial Statements. D) Cash Flow Analysis. Show Answer Correct Answer: A) Statement of Retained Earnings. 2. What field of study is financial management associated with? A) Accounting. B) Economics. C) Engineering. D) Mathematics. Show Answer Correct Answer: A) Accounting. 3. Mongolia was second country to begin using paper money A) 11th Century. B) 12th Century. C) 17th Century. D) 1983. Show Answer Correct Answer: A) 11th Century. 4. 15-Calculate the payback period with the cash flow of the project as following:Year 0 = Cash outflow = $ 15, 000 Year 1 = Cash Inflow = $ 5, 000, Year 2 = $ 7, 000, Year 3 = $ 10, 000, Year 4 = $ 13, 00 A) A-2.4Ys. B) B-2.3Ys. C) C-2.2Ys. D) D-2.6Ys. Show Answer Correct Answer: B) B-2.3Ys. 5. ..... is the area of finance concerned with activities such as borrowing funds to finance projects such as plant expansions or new product launches. A) Working capital management. B) International finance. C) Investments. D) Corporate finance. Show Answer Correct Answer: D) Corporate finance. 6. When you plan how to spend your monthly pocket money, you are doing: A) Accounting. B) Financial Planning. C) Marketing. D) Auditing. Show Answer Correct Answer: B) Financial Planning. 7. Financial statement fraud is the manipulation of the information used to prepare the financial statements released to the public and financial institutions. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 8. Which of the following tasks would typically be carried out by a member of the financial management team? A) Evaluating proposed expansion plans. B) Review of overtime spending. C) Depreciation of non-current assets. D) Apportioning overheads to cost units. Show Answer Correct Answer: A) Evaluating proposed expansion plans. 9. Financial and management accounting are identical in purpose and audience A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 10. ..... is the process of setting financial goals and developing plans to reach them. A) Financial forecasting. B) Budgeting. C) Creating an income statement. D) Financial planning. Show Answer Correct Answer: D) Financial planning. 11. These are the factors that influence market price of the corporation's stocks which are controllable by management, EXCEPT: A) Dividends. B) Competent management. C) Profitability. D) Macroeconomic conditions. Show Answer Correct Answer: D) Macroeconomic conditions. 12. Nature of business is an important factor to decide requirement of fixed capital. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 13. What qualifications are necessary for financial management training? A) A finance degree. B) A degree in accounting. C) At least 5 years of finance experience. D) At least 3 years of accounting experience. Show Answer Correct Answer: D) At least 3 years of accounting experience. 14. Which of the following organisations is most likely to benefit from a period of high price inflation? A) An organisation which has a large number of long term payables. B) An exporter of goods to a country with relatively low inflation. C) A supplier of goods in a market where consumers are highly price sensitive and substitute imported goods are available. D) A large retailer with a high level of inventory on display and low rate of inventory turnover. Show Answer Correct Answer: A) An organisation which has a large number of long term payables. 15. If the discounting factor of year 5 and assuming cost of capital of 5% is $ 0.8, it means that: A) $ 0.8 is the present value of $ 1 in 5 years with annual compounding of 3%. B) $ 0.8 is the present value of $ 1 in 5 years with annual compounding of 5%. C) $ 0.8 is the present value of $ 1 in 3 years with annual compounding of 3%. D) $ 0.8 is the present value of $ 1 in 3 years with annual compounding of 5%. Show Answer Correct Answer: B) $ 0.8 is the present value of $ 1 in 5 years with annual compounding of 5%. 16. From the following particulars, find out combined leverage. Sales Rs.1, 20, 000; Varaible cost Rs.72, 000; Interest Rs.12, 000; Fixed Cost Rs.18, 000. A) 1.60. B) 1.67. C) 2.67. D) 6.27. Show Answer Correct Answer: C) 2.67. 17. The principle of risk-return trade-off means that A) Higher risk investments must earn higher returns. B) An investor who takes more risk will earn a higher return. C) A rational investor will only take on higher risk if he expects a higher return. D) An investor who bought stock in a small corporation five years ago has more money than an investor who bought U.S. Treasury bonds five years ago. Show Answer Correct Answer: C) A rational investor will only take on higher risk if he expects a higher return. 18. The insurance premium against fire and theft of inventories is regarded of following cost? A) Carrying cost. B) Ordering cost. C) Storage cost. D) All the above. Show Answer Correct Answer: C) Storage cost. 19. Which one of the following is an asset? A) Rent. B) Credit card debts. C) Bank loans. D) Cash. Show Answer Correct Answer: D) Cash. 20. To meet the objective of providing information about financial position, financial performance and cash flows of an entity, financial statements should provide information about all of the following, except A) Assets, liabilities and equity. B) Income and expenses, including gains and losses. C) Contributions by and distribution to owners in their capacity as owners. D) Nature of the entity's business activities. Show Answer Correct Answer: D) Nature of the entity's business activities. 21. Under conventional method ..... enters into a calculation of working capital?. A) Cash. B) Current assets. C) Inventories. D) Current liabilities. Show Answer Correct Answer: A) Cash. 22. What is the purpose of a contingency plan? A) To increase market share. B) To manage daily operations. C) To address potential crises or unexpected events. D) To ensure business growth. Show Answer Correct Answer: C) To address potential crises or unexpected events. 23. What are the key factors to consider in investment analysis? A) Historical events unrelated to finance. B) Personal preferences in lifestyle choices. C) Social media trends affecting youth. D) Market conditions, financial performance, economic indicators, industry trends, and risk assessment. Show Answer Correct Answer: D) Market conditions, financial performance, economic indicators, industry trends, and risk assessment. 24. Which agency regulate the money supply in india A) A. The government of india. B) B. Commercial bank. C) C. Reserve bank of india. D) D none of the above. Show Answer Correct Answer: C) C. Reserve bank of india. 25. Which of the following is NOT the characteristics of agricultural finance? A) Valuation of the firm. B) A sub-system of the business system which has other subsystems. C) Involves risk-return trade-off decisions on investment. D) Financial affects the survival, growth and suitality of the firm. Show Answer Correct Answer: D) Financial affects the survival, growth and suitality of the firm. ← 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