This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 92 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 92 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When interest rates are stated or given for loan repayments, it is assumed that they are ..... unless specifically stated otherwise. A) Annual percentage rates. B) Compound percentage rates. C) Effective annual rates. D) APYs. Show Answer Correct Answer: A) Annual percentage rates. 2. My mom makes me cut the grass but she pays me when I do. A) Spending. B) Saving. C) Earning. D) Investing. Show Answer Correct Answer: C) Earning. 3. 16-The following cash flow are providedYear 0 = Cash outflow = $ 170, 000Year 1 = Cash Inflow = $ 30, 000, Year 2 = $ 45, 000, Year 3 = $ 55, 000, Year 4 = $ 130, 000 Calculate payback period? A) A = 3 Ys. B) B = 3.31 Ys. C) C = 3.5Ys. D) D = 3.5Ys. Show Answer Correct Answer: B) B = 3.31 Ys. 4. The following are the process of financial management except? A) Determine the financial goal. B) Evaluate the financial position. C) Create a questionnaire about financial policy. D) Review and check progress. Show Answer Correct Answer: C) Create a questionnaire about financial policy. 5. It consists of recognized gains and losses that are not included in the income statement but are found in the equity section A) Income Statement. B) Statement of Changes in Equity. C) Comprehensive Income. D) Statement of Financial Position. Show Answer Correct Answer: C) Comprehensive Income. 6. Capital intensive business organisations require A) Huge working capital. B) Huge fixed capital. C) No fixed capitalno working capital. D) None of the above. Show Answer Correct Answer: B) Huge fixed capital. 7. Which of the following is not an example of short term finance? A) Bank overdraft. B) Cash credit. C) Bills discounting. D) Debentures. Show Answer Correct Answer: D) Debentures. 8. On the asset side, we have ..... as our current asset and ..... as the long-term asset. A) Equipment, inventory. B) Inventory, equipment. C) Equipment, investments. D) Inventory, investments. Show Answer Correct Answer: B) Inventory, equipment. 9. A tool that helps managersto determine thebest way of structuringoperating costs(fixed versus variable). A) Break Even Point. B) Breakeven wedge. C) Cash break even. D) None of the above. Show Answer Correct Answer: B) Breakeven wedge. 10. What is the purpose of financial management? A) To study the management of government revenue. B) To create and study money and investments. C) To maximize allocate assets. D) To manage an individual's finances. Show Answer Correct Answer: C) To maximize allocate assets. 11. The type of collateral (Security) used for short-term loan is ..... A) Real estate. B) Plant and Machinery. C) Stock of Good. D) Equity share Capital. Show Answer Correct Answer: C) Stock of Good. 12. A government body uses measures based upon the 'three Es' to measure value for money generated by a publicly funded hospital.Which of the following relates to efficiency? A) Cost per successfully treated patient. B) Cost per operation. C) Proportion of patients readmitted after unsuccessful treatment. D) Percentage change in doctors' salaries compared with previous year. Show Answer Correct Answer: A) Cost per successfully treated patient. 13. Refers to the fungible and tradable financial instrument used to raise capital in public and private markets. A) Equity. B) Stocks. C) Security. D) Surplus. Show Answer Correct Answer: C) Security. 14. Which of the following is a financial asset? A) Gold. B) Share. C) Silver. D) Land. Show Answer Correct Answer: B) Share. 15. It sets the overall goals and strategies for the company. A) Ignoring market trends. B) Maximizing expenses. C) Minimizing revenue. D) Financial Planning. Show Answer Correct Answer: D) Financial Planning. 16. The dividend irrelevance theory to share valuation was propounded by A) James e Walter. B) Myron Gordon. C) Modi Gilani and Milar. D) None of the above. Show Answer Correct Answer: C) Modi Gilani and Milar. 17. The project with high pay back period will be A) Selected. B) Rejected. C) All the above. D) None of the above. Show Answer Correct Answer: B) Rejected. 18. What does "IRS" stand for? A) Instant Regulation Service. B) Increase Rent Status. C) Internal Revenue Service. D) Invoice Reciept Sale. Show Answer Correct Answer: C) Internal Revenue Service. 19. Setting goals is the first step in the financial management process. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 20. Sistem & kebijakan keuangan harus konsisten tetapi tidak bearti tidak boleh disesuaikan apabila ada perubahan dalam suatu organisasi. Hal ini merupakan salah 1 prinsip dari managemen keuangan, yaitu: A) Transparancy. B) Consistency. C) Accounting standards. D) Accountability. Show Answer Correct Answer: B) Consistency. 21. The following are all features of equity shares except one: A) Voting rights. B) Residual claims on assets. C) Right to control. D) Leads to speculations. Show Answer Correct Answer: D) Leads to speculations. 22. Payment of lease rentals reduces the ..... liability. A) Contingent. B) Tax. C) Loan. D) Long term. Show Answer Correct Answer: B) Tax. 23. The Fisher Effect tells us that the true nominal rate is actually made up of three components. These three components are ..... A) The nominal rate, the real rate, and the inflation rate. B) The real rate, the inflation rate, and the product of the real rate and the nominal rate. C) The real rate, the inflation rate, and the product of the real rate and inflation. D) The real rate and the product of the real rate and inflation. Show Answer Correct Answer: C) The real rate, the inflation rate, and the product of the real rate and inflation. 24. In case of net income approach the cost of equity is A) Constant. B) Fixed. C) Increasing. D) Decreasing. Show Answer Correct Answer: A) Constant. 25. Which financial statement provides a snapshot of a company's financial position at a specific point in time? A) Balance Sheet. B) Income Statement. C) Cash Flow Statement. D) Statement of Retained Earnings. Show Answer Correct Answer: A) Balance Sheet. ← 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