This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 93 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 93 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Limit of RFQ in a single procurement in operational budget is- A) 3 Lakh. B) 5 Lakh. C) 10 Lakh. D) 25 Lakh. Show Answer Correct Answer: B) 5 Lakh. 2. Drawings are deducted from:(Year 2015/16) A) Sales. B) Income. C) Capital. D) Expenses. Show Answer Correct Answer: C) Capital. 3. Revenue and expense accounts are extended to A) Retained earning statement. B) Balance sheet section. C) Income statement. D) Accounts payable section. Show Answer Correct Answer: C) Income statement. 4. ..... involves increasing the proportion of debt and preference shares in total capital. A) Trading on equity. B) Capital Budgeting. C) Financing decision. D) Financial Analysis. Show Answer Correct Answer: A) Trading on equity. 5. Financial management is ..... A) A process that involves evaluating financial status from sources of income into creating and carrying out financial plan. B) A process that involves managing money from sources of income into savings, expenses, protection and investment. C) A process that involves spending money wisely and planning short term and long term financial plan. D) None of the above. Show Answer Correct Answer: B) A process that involves managing money from sources of income into savings, expenses, protection and investment. 6. Which of the following is a want A) McDonald's food. B) Sheetz food. C) Dunkin' Donuts food. D) All of these. Show Answer Correct Answer: D) All of these. 7. Commercial Banks normally provide short-term finance which is payable within a week. A) False. B) True. C) All the above. D) None of the above. Show Answer Correct Answer: A) False. 8. Intermediaries that channel the savings of individuals, businesses, and government into loans of investment. A) Private Placements. B) Financial Institutions. C) Public Offering. D) Financial Market. Show Answer Correct Answer: B) Financial Institutions. 9. Purchase of land and building A) Investing Activities. B) Operating Activities. C) Financing Activities. D) None of the above. Show Answer Correct Answer: A) Investing Activities. 10. The main advantage of ARR A) Easy comparisons. B) Money. C) Profit. D) Ignores timing of cash inflow. Show Answer Correct Answer: A) Easy comparisons. 11. The purpose of studying financial statements is ..... A) To mechanically build portfolio analysis. B) To understand those portions of the statements that have relevance for financial decision making. C) To primarily investigate all portions of the statements that have relevance for dividend policy. D) To mechanically learn how to read and understand footnotes. Show Answer Correct Answer: B) To understand those portions of the statements that have relevance for financial decision making. 12. Who is DDO? A) Accounts Officer. B) Office Head. C) Departmental Head. D) Above All. Show Answer Correct Answer: B) Office Head. 13. You dream of endowing a chair in finance at the local university that will provide a salary of $ 150, 000 per year forever, with the first cash flow to be one year from today. If the university promises to invest the money at a rate of 5% per year, how much money must you give the university today to make your dream a reality? A) $ 3, 000, 000. B) $ 15, 000, 000. C) $ 2, 857, 143. D) This question cannot be answered. Show Answer Correct Answer: A) $ 3, 000, 000. 14. How does inflation impact savings? A) It decreases the value of savings over time. B) It increases the value of savings over time. C) It has no effect on savings. D) It only affects investments. Show Answer Correct Answer: A) It decreases the value of savings over time. 15. Cryptocurrency is a low-risk investment with guaranteed returns A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 16. Yield in the airline industry is most accurately defined as: A) Revenue generated per flight. B) Average revenue earned per passenger-mile. C) Total revenue divided by total costs. D) The percentage of available seats that are filled. Show Answer Correct Answer: B) Average revenue earned per passenger-mile. 17. Financial management is concerned with managerial activities relating to A) Planning. B) Procurement and administration of funds. C) Optimum utilisation of funds. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. The federal program that assists older Americans with insurance and income is called A) FICA (Federal Insurance Contribution Act). B) Federal Income Tax. C) State Income Tax. D) Physician's Mutual Insurance. Show Answer Correct Answer: A) FICA (Federal Insurance Contribution Act). 19. What is the main objective of shareholder wealth maximization? A) Increasing employee salaries. B) Enhancing customer service. C) Minimizing company expenses. D) Maximizing market value of shares. Show Answer Correct Answer: D) Maximizing market value of shares. 20. Which one of the following statements concerning a sole proprietorship is correct? A) A Sole proprietorship is designed to protect the personal assets of the owner. B) The owner of a sole proprietorship is personally responsible for all of the company's debts. C) The profits of a sole proprietorship are subject to double taxation. D) A sole proprietorship is structured the same as a limited liability company. Show Answer Correct Answer: B) The owner of a sole proprietorship is personally responsible for all of the company's debts. 21. To measures the value of one currency in units of another currency we can use A) Inflation rate. B) Exchange rate. C) Income level. D) Interest rate. E) Domestic demand. Show Answer Correct Answer: B) Exchange rate. 22. Which of the following considers both risk and time value of money? A) IRR. B) NPV. C) Both a & b. D) Payback. Show Answer Correct Answer: C) Both a & b. 23. Accumulated Depreciation A) Debit. B) Credit. C) All the above. D) None of the above. Show Answer Correct Answer: B) Credit. 24. I want to make my money grow so I can pay for university. A) Spending. B) Saving. C) Investing. D) Donating. Show Answer Correct Answer: C) Investing. 25. What do you call someone who lends money? A) Debenture. B) Creditor. C) Borrower. D) None of the above. Show Answer Correct Answer: B) Creditor. ← 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