This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 96 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 96 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Leverage ratios includes the following except: A) Debt Ratio. B) Debt to Equity Ratio. C) Cash Ratio. D) Interest Coverage Ratio. Show Answer Correct Answer: C) Cash Ratio. 2. Q4) In financial planning, what is the first step to undertake? A) Investing all available funds. B) Setting a single long-term goal. C) Determining one's risk tolerance. D) Establishing clear financial goals. Show Answer Correct Answer: D) Establishing clear financial goals. 3. Treasury Notes A) Short term debt. B) Long term debt. C) All the above. D) None of the above. Show Answer Correct Answer: B) Long term debt. 4. Working capital management involves investment and financing decisions related to current assets and noncurrent asset. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 5. What are Expenses? A) The costs incurred in the process of earning revenue. B) The total revenue of a business. C) The profit after all costs. D) The money saved by a business. Show Answer Correct Answer: A) The costs incurred in the process of earning revenue. 6. The users of accounting information are ..... A) Internal users. B) External users. C) Internal & External users. D) None of the above. Show Answer Correct Answer: C) Internal & External users. 7. Which of the following is not a feature of a financial plan? A) Simplicity. B) Cost. C) Flexibility. D) Foresight. Show Answer Correct Answer: B) Cost. 8. Financial management refers to: A) Planning, organising and monitoring of financial resources. B) Planning, monitoring and controlling financial resources. C) Planning, organising and controlling financial resources. D) Organising, monitoring and controlling financial resources. Show Answer Correct Answer: C) Planning, organising and controlling financial resources. 9. If a salaried employee earns "$ 77, 500 a year and is paid "bi-monthly", how much is their gross pay per pay period. A) $ 6, 458.33. B) $ 3, 875.00. C) $ 3, 229.16. D) $ 3, 229.17. Show Answer Correct Answer: D) $ 3, 229.17. 10. A company is likely to declare higher dividends if A) Tax rates are high. B) Tax rates are relatively lower. C) Tax rate has no effect on dividend declaration. D) None of the above. Show Answer Correct Answer: B) Tax rates are relatively lower. 11. Which scenario best illustrates foreign exchange risk for a firm operating internationally? A) Fixed exchange rates guarantee constant revenues. B) Stable exchange rates lower hedging expenses. C) Currency boards eliminate all volatility. D) A sudden currency appreciation raises import costs. Show Answer Correct Answer: D) A sudden currency appreciation raises import costs. 12. Barack Obama thinks that the scope of modern financial management has expanded with the introduction of ..... A) Procurement of optimal capital. B) Efficient allocation of capital. C) Capital budgeting technique. D) Financial planning. Show Answer Correct Answer: C) Capital budgeting technique. 13. A ..... net working capital will arise when current assets exceed current liabilities. A) Summative. B) Negative. C) Excessive. D) Positive. Show Answer Correct Answer: D) Positive. 14. Which of the following best describes a forward contract? A) An agreement to exchange currencies at a future date at a predetermined rate. B) An immediate exchange of currencies at the current market rate. C) A contract that gives the right but not obligation to exchange currencies. D) A long-term loan denominated in foreign currency. Show Answer Correct Answer: A) An agreement to exchange currencies at a future date at a predetermined rate. 15. Financial Management mainly focuses on ..... A) Efficient management of every business. B) Brand Dimension. C) Arrangement of funds. D) All elements of acquiring and using means of financial resources for financial activities. Show Answer Correct Answer: D) All elements of acquiring and using means of financial resources for financial activities. 16. There is a shortage of pumpkins due to a rainy summer, so consumers are charged more per item containing pumpkin puree in the fall. A) Market Planning. B) Marketing Information Management. C) Selling. D) Pricing. Show Answer Correct Answer: D) Pricing. 17. Stock market is bullish, company must raise funds through A) Debt. B) Equity. C) Both. D) None. Show Answer Correct Answer: B) Equity. 18. Working Capital = ..... A) Assets-Liabilities. B) Current assets-All liabilities. C) Current assets-Current liabilities. D) Total Current assets only. Show Answer Correct Answer: C) Current assets-Current liabilities. 19. Turnover of capital of trading concern compare with manufacturing concern is A) Higher. B) Lower. C) Equal. D) None of these. Show Answer Correct Answer: B) Lower. 20. Do we need to borrow in the near future? A) Creditors. B) Finance. C) Management. D) Investors. Show Answer Correct Answer: C) Management. 21. 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 inventory turnover ratio? A) 76.63. B) 39.44. C) 52.00. D) 52.04. Show Answer Correct Answer: B) 39.44. 22. Bagaimana cara menghitung Gross Profit margin? A) COGS ( HPP ) / revenue (pemasukan). B) Gross Profit / Net. C) Gross Profit / revenue. D) Sales / Gross Profit. Show Answer Correct Answer: C) Gross Profit / revenue. 23. What is working capital and why is it important? A) Working capital is only relevant for large corporations. B) Working capital is the total value of a company's assets. C) Working capital is the difference between current assets and current liabilities, and it is important because it indicates a company's ability to meet short-term obligations and manage day-to-day operations. D) Working capital is the amount of cash a company has on hand. Show Answer Correct Answer: C) Working capital is the difference between current assets and current liabilities, and it is important because it indicates a company's ability to meet short-term obligations and manage day-to-day operations. 24. The future value of a combination of positive and negative cash flows cannot be determined. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 25. Which of the following statements concerning profit are correct?1. Accounting profit is not the same as economic profit2. Profit takes account of risk3. Accounting profit can be manipulated by managers A) 1 and 3 only. B) 1 and 2 only C. C) 2 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: A) 1 and 3 only. ← 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