This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 97 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 97 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the normal balance for Asset accounts? A) Debit. B) Credit. C) All the above. D) None of the above. Show Answer Correct Answer: A) Debit. 2. A smart shopper: A) Compares prices before buying. B) Charges lots of things on a credit card. C) Only uses an ATM card. D) Throws away receipts immediately. Show Answer Correct Answer: A) Compares prices before buying. 3. 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. What is the accounts receivable turnover ratio? A) 29.10. B) 29.09. C) 29.54. D) 30. Show Answer Correct Answer: C) 29.54. 4. Which of the following is not a source of external financing for a public limited company? A) Ovedraft. B) Debentures. C) Retained profit. D) Share capital. Show Answer Correct Answer: C) Retained profit. 5. The systematic process of recording and reporting the financial position of a person or an organization is called, ..... A) Accounts receivable. B) Accounting. C) Generally accepted accounting principals (GAAP). D) Fixed assets. Show Answer Correct Answer: B) Accounting. 6. Contribution-Fixed Cost=? A) EBT. B) EBIT. C) EPS. D) Sales. Show Answer Correct Answer: B) EBIT. 7. The minimum acceptable rate of return on an investment is called the: A) Opportunity cost of capital. B) Capital structure decision. C) Risk. D) Interest payment. Show Answer Correct Answer: A) Opportunity cost of capital. 8. The process of budgeting, saving, investing, spending or otherwise supervising the use of money by an individual or group is ..... A) Money Management. B) Savings Account. C) Checking Account. D) Investment. Show Answer Correct Answer: A) Money Management. 9. A sum of money paid regularly by a company to it's shareholders out of its Profit A) Debenture. B) Divided. C) Division. D) Dividend. Show Answer Correct Answer: D) Dividend. 10. If the fixed cost of production is zero, which one of the following is correct? A) OL is zero. B) FL is zero. C) CL is zero. D) None of the above. Show Answer Correct Answer: D) None of the above. 11. The company uses this account when it reports sales of goods, generally under cost of goods sold in the income statement. A) Balance sheet. B) Assets. C) Current Liabilities. D) Inventory. Show Answer Correct Answer: D) Inventory. 12. What is the purpose of SWOT analysis in strategic planning? A) Assessing employee performance. B) Evaluating market share. C) Analyzing external and internal factors. D) Measuring customer satisfaction. Show Answer Correct Answer: C) Analyzing external and internal factors. 13. Merchants in the Middle Ages used the Bill of Exchange primarily to achieve which benefit in cross-border trade? A) Eliminate the need for banking families. B) Fix exchange rates between city-states. C) Accumulate gold reserves for lending. D) Reduce theft risk and enable remote payment. Show Answer Correct Answer: D) Reduce theft risk and enable remote payment. 14. Type of income tax that is levied on income of individuals, household's partnership and sole-proprietorship. A) Personal Income tax. B) Taxable Income. C) Average Tax Rate. D) Corporation Income Tax. Show Answer Correct Answer: A) Personal Income tax. 15. Long-term debt instruments used by both government and business are known as A) Bonds. B) Equities. C) Stocks. D) Bills. Show Answer Correct Answer: A) Bonds. 16. If the present value of the cash flow X is $ 200, and the present value cash flow Y is $ 150, then the present value of the combined cash flow is: A) $ 200. B) $ 150. C) $ 350. D) $ 50. Show Answer Correct Answer: C) $ 350. 17. Profit Maximisation does not take into consideration: A) Risk and Cash flow. B) Cash Flow and Stock price. C) Risk and EPS. D) EPS and Stock Price. Show Answer Correct Answer: A) Risk and Cash flow. 18. A liquid asset is one that: A) Cannot be converted into cash. B) Is held by the government. C) Can be quickly converted into cash with little risk. D) Requires a long-term investment. Show Answer Correct Answer: C) Can be quickly converted into cash with little risk. 19. Cheapest source of finance A) Equity. B) Debt. C) All the above. D) None of the above. Show Answer Correct Answer: B) Debt. 20. Mr. Spark spends RM2 500 for household expenses every month. How much is the minimum emergency fund needed by him based on Bank Negara Malaysia suggestion?(Hint:Emergency fund is the amount Mr. Spark should have to spend on household if he suddenly doesn't have any income) A) RM15 000. B) RM10 000. C) RM7 500. D) RM12 000. Show Answer Correct Answer: A) RM15 000. 21. What do you call the cost of issuing equity shares? A) Preliminary cost. B) Floatation Cost. C) All the above. D) None of the above. Show Answer Correct Answer: B) Floatation Cost. 22. Short Term Investment Decisions are known as A) Capital Structure Decisions. B) Capital Budgeting Decisions. C) Dividend Decisions. D) Working Capital Management Decisions. Show Answer Correct Answer: D) Working Capital Management Decisions. 23. Which TWO of the following are examples of financial objectives that a company might choose to pursue? A. Dealing honestly and fairly with customers on all occasions B. Provision of good working conditions and industrial relations C. Earning above a particular level of return on capital employed D. Producing environmentally friendly products E. Restricting the level of gearing to below a specified target level A) B & D. B) A & C. C) C & E. D) A & E. Show Answer Correct Answer: C) C & E. 24. To identify the uses of funds in a firm over a time is by A) Increasing in assets. B) Increasing in liabilities. C) Decreasing in assets. D) Selling the stocks. Show Answer Correct Answer: A) Increasing in assets. 25. The followings are the statements that best described for cash budget, except A) The cash forecast of the firm by planning inflows and outflows. B) Depreciation is excluded from the statement. C) Used to estimate short term cash requirements. D) Positive cashflow indicate the firm has surplus cash. Show Answer Correct Answer: D) Positive cashflow indicate the firm has surplus cash. ← 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