This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 98 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 98 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. PBP is calculated when the incomes or return are equal by the formula A) Original outlay/ uncovered amount of project. B) Year before full recovery+(Uncovered amt/ cash flow during the year). C) Original cost/ annual return of the project. D) None of the above. Show Answer Correct Answer: C) Original cost/ annual return of the project. 2. The extent to which an organisation uses fixed cost on its total structure is called A) Overall leverage. B) Financial leverage. C) Fixed Leverage. D) Operating leverage. Show Answer Correct Answer: D) Operating leverage. 3. Explanatory notes that provide detailed information on the accounting policies, calculations and transactions A) Notes to Financial Statements. B) Cash Flow Analysis. C) Statement of Cash Flows. D) Statement of Retained Earnings. Show Answer Correct Answer: A) Notes to Financial Statements. 4. Which of the following best describes a stock? A) A type of loan. B) An ownership share in a company. C) A type of savings account. D) A fixed income security. Show Answer Correct Answer: B) An ownership share in a company. 5. Belle worked a 40 hour work week and makes $ 17.50 an hour, what was her gross pay for the week? A) $ 700.00. B) $ 650.00. C) $ 705.oo. D) $ 710.00. Show Answer Correct Answer: A) $ 700.00. 6. Your company just sold a product with the following payment plan:$ 40, 000 today, $ 35, 000 next year, and $ 30, 000 the following year. If your firm places the payments into an account earning 6% per year, how much money will be in the account after collecting the last payment? A) $ 118, 767. B) $ 112, 044. C) $ 94, 074. D) $ 85, 000. Show Answer Correct Answer: B) $ 112, 044. 7. Short term sources of funds are those that will mature in at most 12 months and the interest is generally lower as compared to that of long term sources. Hence, this would lead to a lower financing cost. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 8. What does a cash budget help financial managers to anticipate? A) Loan needs, debt repayments, operating costs, and short-term investments. B) Report a company's assets, liabilities and shareholders' equity at a specific point in time. C) Profit margin or a company in a specific point in time. D) None of the above. Show Answer Correct Answer: A) Loan needs, debt repayments, operating costs, and short-term investments. 9. What is the formula for calculating the Net Present Value (NPV) of a project or investment? A) NPV = Initial Investment / Annual Cash Flow. B) NPV = Future Value / Present Value. C) NPV = Present Value-Initial Investment. D) NPV = Total Revenue-Total Expenses. Show Answer Correct Answer: C) NPV = Present Value-Initial Investment. 10. ..... include banks, insurance companies, and lending institutions, among others. A) Financial management. B) Finance. C) Finance management. D) Financial institutions. Show Answer Correct Answer: D) Financial institutions. 11. The objectives or goals of financial management are to maximize ..... ? A) Sales. B) Profits. C) Owner's wealth. D) Total assets. Show Answer Correct Answer: C) Owner's wealth. 12. Current assets are the assets that are either used up or converted to cash during the normal cycle of business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 13. Berikut ini merupakan pendekatan investasi, kecuali: A) Konservatif. B) Proaktif. C) Moderat. D) Agresif. Show Answer Correct Answer: B) Proaktif. 14. Financial planning is a ..... not a product. A) Activity. B) Process. C) Assignment. D) None of the above. Show Answer Correct Answer: B) Process. 15. Financial instruments are: A) Debt securities. B) Equity securities. C) Derivatives. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Increase in accounts receivable A) Operating Activities. B) Investing Activites. C) Financing Activities. D) None of the above. Show Answer Correct Answer: A) Operating Activities. 17. Budgeting helps you control your spending and avoid getting into debt A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 18. A company with high growth plans must A) Distribute liberal dividend. B) Distribute less dividend. C) Distribute no dividend. D) None of the above. Show Answer Correct Answer: B) Distribute less dividend. 19. What is Income? A) The expenses incurred by a business. B) The total amount of money received by a business from its activities. C) The total amount of money spent by a business. D) The profit made by a business. Show Answer Correct Answer: B) The total amount of money received by a business from its activities. 20. ..... refers to a firm holding some cash to meet its routine expenses that are incurred in the ordinary course of business. A) Speculative motive. B) Transaction motive. C) Precautionary motive. D) Compensating motive. Show Answer Correct Answer: B) Transaction motive. 21. What is the purpose of a business plan in corporate management? A) Maximizing customer satisfaction. B) Guiding business operations. C) Maximizing market share. D) Minimizing environmental impact. Show Answer Correct Answer: B) Guiding business operations. 22. Which market directly contributes for capital formation and increase in capital of firms? A) (a) Primary market. B) (b) Secondary market. C) C) Both (a) and (b). D) (d) None of the above. Show Answer Correct Answer: A) (a) Primary market. 23. Supply-side government policy is designed for what purpose? A) To raise the level of aggregate monetary demand in the economy. B) To manage the money supply in the economy. C) To improve the ability of the economy to produce goods and services. D) To reduce unemployment by limiting the supply of labour. Show Answer Correct Answer: C) To improve the ability of the economy to produce goods and services. 24. .... model of cash management attempts to minimization of total cost? A) A. S.F Bradley. B) B. Baumal's. C) C. Miller-orr. D) None of the above. Show Answer Correct Answer: B) B. Baumal's. 25. This means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. A) Capital structure. B) Investment. C) Financial Decision. D) Financial management. Show Answer Correct Answer: D) Financial management. ← 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