Financial Management and Planning
Chapter 10
Review Exercise
1. Indicate if the following statements are ‘True’ or ‘False’.
(i) Budget is the first step in money management.
(True/False) ________
(ii) Money serves as a medium of exchange of commodities.
(True/False) _________
(iii) Profits from business and gifts are a form of income.
(True/False) _________
(iv) One should first estimate the cost and then list the commodities and services needed while making the budget.
(True/False) _________
(v) Savings in physical assets are productive in economic terms. (True/False) _________
(vi) The trend in business cycle is an important consideration under the
principal of safety. (True/False) _________
(vii) The time period may be ignored while considering and deciding on an
investment. (True/False) _________
(viii) The 4 C’s of credit are character, capacity, capital and collateral
(True/False) _________
(ix) Nature of enterprise is not an important safety consideration.
(True/False) _________
Review Questions
(i) What do you understand by ‘management of finances’?
(ii) Discuss the different types of income.
(iii) Discuss the steps in making a budget.
(iv) What are the controls that can be exercised in money management?
(v) Discuss the principles underlying sound investments.
Practical 16
Financial Management and Planning
Plan a budget for any festival celebrated in your school. One example under
each heading is given.
No. of students: 30
No. of teachers: 5
Note: Strike out that which is not applicable.
Questions Type By: Himashree Bora.
Post ID: DABP007171
