FinMa PDF
FinMa PDF
FinMa PDF
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Select one:
a. Personnel Management
b. Acquiring Necessary Capital
c. Forecasting Financial Requirements
d. Cash Management
Feedback
Question 2
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Select one:
a. With the help of strong financial control devices such as budgetary control, ratio analysis and cost
volume profit analysis, financial management can improve the profitability position of the business
b. Effective financial management helps you promote and mobilize individual and corporate savings
c. Financial management is essential in the business especially in the corporate sectors.
d. Financial decision will affect the entire business operation because decisions have indirect
Question 3
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Select one:
a. Profit maximization
b. Revenue maximization
c. Wealth maximization
d. Expense minimization
Feedback
Question 4
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Select one:
a. Financial Planning
b. Profit Maximization
c. Wealth maximization
d. Financial Management
Feedback
The correct answer is: Profit Maximization
Question 5
Incorrect
Mark 0.00 out of 1.00
Flag question
Question text
Identify the function being described: The board of directors and finance manager decided to offer
stocks to the public so that they can have the resources for business expansion.
Select one:
Question 6
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Identify what is being described. The company had a net profit after taxes worth Php
1,000,000. The board and the management decided not to distribute dividends to shareholders
instead, it retained its earnings for the year so that the business can have resources for future use.
Select one:
a. Savings Promotion
b. Improvement of profitability
c. Proper use of funds
Question 7
Correct
Mark 1.00 out of 1.00
Flag question
Question text
This is concerned with the acquisition, financing, and management of assets with some overall goal
in mind. Its decision function includes areas such as investment, financing, and asset management
decisions
Select one:
a. Managerial Accounting
b. Financial Management
c. Financial Accounting
d. Financial Concern
Feedback
Question 8
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Select one:
a. One of the benefits of being a financial manager is that you can get funds in the business entity
without prior approval.
b. The finance manager must posses knowledge in the areas of accounting, finance, economics and
management.
c. A financial manager just delegates the responsibilities to his people and just wait for the results.
d. All of the statements are correct.
Feedback
The correct answer is: The finance manager must posses knowledge in the areas of accounting,
finance, economics and management.
Question 9
Incorrect
Mark 0.00 out of 1.00
Flag question
Question text
Select one:
a. Wealth maximization
b. Expense minimization
c. Profit maximization
d. Revenue maximization
Feedback
Question 10
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Types of finance that concerns with the tax collection, revenue projection and disbursement of the
Government.
Select one:
a. Investment
b. Profit Maximization
c. Wealth maximization
d. Public Finance
Feedback
a. Ratio Analysis
b. Vertical Analysis
c. Financial Statement
d. Internal Analysis
Feedback
Question 2
Correct
Flag question
Question text
This measure a company’s ability to meet its debt obligations as they come using its
current assets.
Select one:
a. Activity Ratio
b. Liquidity ratio
c. Profitability Ratio
d. Efficiency ratio
Feedback
Question 3
Correct
Flag question
Question text
All else being equal, which of the following will increase a company’s current ratio?
Select one:
Feedback
Question 4
Incorrect
Question text
Company A’s ROE is 20 percent, while Company B’s ROE is 15 percent. Which of the following
statements can be true?
Select one:
b. None of these
Feedback
The correct answer is: Company A and Company B have equal amount of Equity.
Question 5
Correct
Flag question
Question text
Amazona company wants to increase its debt to total assets ratio, which of the following
activities could make this possible?
Select one:
c. Make a loan
Feedback
Question 6
Incorrect
Flag question
Question text
This ratio measures a company's ability to use its assets to generate income.
Select one:
a. Efficiency ratio
b. Liquidity ratio
c. Activity Ratio
d. Profitability Ratio
Feedback
Question 7
Correct
Question text
Selzer Inc. has a net profit after taxes worth 62,195. It has a total assets worth 3 million, with a
debt-to-equity ratio of 0.64. What is the firm’s return on equity (ROE)?
Select one:
a. 71.0%
b. 3.4%
c. 7.1%
d. 33.4%
Feedback
Question 8
Correct
Flag question
Question text
Stakeholders of the company that uses financial statement in analysis for Asset and
liability management and generate decision for business operations.
Select one:
c. Creditors
d. Investors
Feedback
Question 9
Correct
Flag question
Question text
c. Buy merchandise
d. none of these
Feedback
The correct answer is: Sell merchandise with 20% mark-up from the original price
Question 10
Correct
Question text
Stennett Corp.’s CFO has proposed that the company made a new debt and used the proceeds
to buy equipment. Which of the following is likely to occur if this proposal is adopted?
Select one:
Feedback
Minden Co has current assets that consist of cash: Php20,000, receivables: Php70,000 and
inventory: Php90,000. Current liabilities are Php75,000. The current ratio is:
Select one:
a. 2
b. 2.4
c. 3.2
d. 2.2
Question 2
Complete
Question text
a. leverage ratios
b. profitability ratios
c. activity ratios
d. liquidity ratios
Question 3
Complete
Flag question
Question text
Total asset turnover, receivables turnover and inventory turnover ratios measure
Select one:
a. liquidity
b. profitability
c. efficiency
d. efficacy
Question 4
Complete
Flag question
Question text
Its objective is to provide information about the financial position and the financial
performance and cash flows of an entity that is useful to a wide range of users in making
economic decisions
Select one:
a. Financial Statements
Question 5
Complete
Flag question
Question text
Question 6
Complete
Flag question
Question text
b. current assets less inventory, less prepaid expenses. The resulting amount will then be
divided by current liabilities
Question 7
Complete
Flag question
Question text
Shepherd Enterprises has a debt-to-equity ratio of 40 percent. The company’s total assets is
equal to Php 800 million. What is the value of the company's total liabilities?
Select one:
a. Php 320,000,000
b. Php 2,400,000,000
c. Php 458,428,472
d. Php 228,571,429
Question 8
Complete
Flag question
Question text
FPL Company has cash and cash equivalents worth 10,000; equipment worth 20,000; accounts
receivable worth 15,000; notes receivable worth 12,000 ; accounts payable worth 10,000 and
notes payable worth 5,000 maturing after one month. What is the current ratio?
Select one:
a. 3.7
b. 2.5
c. 2.47
d. 1.67
Question 9
Complete
Question text
The Merriam Company has determined that its return on equity is 15 percent. Management is
interested in the various components that went into this calculation. You are given the
following information: (total debt)/(total assets) = 0.35 and total assets = 1,000,000. What is the
net income?
Select one:
a. 23,333
b. 428,571
c. 52,500
d. 97,500
Question 10
Complete
Flag question
Question text
a. Quick ratio
b. Debt ratio
Question 11
Complete
Flag question
Question text
FPL Co. Statement of Financial Position has Total Assets worth 100,000 wherein 60,000 is non-
current. It also has Total Liabilities worth 200,000 wherein 80,000 is non-current. It was found
out that there was an unrecorded depreciation worth 20,000 and unrecorded purchase of
merchandise on account worth 15,000. What is the current ratio?
Select one:
a. 0.56
b. 0.26
c. 0.41
d. 0.50
Question 12
Complete
Flag question
Question text
a. 24,000
b. 4,500
c. 12,000
d. 3,600
Question 13
Complete
Flag question
Question text
This analysis is usually used to understand operational performance of the entity to help in
making their business decisions.
Select one:
a. Overall Analysis
b. External Audit
c. Internal Analysis
d. External Analysis
Question 14
Complete
Question text
Minden Co has current assets that consist of cash: 20,000, receivables: 70,000 and inventory:
90,000. Current liabilities are 75,000. The quick ratio is
Select one:
a. 2.2
b. 1.2
c. 3.2
d. 2
Question 15
Complete
Flag question
Question text
In this type of analysis you may compare figures from several years, so you are comparing the
amounts in each account from the past up to the present.
Select one:
a. internal analysis
b. horizontal analysis
c. external audit
d. vertical analysis
Question 16
Complete
Flag question
Question text
c. none of these
Question 17
Complete
Flag question
Question text
Fana’s American Bakery has a return on assets (ROA) of 10 percent and a return on equity (ROE)
of 14 percent. If total assets is 100,000, what is the value of its total equity?
Select one:
a. 1,400,000
b. 71,429
c. 7,143
d. 14,000
Question 18
Complete
Flag question
Question text
The current assets and current liabilities of FPL company is 10 and 20 respectively. Reviewing
the past transactions the company purchased merchandise worth 5 and it was immediately
paid. However, it was discovered that this transaction was mistakenly recorded as a purchase
on account. After adjusting the errors, what is the the current ratio?
Select one:
a. 0.33
b. 1
c. 0.5
d. 0.4
Question 19
Complete
Flag question
Question text
Ratios that measure the ability of the company to pay its short-term debts are called:
Select one:
a. profitability ratios
b. liquidity ratios
c. leverage ratios
d. activity ratios
Question 20
Complete
Flag question
Question text
Fama’s French Bakery has a return on assets (ROA) of 10 percent and a return on equity (ROE)
of 14 percent. If equity is equal to 100,000. What is the value of total assets?
Select one:
a. 1,400
b. 14,000
c. 140,000
d. 1,400,000
Question 1
Correct
Question text
a. FPL Co. made trade credit from ABC Co. This is because the company has no enough
resources to pay the amount immediately.
b. Mr. P made a written promise to pay to Mr B the ammount of 1,000,000 within 1 medium
year.
c. FPL Co. had a net income after taxes worth 10,000,000. It decided to distribute 4,000,000 as
dividends and retained 6,000,000 for future business use.
Feedback
The correct answer is: FPL Co. Loaned an amount payable in 2 years.
Question 2
Correct
Flag question
Question text
c. medium-term sources
Feedback
Question 3
Correct
Flag question
Question text
In this type of financing, the business entity which has already operated may get funds
internally from depreciation funds and retained earnings.
Select one:
a. Security Financing
b. Internal financing
c. Mixed Financing
d. Loan Financing
Feedback
Question 4
Correct
Question text
These are funds that are required to purchase fixed assets such as land, building, plant,
machinery, furniture and fixtures.
Select one:
a. Variable Capital
b. Working capital
c. Fixed Capital
d. Semi-variable Capital
Feedback
Question 5
Correct
Flag question
Question text
a. lease financing
b. commercial papers
c. Retained Earnings
d. debentures
Feedback
Question 6
Correct
Flag question
Question text
This type financing borrows money with interest from financial institutions such as banks and
credit-unions.
Select one:
a. Security Financing
b. Loan Financing
c. Mixed Financing
d. Internal financing
Feedback
Question 7
Correct
Question text
Select one:
a. Fixed Capital
b. Working capital
c. Semi-variable Capital
d. Variable Capital
Feedback
Question 8
Correct
Flag question
Question text
Select one:
a. none of these
b. debentures
c. equity shares
d. retained earnings
Feedback
Question 9
Incorrect
Flag question
Question text
Analyze the given choices and identify which one is not included when these finances will be
classified on the basis of source of generation.
Select one:
a. Debentures
b. Public Deposits
c. Retained Earnings
d. Loans
Feedback
Question 10
Correct
Question text
This is a form of financing which is mobilized through the issuance of securities such as shares
and debenture
Select one:
a. Loan Financing
b. Mixed Financing
c. Security Financing
d. Internal financing
Feedback
Question 1
Correct
Flag question
Question text
a. FPL Co. made trade credit from ABC Co. This is because the company has no enough
resources to pay the amount immediately.
b. Mr. P made a written promise to pay to Mr B the ammount of 1,000,000 within 1 medium
year.
c. FPL Co. had a net income after taxes worth 10,000,000. It decided to distribute 4,000,000 as
dividends and retained 6,000,000 for future business use.
Feedback
The correct answer is: FPL Co. Loaned an amount payable in 2 years.
Question 2
Correct
Flag question
Question text
b. External Sources
c. medium-term sources
Feedback
Question 3
Correct
Mark 1.00 out of 1.00
Flag question
Question text
In this type of financing, the business entity which has already operated may get funds
internally from depreciation funds and retained earnings.
Select one:
a. Security Financing
b. Internal financing
c. Mixed Financing
d. Loan Financing
Feedback
Question 4
Correct
Flag question
Question text
These are funds that are required to purchase fixed assets such as land, building, plant,
machinery, furniture and fixtures.
Select one:
a. Variable Capital
b. Working capital
c. Fixed Capital
d. Semi-variable Capital
Feedback
Question 5
Correct
Flag question
Question text
a. lease financing
b. commercial papers
c. Retained Earnings
d. debentures
Feedback
Question 6
Correct
Mark 1.00 out of 1.00
Flag question
Question text
This type financing borrows money with interest from financial institutions such as banks and
credit-unions.
Select one:
a. Security Financing
b. Loan Financing
c. Mixed Financing
d. Internal financing
Feedback
Question 7
Correct
Flag question
Question text
Select one:
a. Fixed Capital
b. Working capital
c. Semi-variable Capital
d. Variable Capital
Feedback
Question 8
Correct
Flag question
Question text
Select one:
a. none of these
b. debentures
c. equity shares
d. retained earnings
Feedback
Question 9
Incorrect
Question text
Analyze the given choices and identify which one is not included when these finances will be
classified on the basis of source of generation.
Select one:
a. Debentures
b. Public Deposits
c. Retained Earnings
d. Loans
Feedback
Question 10
Correct
Flag question
Question text
This is a form of financing which is mobilized through the issuance of securities such as shares
and debenture
Select one:
a. Loan Financing
b. Mixed Financing
c. Security Financing
d. Internal financing
Feedback
This is the use of various financial instruments or borrowed capital, such as margin, to increase
the potential return of an investment.
Select one:
a. efficacy
b. efficiency
c. leverage
d. capital efficiency
Feedback
Question 2
Correct
Flag question
Question text
This is the required return on investment of the common shareholders of the company.
Select one:
a. Return on Equity
b. Return on Investment
c. Cost of Equity
Feedback
Question 3
Correct
Flag question
Question text
Select one:
Feedback
Question 4
Correct
Mark 1.00 out of 1.00
Flag question
Question text
This is the required return on investment of the preferred shareholders of the company.
Select one:
a. Return on Investment
d. Cost of capital
Feedback
Question 5
Correct
Flag question
Question text
This is the mix or proportion of a firm’s permanent long-term financing represented by debt,
preferred stock, and common stock equity.
Select one:
c. Retained earnings
d. Investment Mix
Feedback
Question 6
Correct
Flag question
Question text
a. Total return
b. Cost of debt
c. Cost of capital
d. Return on debt
Feedback
Question 7
Correct
Question text
Select one:
a. Return on debt
b. Total return
c. Cost of debt
d. Cost of capital
Feedback
Question 8
Correct
Flag question
Question text
This is a measurement of the degree to which a firm or project incurs a combination of fixed
and variable costs
Select one:
c. Leverage
Feedback
Question 9
Correct
Flag question
Question text
Select one:
a. Return on debt
b. Cost of capital
c. Cost of debt
d. Total return
Feedback
Question 10
Correct
Question text
This is a metric that measures the degree to which a company uses fixed income securities
such as debt and preferred equity.
Select one:
a. Leverage
Feedback
FPL Company plans to make Php50,000 loan with Php7,000 annual interest. If the cost incurred
related to this instrument is Php2,000 and the total tax rate is 30%, what is the cost of debt?
Select one:
a. 10.21%
b. 10.00%
c. 4.38%
d. 9.80%
Question 2
Complete
Question text
Select one:
a. Long-term source
b. Owner's funds
c. Short-term source
d. borrowed funds
Question 3
Complete
Flag question
Question text
FLP Company has 1000 existing common shares. The market value of the share is Php 90 and
the net earnings is Php 1,000. What is the cost of Capital assuming that the new shares will be
issued at market price?
Select one:
a. 1.11%
b. 0.11%
c. 0.01%
d. 11.11%
Question 4
Complete
Flag question
Question text
These are sources of finances which have a required of payment for a period not exceeding one
year.
Select one:
a. Perpetual
b. Medium-term
c. Long-term
d. Short-term
Question 5
Complete
Flag question
Question text
Given:
Debt= 1,000,000 ; Common Shares = 10,000,000 ; Preference Shares = 5,000,000
Cost of Debt = 10% ; Cost of Preference Shares = 5% ; Cost of Equity = 3%
Find WACC
Select one:
a. 1,050,000
b. 1,250,000
c. 650,000
d. 750,000
Question 6
Complete
Flag question
Question text
If you have a financial source that is required to be paid within four years, you have a
Select one:
a. Long-term source
b. Medium-term source
c. Perpetual source
d. Short-term source
Question 7
Complete
Question text
Select one:
c. Intermediate Approach
Question 8
Complete
Flag question
Question text
In this approach, the mix of debt and equity capital can increase the value of the firm by
reducing overall cost of capital up to certain level of debt.
Select one:
a. Intermediate Approach
Question 9
Complete
Flag question
Question text
A corporation is issuing 10% common stock that should be sold for Php 15 each. The business
will incur flotation costs of Php 5 per share. What is the cost of equity?
Select one:
a. 10%
b. 15%
c. 3%
d. 33.3%
Question 10
Complete
Flag question
Question text
These are source of finances are those which are required for a period of more than five years.
Select one:
a. Short-term
b. Perpetual
c. Medium-term
d. Long-term
Question 11
Complete
Flag question
Question text
If you have a financial source that is required to be paid within ten years, this describes
Select one:
a. Perpetual source
b. Long-term source
c. Short-term source
d. Medium-term source
Question 12
Complete
Flag question
Question text
According to this approach, the mix of debt and equity capital can increase the value of the firm
by reducing overall cost of capital up to certain level of debt.
Select one:
a. Classical Approach
b. Traditional Approach
c. Modern Approach
d. Medieval Approach
Question 13
Complete
Flag question
Question text
A corporation is issuing 10% common stock that should be sold for Php 15 each. The business
will incur flotation costs of Php 2 per share. With growth rate of 5% What is the cost of capital?
Select one:
a. 16.54%
b. 61.54%
c. 4.12%
d. 13.54%
Question 14
Complete
Question text
This policy is usually used when the companies are facing constraints of earnings and
unsuccessful business operation
Select one:
b. Unstable Policy
Question 15
Complete
Flag question
Question text
Identify what is being described. ABC manufacturing business purchases materials worth Php
1,000,000 from X company. the ammount is payable within 2 months.
Select one:
a. trade credit
b. notes
c. debentures
d. bank loan
Question 16
Complete
Flag question
Question text
Which of the following is not considered a capital component for the purpose of calculating the
weighted average cost of capital (WACC) as it applies to capital budgeting?
Select one:
a. Long-term debt
b. preferred Stock
c. Common Stock
d. Accruals
Question 17
Complete
Flag question
Question text
The objective of having a good _____________________ is to maximize the value of the firm and
minimize the overall cost of capital.
Select one:
a. Operations
b. Income
c. Capital structure
d. Business
Question 18
Complete
Flag question
Question text
This determines the amount of profit to be distributed among shareholders and amount of
profit to be treated as retained earnings for financing its long term growth
Select one:
a. Dividend Policy
Question 19
Complete
Flag question
Question text
Select one:
a. based on period
b. based on ownership
c. based on interest
d. based on generation
Question 20
Complete
Flag question
Question text
Select one:
a. trade credit
b. Commercial papers
c. preference shares
d. retained earnings
Question 1
Correct
Question text
Examples of this outlay are the purchase of fixed assets such as land and building, plant and
machinery, expenses relating to improvement or renovation these fixed assets and costs
incurred for the research and development projects
Select one:
a. Working Capital
b. Fixed capital
c. Working Assets
d. Fixed Assets
Feedback
Question 2
Correct
Flag question
Question text
Which of the following has a wrong order based on the discussion in capital budgeting process
Select one:
Feedback
The correct answer is: Matching of Proposals- Performance Review - Final Approval
Question 3
Correct
Flag question
Question text
Which of the following has a wrong order based on the discussion in capital budgeting process
Select one:
Feedback
Question 4
Correct
Question text
This is a statistical measure of the variability of a distribution around its mean. It is the square
root of the variance.
Select one:
c. Expected value
d. Standard deviation
Feedback
Question 5
Correct
Flag question
Question text
Which of the following has a wrong order based on the discussion in capital budgeting process
Select one:
Feedback
The correct answer is: Matching of Proposals- Performance Review - Final Approval
Question 6
Correct
Flag question
Question text
This type of decision making applies when the projects proposed are independent from each
other. The acceptance or rejection of one proposal does not affect the decision on the other
proposals.
Select one:
b. Mutually Exclusive
c. Capital Rationing
d. Accept-Reject
Feedback
Question 7
Correct
Question text
This is a decision support tool that uses a tree-like graph or model of decisions and their
possible consequences, including chance event outcomes, resource costs, and utility.
Select one:
Feedback
Question 8
Correct
Flag question
Question text
These proposals are those that compete with other. Therefore, the acceptance of one proposal
will exclude the acceptance of the other proposals.
Select one:
a. Mutually Exclusive
b. none of the above
c. Accept-Reject
d. Capital Rationing
Feedback
Question 9
Correct
Flag question
Question text
a. Fixing property
c. Performance Review
d. Screening proposals
Feedback
Question 10
Correct
Question text
This is the process in which a business determines and evaluates potential expenses or
investments that are large in nature.
Select one:
a. Monetary Management
b. Capital Budgeting
c. Financial Capital
d. Investment-expense Analysis
Feedback
Question 1
Correct
Flag question
Question text
FPL Company has a gross working capital of 100,000 and the company has 200,000 total
liabilities of which 150,000 are long term debts. What is the net capital?
Select one:
a. 50,000
b. 150,000
c. 100,000
d. 250,000
Feedback
Question 2
Correct
Flag question
Question text
FPL Company has a total Assets worth 400,000 of which 250,000 are non current the company
also has 200,000 total liabilities of which 150,000 are long term debts. What is the gross working
capital?
Select one:
a. 100,000
b. 300,000
c. 200,000
d. 150,000
Feedback
Question 3
Correct
Mark 1.00 out of 1.00
Flag question
Question text
This is the capital invested in total current assets of the business concern.
Select one:
a. Financial casipal
d. Fixed Capital
Feedback
Question 4
Correct
Flag question
Question text
FPL Company has a net working capital of 100,000 and the company has 200,000 total liabilities
of which 150,000 are long term debts. What is the gross capital?
Select one:
a. 300,000
b. 200,000
c. 150,000
d. 250,000
Feedback
Question 5
Correct
Flag question
Question text
This is a measure of both a company's efficiency and its short-term financial health.
Select one:
a. Fixed Capital
b. Net Capital
c. Working Capital
d. Financial Capital
Feedback
Question 6
Correct
Question text
This refers to the level of inventory at which the total cost of inventory comprising ordering cost
and carrying cost.
Select one:
a. Standard deviation
d. ABC Analysis
Feedback
Question 7
Correct
Flag question
Question text
a. Transaction motive
b. Precautionary motive
c. Auto Motive
d. Speculative motive
Feedback
Question 8
Correct
Flag question
Question text
FPL Company has a gross working capital of 100,000 and the company has 200,000 total
liabilities of which 150,000 are long term debts. What is the total current assets?
Select one:
a. 100,000
b. 150,000
c. 250,000
d. 50,000
Feedback
Question 9
Correct
Question text
FPL Company owes Php20,000 to supplier A, Php30,000 to Supplier B, 50,000 to Supplier C and
a long term bonds payable 10,000. After struggling in its operations, the company ended up
having Php20,000 cash on hand, Php30,000 worth inventories, Php40,000 Accounts receivable
and equipment worth Php50,000. What is the net working capital?
Select one:
a. Php 30,000
b. none of these
c. Php 40,000
d. Php 70,000
Feedback
Question 10
Correct
Flag question
Question text
FPL company has machineries and equipment worth 150,000, land and building for business
1,000,000, Cash 150,000, Inventories 30,000 and accounts receivables 50,000. He also owes
200,000 to a bank. How much is the gross working capital?
Select one:
a. Php 1,180,000
b. Php 230,000
c. Php 1,380,000
d. Php 380,000
Feedback
Question 1
Complete
Flag question
Question text
This is the rise in inflation that leads to reduction in the purchasing power which influences only
few people to invest due to Interest Rate Risk which is nothing but the variability of return of
the investment due to oscillation of interest rates due to deflationary and inflationary
pressures.
Select one:
a. Business Risk
b. Market Risk
c. Inflation Risk
d. Financial Risk
Question 2
Complete
Mark 1.00 out of 1.00
Flag question
Question text
This refers to a situation in which possible future events can have reasonable probabilities
assigned while uncertainty refers to situations in which there is no viable method of assigning
probabilities to future random events.
Select one:
a. Probability
b. Risk
c. Capital
d. Luck
Question 3
Complete
Flag question
Question text
Question 4
Complete
Flag question
Question text
These are goods which have not yet been committed to production in a manufacturing
business concern
Select one:
a. Goods in Transit
b. Work in Progress
c. Finished Goods
d. Raw materials
Question 5
Complete
Flag question
Question text
This is the amount of profit, or return, that an individual can expect based on an investment
made.
Select one:
c. Payback Period
d. Post-Payback Profitability
Question 6
Complete
Flag question
Question text
b. Post-Payback Profitability
c. Payback Period
Question 7
Complete
Flag question
Question text
This refers to the variability of returns due to fluctuations in the securities market which is more
particularly to equities market
Select one:
a. Business Risk
b. Inflation Risk
c. Market Risk
d. Financial Risk
Question 8
Complete
Flag question
Question text
This is the excess capital over the minimum amount of working capital that must be
maintained.
Select one:
Question 9
Complete
Question text
In this decision type of decision making, there are more than one proposal to be chosen
however the firm has limited funds so that’s why they must ration these project proposals.
Usually, they select a group of projects that yield the highest total return given such limited
funds.
Select one:
b. Capital Rationing
c. Mutually Exclusive
d. Accept-Reject
Question 10
Complete
Flag question
Question text
a. Goods in transit
b. Raw Materials
c. Finished Goods
d. Work in progress
Question 11
Complete
Flag question
Question text
a. To avoid under stock of inventory and to let the entity have over stocks
Question 12
Complete
Flag question
Question text
a. Property Maintenance
b. Working Capital
d. Capital Budgeting
Question 13
Complete
Flag question
Question text
This one measures and considers the cash inflows earned after pay-back period.
Select one:
c. Post-Payback Profitability
Question 14
Complete
Flag question
Question text
This includes materials which have been put into production process but have not yet been
completed
Select one:
a. Goods in Transit
b. Raw Materials
c. Finished Goods
d. Work in Progress
Question 15
Complete
Flag question
Question text
a. Profitability Ratio
c. Post-Payback Profitability
Question 16
Complete
Question text
This is the completed products and is already final output of the production process
Select one:
a. Work in progress
b. Finished Goods
c. Goods in transit
d. Raw materials
Question 17
Complete
Flag question
Question text
Question 18
Complete
Flag question
Question text
This is the discount rate that equates the present value of the expected net cash flows with the
initial cash outflow
Select one:
a. Post-Payback Profitability
c. Payback Period
Question 19
Complete
Flag question
Question text
FPL Company has a total Assets worth 400,000 of which 250,000 are non current the company
also has 200,000 total liabilities of which 150,000 are long term debts. What is the net working
capital?
Select one:
a. 300,000
b. 100,000
c. 150,000
d. 200,000
Question 20
Complete
Flag question
Question text
The difference between the present value of cash inflows and the present value of cash
outflows.
Select one:
a. Post-Payback Profitability
d. Payback Period
This is one of the fee based financial services which includes underwriting, consultancy and
other allied services to the business concern.
Select one:
a. mutual fund
b. venture capital
c. merchant banking
d. factoring
Feedback
Question 2
Correct
Flag question
Question text
Select one:
a. Foreign direct investment can provide the receiving firm with the investment, new
technologies, capital, processes, products, organizational and management technologies which
can help in economic development
b. Mutual funds are operated by money managers, who invest the fund's capital and attempt
to produce capital gains and income for the fund's investors
c. A Factoring portfolio is structured and maintained to match the investment objectives stated
in its prospectus.
Feedback
The correct answer is: A Factoring portfolio is structured and maintained to match the
investment objectives stated in its prospectus.
Question 3
Correct
Flag question
Question text
Select one:
a. Merchant banking is basically a service banking which provides non financial services such as
issue management, portfolio management, asset management, underwriting of new issues, to
act as registrar, share transfer agents, trustees, provide leasing and project consultation.
c. Lease may be defined as a contractual arrangement wherein the lesor makes periodic
d. In foreign direct investment, institutions invest in equities listed on the national stock
exchange
Feedback
The correct answer is: Lease may be defined as a contractual arrangement wherein the lesor
makes periodic payment to the lessee.
Question 4
Correct
Question text
This is the selling of accounts receivable at a discount to a third-party funding source to raise
capital.
Select one:
a. mutual fund
b. merchant banking
c. lease financing
d. factoring
Feedback
Question 5
Correct
Flag question
Question text
Select one:
a. Special Finance
b. Business Finance
c. Personal Finance
d. International Finance
Feedback
Question 6
Correct
Flag question
Question text
a. Merchant banking
b. Factoring
c. Mutual Funding
d. Online Bankng
Feedback
Question 7
Correct
Question text
It is contractual agreement between the owner of the assets and user of the assets for a
specific period by a periodical rent.
Select one:
a. mutual fund
b. venture capital
c. lease
d. factoring
Feedback
Question 8
Correct
Flag question
Question text
This is an investment made by a company from one country into a company from another
country.
Select one:
a. mutual fund
b. International Funding
c. Public-private Partnerships
Feedback
Question 9
Correct
Flag question
Question text
This is an investment vehicle for investors who pool their savings for investing in diversified
portfolio of securities with the aim of attractive yields and appreciation in their value.
Select one:
a. factoring
b. mutual fund
c. venture capital
d. merchant banking
Feedback
Question 10
Correct
Question text
This is the money provided by investors to startup firms and small businesses with perceived
long-term growth potential
Select one:
a. factoring
b. merchant banking
c. venture capital
d. mutual fund
Feedback