BAFM6102 - Prelim Quiz 1 - Attempt Review

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Started on Monday, 26 September 2022, 8:33 PM

State Finished
Completed on Monday, 26 September 2022, 9:07 PM
Time taken 33 mins 24 secs
Marks 9.00/10.00
Grade 90.00 out of 100.00

Question 1

Correct

Mark 1.00 out of 1.00

Which is not included in the group

Select one:
a. Savings Promotion

b. Cash Management

c. Forecasting Financial Requirements

d. Interrelation with Other Departments

Question 2
Correct

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All else being equal, which of the following will increase a company’s current ratio?

Select one:
a. An increase in net fixed assets.

b. None of the statements can increase the current ratio

c. An increase in accounts payable.

d. An increase in accounts receivable.


Question 3

Correct

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This is concerned with the increase in revenue and decrease in expenses

Select one:
a. Revenue maximization

b. Expense minimization

c. Wealth maximization

d. Profit maximization

Question 4
Correct

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Lancaster Co. and York Co. have the same value of return on assets (ROA).  What will happen if Lancaster Co. adjusts its accounting records for
the disposal of unusable equipment at a loss?

Select one:
a. York Co's ROA will decrease.

b. Lancaster's ROA will increase.

c. Lancaster Co.'s profit margin will be lower than York Co.

d. Lancaster Co.'s ROA will be lower than York Co.

Question 5
Correct

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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. 7.1%

c. 33.4%

d. 3.4%
Question 6

Correct

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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:
a. Company A and Company B have the same amount of Liability.

b.  None of these

c. Company A and company B have equal amount of Assets 

d. Company A and Company B have equal amount of Equity.

Question 7
Correct

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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. Financial Concern

b. Managerial Accounting

c. Financial Management

d. Financial Accounting

Question 8
Correct

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Which of the following statements is true?

Select one:
a. A financial manager just delegates the responsibilities to his people and just wait for the results.

b. One of the benefits of being a financial manager is that you can get funds in the business entity without prior approval.

c. The finance manager must posses knowledge in the areas of accounting, finance, economics and management. 

d. All of the statements are correct.


Question 9

Incorrect

Mark 0.00 out of 1.00

What is the ultimate objective of Financial Management?

Select one:
a. Profit maximization 

b. Expense minimization

c. Revenue maximization

d. Wealth maximization

Question 10
Correct

Mark 1.00 out of 1.00

Which of the following can increase net profit margin?

Select one:
a. Sell merchandise with 20% discount

b. Buy merchandise

c. none of these

d. Sell merchandise with 20% mark-up from the original price

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