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WorksheetsFinancial Management
Total questions: 40
Worksheet time: 40mins
Pool of institutions and procedures that facilitate transactions in all types of financial claims refer to
Banking institutions
Financial market
Money market
Ministry of finance
These are advantages for running a business in the form of sole proprietorship, except
flexibility for owner
responsible to all activities
bounded by partnership
owner retains all profits
Based on financial management, firm usually tend to attain specific goal which is
investment maximization
operation maximization
wealth maximization
capital maximization
These are all functions of financial manager in an organization:
Involve the analysis of cause and responsible to control cash flow
Determine how much money to be allocated for assets
Involve in manufacturing process and strategies
Determine the sources of fund for firm to maintain operation
The form of business which has unlimited number of shareholders and large scale economic operations refers to:
Sole proprietorship
Corporation
Partnership
Small enterprise
Below are examples of non-profit organization, except
Malaysian Nature Society
MAKNA
Permodalan Nasional Berhad
Mercy Malaysia
One of the thumb rules for doing an investment is
High risk, low profit
High return, high profit
High profit, low risk
High risk, high return
Which of the followings are key financial statements in an organization
Statement of cash flows
Bank statement
Balance sheet
Income statement
Supplier's quotation
________ shows the financial position of a company at point of assets and liabilities is measured
Income statement
Pro forma statement
Balance sheet
Cash flow statement
Family Mart collect RM2,000 from SS Company who is the customer. The statement shows that Family Mart utilizes
sources of fund
uses of fund
AA Enterprise borrow long term by selling bonds RM80,000. This statement shows that AA Enterprise utilizes
Sources of fund
Uses of fund
Brandy Sdn Bhd purchased new fixed assets worth RM10,000. This statement shows that Brandy Sdn Bhd utilizes
Sources of fund
Uses of fund
Three components of the statement of cash flows are:
Cash flow from financing activities
Cash flow from administrative activities
Cash flow from operating activities
Cash flow from investing activities
Cash flow from capital activities
Followings are the example of fixed assets, except
machinery
building
inventories
land
_______ are relatively liquid, and are expected to be converted to cash within a year.
Current liabilities
Non-current liabilities
Current assets
Non-current assets
To identify the uses of funds in a firm over a time is by
increasing in assets.
increasing in liabilities.
decreasing in assets.
selling the stocks.
_________ used to compare different firms at the same point in time.
Industry comparative analysis
Cross-sectional analysis
Trend analysis
Combined analysis
Leverage is the extend which a firm is using debt financing and the degree of safety that the firm provides to the creditors. _______ ratio is one of the ratios to evaluate leverage.
Average collection period
Net working capital
Inventory turnover
Time interest earned
The best sentence to describe activity ratio.
The extend to which a firm is using debt financing and the degree of safety that the firm provides to the creditors.
The firm's ability to meet its current obligations as they come due.
The effectiveness of a firm in managing its assets that related to the level of operations
The combined effects of liquidity, asset management and debt of the firm.
The followings are the statements that best described for cash budget, except
The cash forecast of the firm by planning inflows and outflows.
Depreciation is excluded from the statement.
Used to estimate short term cash requirements.
Positive cashflow indicate the firm has surplus cash.
Which of the following is component in cash receipt.
purchasing materials
Wages
dividend received
acquire fixed asset
The following items are spontaneous when the firm is operating below its capacity, except
Account receivable
Account payable
Fixed assets
Retained earnings
Items that remain constant or unchanged when the firm operating at full capacity are:
Retained earnings
Long term debt
Cash
Preferred stock
Common stock
All assets purchased by the firm can be financed in three ways, which are short-term financing, long-term financing and ________.
immediate financing.
spontaneous financing.
impulsive financing.
temporary financing.
All fixed assets and part of the permanent will be financed by long-term financing. The statement is best described for ______.
aggressive approach.
hedging approach.
preserve approach.
conservative approach.
The firm has amount of cash reserved for the unexpected event which unlikely to be happened is _______ motive for holding cash.
transaction
speculative
precautionary
leisure
Cash turnover is an average time required to acquire inventory, sell it and collect money from it.
True
False
Why do the firm need to do the basic cash management?
The firm want to has low average payment period
The firm want to has low average collection period
The firm want to has many customer
The firm want to connect with many suppliers
Inventory can be divided into 3 categories:
work-in process
raw materials
reserved stock
finished goods
The variable costs per unit of holding an item of inventory for a specific period of time includes:
storage cost
ordering cost
insurance cost
property taxes
depreciation
_______ is extra inventory to prevent stockout in the firm's warehouse.
Safety stock
Reorder point
Lead time
Total inventory cost
Non-spontaneous financing can be divided into:
security loan and permanent loan
temporary loan and permanent loan
secured loan and unsecured loan
long-term loan and immediate loan
_______ is the requirement amount from the bank to the borrower with specific percentage of the outstanding loan balance on deposit in the borrower's account.
floatation cost
commitment fees
compensating balance
unused portion
Short term unsecured promissory notes that is generally sold by large corporation on discount basis with the maturity period from 1 to 270 days. The statement is best described for _______.
bonds.
commercial paper.
preferred shares,
common stocks.
_____ market is where institutions can buy and sell instruments to raise the fund with maturity more than a year.
Capital
Financial
Investment
Money
The promissory notes that commonly has long-term and viewed as debt instrument which par value have been set at RM1,000.
Preferred stock
Common stock
Bond
Derivative
The followings are the characteristics of common stock, except
voting rights
preemptive right
limited liability
call feature
The best decision for the firm in capital budgeting is ______
low net present value
low payback period
high payback period
low profitability index
Company prefers to go for debt financing instead of equity financing because of
A company does not have to share ownership of the company
Interest paid is exempted from tax, while dividends paid on equity are not
A company can offer voting right to the investors
Interest paid to the bondholders are tax deductible and therefore is a cheaper source of capital
Common stockholders received fixed dividends, and have higher priority than priority than preferred stockholders in event of liquidation of the firm.
True
False
