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BBCF1013 - Principles of Finance - Quiz 1

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The primary purpose of business is to maximise...

a)

total asset

b)

Sales

c)

total profit

d)

shareholder's wealth

2.

Two basic of shares are

a)

Class A and Class B

b)

Convertible shares and preferred shares

c)

ordinary shares and preferred shares

3.

If you borrow RM1000 for one year and agree to repay the lender RM1200 at the end of one year, the interest cost of borrowings is

a)

8 percent per year

b)

20 percent per year

c)

Neither (a) or (b)

4.

A bond pays RM60 per year in interest and has a RM1000 par value. The market rate of interest is 8 percent. What is the coupon rate for this bond?

a)

2 percent

b)

6 percent

c)

8 percent

d)

12 percent

5.

The current assets of a firm do NOT include

a)

inventory

b)

account receivables

c)

property, plant and equipment

d)

cash in bank

6.

The sub categories of finance are

a)

public finance

b)

corporate finance

c)

personal finance

d)

all above

7.

As the interest rate goes up, the future value amount will

a)

go up

b)

go down

c)

remain the same

d)

fluctuate

8.

A firm has a total current asset of RM1.5 million, total current liability RM2 million and total assets of RM2.5 million. Calculate the current ratio.

a)

1.25

b)

0.75

c)

2.0

d)

1.0

9.

calculate the quick ratio if the total asset RM2million, inventory RM500,000, cash in bank RM200,000 and total liabilities RM1.2million

a)

0.75

b)

1.25

c)

1.35

d)

1.2

10.

Examples of preferences shares are

a)

cumulative preference shares

b)

non cumulative preference shares

c)

cumulative preference shares and non cumulative preference shares

d)

None