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WorksheetsFM Unit 1
Total questions: 21
Worksheet time: 11mins
1. The balance sheet statement is correct, if:
a. Assets + Liabilities = Stockholder’s Equity
b. Assets = Liabilities – Stockholder’s Equity
c. Assets = Liabilities + Stockholder’s Equity
d. Liabilities = Assets + Stockholder’s Equity
Financial management is mainly concerned with
All aspects of acquiring and utilizing financial resources for firms activities
Arrangement of funds
Efficient Management of every business
Profit maximisation
The primary goal of financial management is
to maximize the return
to minimize the risk
to maximize wealth of owners
to maximize profit
Capital budgeting related to
long term assets
short term assets
long term assets and short term assets
fixed assets
Dividend decision is concerned with
only distribution of dividend to shareholders
how much to be retained in business
how much profit earned is distributed to shareholders and how much to be retained in the business
none of the above
Financial management aims at
ensuring availability of enough funds
reducing the cost of funds procured
effective deployment of funds
all of the above
A long term investment decision is called
working capital decision
capital budgeting decision
financial decision
dividend decision
A decision to acquire a new and modern plant to upgrade an old one is a
financing decision
working capital decision
investment decision
none of the above
Finance functions are
Planning for funds
Raising of funds
Allocation of funds
All of the above
Which of the following is a liability?
Unit trust
Bank loan
Investment
Fixed deposit
EBIT stands for
Earnings before Interest and Tax
Earnings before Interest and Tariff
Earn before Interest and Tax
Earnings before Investment and Tax
BANK OVERDRAFT IS A FORM OF
SHORT TERM FUNDS
LONG TERM FUNDS
BOTH
NONE OF THE ABOVE
Time value of money indicates that
A unit of money obtained today is worth more than a unit of money obtained in future
A unit of money obtained today is worth less than a unit of money obtained in future
A unit of money obtained today is worth less than a unit of money obtained in future
None of the above
If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be:
10% per annum
10.10 per annum
10.25%per annum
10.38% per annum
The formula for compound value is :
FVn = PV (1+i)
FVn = PV/(1+i)
FVn = PV (1+i)n
FVn = (1+i)/PV
What is the future value of $1000 compounded annually at 8% for five years ?
$1,080
$1,400
$1,469
$1,800
Process of changing future value to the present value known as
Compound
Discount
Simple interest
Principal
Process of changing present value to the future value known as
Principal
Discount
Simple interest
Compound
