WorksheetsTEST FIN2603 - SESSION 2 2023/2024
Total questions: 30
Worksheet time: 30mins
Financial management is a process to ensure that financial resources are obtained & used profitably and effectively to accomplish the firm’s objective.
TRUE
FALSE
The assets management decision explains how assets have been acquired and must be managed efficiently to help the firm maximize risk and return.
TRUE
FALSE
In Malaysia, the money market consists of a primary market and a secondary market.
TRUE
FALSE
The purpose of maintaining raw materials inventory is to incorporate between purchasing and production of the business.
TRUE
FALSE
The Inflation risk will increase the purchasing power of financial instruments.
TRUE
FALSE
The credit term of 5/15 net 35 indicates a 5% discount if payment is made within 15 days and the last discount to claim is on day 35.
TRUE
FALSE
Cash discount given to encourage customer to buy in bulk.
TRUE
FALSE
An aggressive working capital policy would have low liquidity, higher risk, and higher profitability potential.
TRUE
FALSE
Working capital is composed of the firm’s current assets and non-current assets.
TRUE
FALSE
Collateral is one of the criteria in the process of credit selection for customers who purchase in small monetary amounts.
TRUE
FALSE
Shareholders’ wealth maximization _____________.
consider risk and uncertainty.
consider getting return immediately.
ignore the time value of money.
achieve from company sales.
The __________ play an important role in facilitating the flow of funds between supply and demand of loan and investment.
financial manager
financial market
ignore the time value of money.
achieve from company sales.
IPO (Initial public offering) use for ________
businesses re-traded their shares.
businesses sell their shares.
process the offering shares of a private corporation to the public in primary market.
government to issue their short-term securities.
This type of Inventory management can be categories into highly to small value of investment and closely to less monitoring.
EOQ system
JIT system
ABC system
MRP system
Financial manager concerned with _________________.
managing of holding cash
making profit for the business
managing business risk
all the above
Which of these is a goal that a company should strive for?
minimize the sales revenues
maximize the current earnings
maximize the wealth of owners
maximize the employees’ benefits
Financial managers are typically assumed to be ____________.
risk takers
risk seekers
risk indifference
none of the above
Capital market instruments include ___________.
corporate bonds
commercial papers
banker’s acceptances
certificate of deposits
Which of the following is most likely to be a spontaneous source of financing?
Common stocks
commercial papers
Wages & salaries payable
Short-term notes payable
According to John Maynard Keynes,below are the reasons for holding cash except _________.
speculative motive
transaction motive
precautionary motive
Investment motive
(a) are the main recipients of financial statements of companies.
Money market securities are (a) , that is, they can easily be converted into cash without loss of value.
(a) are responsible to the owners and shareholders.
(a) is a distributed and decentralized digital ledger technology that records transactions and data in a secure, transparent, and tamper-resistant manner.
(a) often indicated as net current assets, is commonly define current assets minus current liabilities.
Maximizing shareholders’ wealth means maximizing the (a) of the existing shareholders’ common stock.
(a) is defined as the possibility that something unpleasant would occur.
(a) approach, where assets are matched with liabilities.
Current liabilities can increase the risk of (a) of the firm.
Most companies will offer (a) to its customers as this provides flexibility to repay debt within a certain time.
