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ACCA Financial Management FM Exam Practice Questions 2023 - Part 13

Mary Mary Smith
03 Mar 2023
1 min
0

1. In deciding the appropriate level of current assets for the firm, management is confronted with _____________.

A) A trade-off between profitability and risk.
B) A trade-off between liquidity and marketability.
C) A trade-off between equity and debt.
D) Trade-off between current assets and profitability.



2. The symptom of large inventory accumulation in anticipation of price rise in future will be indicated by ________.

A) Asset turnover ratio.
B) Working Capital turnover ratio.
C) Inventory turnover ratio.
D) All of the above.



3. Cost of capital is __________________.

A) Lesser than the cost of debt capital.
B) Equal to the last dividend paid to the equity shareholders.
C) Equal to the dividend expectations of equity shareholders for the coming year.
D) None of the above.



4. Financial leverage can be measured in ___________________.

A) Stock term.
B) Flow term.
C) Both (a) and (b).
D) None of these.



5. Mr. Anil purchased 100 stocks of futura informatics ltd, for Rs.21 on March 15, sold for Rs.35 on March 14 next year. In the company paid a dividend of Rs.2.50 per share, them Anil holding period return is______________.

A) 11.90%.
B) 45.40%.
C) 66.70%.
D) 78.60%.



1. Right Answer: A
Explanation:

2. Right Answer: C
Explanation:

3. Right Answer: D
Explanation:

4. Right Answer: C
Explanation:

5. Right Answer: D
Explanation:

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