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ACCA Financial Management FM Exam Practice Questions 2023 - Part 14

Mary Smith

Sun, 07 Jun 2026

ACCA Financial Management FM Exam Practice Questions 2023 - Part 14

1. _________ is concerned with the maximization of a firm's earnings after taxes

A) Shareholder wealth maximization.
B) Profit maximization.
C) Stakeholder maximization.
D) EPS maximization.



2. The __________ decision involves determining the appropriate make-up of the right-hand side of the balance sheet.

A) Asset management.
B) Financing
C) Investment.
D) Capital budgeting.



3. The __________ decision involves efficiently managing the assets on the balance sheet on a day-to-day basis, especially current assets.

A) Asset management.
B) Financing.
C) Investment.
D) Accounting.



4. Corporate governance success includes three key groups. _____________ represents these three groups.

A) Suppliers, managers, and customers.
B) Board of directors, executive officers, and common shareholders.
C) Suppliers, employees, and customers.
D) Common shareholders, managers, and employees.



5. Which one of the following is / are the relevance theory?

A) Gorden.
B) Walter.
C) Residual.
D) Both (a) and (b).



1. Right Answer: B
Explanation:

2. Right Answer: B
Explanation:

3. Right Answer: A
Explanation:

4. Right Answer: B
Explanation:

5. Right Answer: A
Explanation:

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