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ACCA Financial Management FM Exam Practice Questions 2023 - Part 2

Mary Smith

Thu, 16 Apr 2026

ACCA Financial Management FM Exam Practice Questions 2023 - Part 2

1. The __________ decision involves a determination of the total amount of assets needed, the composition of the assets, and whether any assets need to be reduced, eliminated, or replaced.

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



2. All constituencies with a stake in the fortunes of the company are known as __________.

A) Shareholders.
B) Stakeholders.
C) Creditors.
D) Customers.



3. Interest paid (earned) on both the original principal borrowed (lent) and previous interest earned is often referred to as __________.

A) Present value.
B) Simple interest
C) Future value.
D) Compound interest.



4. The weighted average of possible returns, with the weights being the probabilities of occurrence is referred to as __________.

A) A probability distribution.
B) The expected return.
C) The standard deviation.
D) Coefficient of variation.



5. ______________ form of market efficiency states that current prices fully reflect all publicly available information

A) Weak
B) Semi-strong.
C) Strong.
D) Flexible.



1. Right Answer: C
Explanation:

2. Right Answer: B
Explanation:

3. Right Answer: D
Explanation:

4. Right Answer: B
Explanation:

5. Right Answer: B
Explanation:

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