ACCA Financial Management FM Exam Practice Questions 2023 - Part 3

Mary Mary Smith
03 Mar 2023
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1 min read
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1. ______________ form of market efficiency states that current prices fully reflect all publicly available information

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



2. Which of the following is the first step in capital budgeting process?

A) Final approval.
B) Screening the proposal.
C) Implementing proposal.
D) Identification of investment proposal.



3. A project costs Rs, 1,00,000 annual cash flow of Rs. 20,000 for 8 years. Its payback period is ______________.

A) 1 year.
B) 2 years.
C) 3 years.
D) 5 years.



4. Which form of market efficiency states that current prices fully reflect the historical sequence of prices?

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



5. __________ is a payment of additional shares to shareholders in lieu of cash.

A) Stock split.
B) Stock dividend.
C) Extra dividend.
D) Regular dividend.



1. Right Answer: B
Explanation:

2. Right Answer: D
Explanation:

3. Right Answer: D
Explanation:

4. Right Answer: A
Explanation:

5. Right Answer: B
Explanation:

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