ACCA Financial Management FM Exam Practice Questions 2023 - Part 4
1. Land at prime locations, modern buildings, machinery in good condition, etc are accepted as __________.
A) Funds.
B) Security.
C) Liquid cash.
D) Debt.
2. The risk averse prefers debt instruments, while the risk seekers go for ________
A) Equity investments.
B) Preference investments.
C) Debt investments.
D) None of these.
3. A method of budgeting that estimates todays value of money to be received in the future; It is discounted due to the uncertainty of its true value in the future and for the cost of the capital is______________.
A) Cash inflow.
B) Cash outflow.
C) Discounted cash flow
D) Payback period
4. A main benefit to the corporate form of organization is __________.
A) Double taxation of corporate income.
B) Simplicity of decision making and low organizational complexity.
C) Limited liability for the corporate shareholders.
D) A major management role exists for the firm's owners
5. Rate of tax on capital gain and current income may influence form of _________.
A) Equity.
B) Preference.
C) Debt.
D) Capital.
A) Funds.
B) Security.
C) Liquid cash.
D) Debt.
2. The risk averse prefers debt instruments, while the risk seekers go for ________
A) Equity investments.
B) Preference investments.
C) Debt investments.
D) None of these.
3. A method of budgeting that estimates todays value of money to be received in the future; It is discounted due to the uncertainty of its true value in the future and for the cost of the capital is______________.
A) Cash inflow.
B) Cash outflow.
C) Discounted cash flow
D) Payback period
4. A main benefit to the corporate form of organization is __________.
A) Double taxation of corporate income.
B) Simplicity of decision making and low organizational complexity.
C) Limited liability for the corporate shareholders.
D) A major management role exists for the firm's owners
5. Rate of tax on capital gain and current income may influence form of _________.
A) Equity.
B) Preference.
C) Debt.
D) Capital.
1. Right Answer: B
Explanation:
2. Right Answer: A
Explanation:
3. Right Answer: C
Explanation:
4. Right Answer: C
Explanation:
5. Right Answer: D
Explanation:
Explanation:
2. Right Answer: A
Explanation:
3. Right Answer: C
Explanation:
4. Right Answer: C
Explanation:
5. Right Answer: D
Explanation:
Comments
0
CA Foundation Business Economics Questions 2023 - Part 32
03 Mar 2023
CA Foundation Business Economics Questions 2023 - Part 31
03 Mar 2023
CA Foundation Business Economics Questions 2023 - Part 30
03 Mar 2023
CA Foundation Business Economics Questions 2023 - Part 29
03 Mar 2023
CA Foundation Business Economics Questions 2023 - Part 28
03 Mar 2023
