Reference no: EM132760557
Questions -
Q1. The most important goal of a company is to
A. reduce costs and expenses.
B. increase profit.
C. increase sales revenue.
D. increase the market price of the company's common stock.
Q2. Which of the followings statement is FALSE about the wealth maximization?
A. It takes into account the risk factor.
B. It takes into account the timing of return.
C. It considers short term objective of the firm.
D. It considers the time value of money.
Q3. Which of the following is an example of systematic risk?
A. The probability that a stock's return would drop due to an impending major lawsuit
B. Possibility of an increase in the tax rate
C. Possibility of a decline in the market share due to low quality products
D. Possibility of a decline in earnings due to a shortage of essential ingredients required in the manufacturing of one of the products
Q4. Which of the following is not considered as part of the financial manager's duties?
A. to prepare marketing plan of the company
B. to assess the need for additional investment
C. to determine the additional financing required
D. to transform the financial data into a report that can be used to monitor the firm's financial performance
Q5. Which of the followings are related to relaxed policy? i. More investment in low yielding assets. ii. Resulting in high returns. iii. Resulting in high levels of receivables. iv. Strict credit policy.
A. i and iii
B. i, ii, and iii
C. ii,iii and iv
D. All of the above.
Q6. Nuansa Bhd planning to acquire RM500,000 long term loan in order to finance its factories expansion which expected to last for 20 years. This situation illustrates the use of an approach in working capital management which is
A. conservative approach.
B. aggressive approach
C. moderate approach
D. hedging approach.
Q7. Maximile Corporation has an annual sale of RM800,000 and its COGS is 45% of sales. Its account payable is amount to RM48,000. Meanwhile the inventory is RM67,000 and account receivable is RM80,000. What is the cash conversion cycle? (Consider 360 working days)
A. 55 days
B. 79 days
C. 115 days
D. 81 days
Q8. Betamax Corporation has annual cash outlays of RM 10 million. Currently the cash conversion cycle for the company is 60 days. What is the minimum operating cash? (Consider 360 working days)
A. RM 27,777.78
B. RM 1,666.67
C. RM 1,666,666.67
D. RM 166,666.67
Q9. Which of the followings will shorten the cash cycles of the firms? i. Reducing Inventory Turnover. ii. Increase sales of inventory iii. Stretching the duration of payment for raw materials. iv. Improve account receivables collection.
A. i , iii and iv
B. i, ii, and iii
C. ii,iii and iv
D. None of the above.
Q10. Syarikat Munirah collects its accounts receivable in 50 days after credit sales are made and pays its accounts payable obligations in 28 days after credit purchases are placed. What is the firm's cash cycle if the firm's cost of goods sold averages rm200,000 and its closing inventory amounts to RM30,000.
A. 32 days
B. 54 days
C. 67 days
D. 76 days
Q11. Adam Bhd operates a successful business. The firm has an inventory conversion period of 60 days, a receivables conversion period of 35 days and payable deferral period of 30 days. The firm has a current annual outlay of RM1,000,000 in one-cycle investments and pays 10 % for the negotiated financing. Calculate the firm's annual savings if the operating cycle is reduced by 5 days. (Consider 360 working days)
A. RM 1,388.89
B. RM 2,777.28
C. RM 2,588.87
D. RM 1,666.66