mcq finance
TRANSCRIPT
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8/3/2019 MCQ Finance
1/5
Which of the following represents a reasonably sensible but aggressivefinancing policy?
Which of the following would not normally be the responsibility of the
corporate treasurer?
Managing temporary surplus cash
Production costing and product pricing
Foreign exchange risk management
Risk management and investment
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8/3/2019 MCQ Finance
2/5
Which one of the following would not be a significant issue to consider
when deciding whether to borrow 'long or short'?
The uncertainty of getting future finance
The yield curve
The maturity structure of current debt
The availability of fixed asset collateral
Which of the following classes of risk cannot generally be avoided,
hedged and/or mitigated?
Financial risk
Interest rate risk
Currency risk
Business risk
Which one of the following describes the cash conversion cycle?
The stock conversion period plus debtor conversion period minus credit grantedby suppliers
The raw material stock period plus stock conversion period minus credit period
granted by suppliers
The debtor conversion period minus the credit period granted by suppliers
The credit period granted by suppliers plus raw material stock period plus work-in-progress period plus finished goods inventory period
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8/3/2019 MCQ Finance
3/5
Which diagram is correct?
Which of the following best describes overtrading?
When a business is short of fixed assets to sustain its level of trading
When a business expands at a rate faster than is sensible, given its stock ofmanagerial talent
When a firm chooses to switch production to an overseas base
When a business has insufficient finance for investment in working capital tosustain its level of trading
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8/3/2019 MCQ Finance
4/5
Which of the following is not an economic motive for holding cash?
Transaction motive
Speculative motive
Precautionary motive
Saving motive
Using Baumol's cash model, the optimum amount to transfer regularly
into cash for a firm which receives 6 per cent interest on invested
cash, is charged 50 every time money is withdrawn and has anannual need for cash of 150,000, is:
3,873
11,180
180
15,811
Which of the following tasks is a Treasurer most unlikely to carry out?
Advise on sources of finance and export finance
Supply product costing information
Deal with banking relationships and arrangements
Manage the company's currency and cash flows
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8/3/2019 MCQ Finance
5/5
Which of the following is false?
Finished goods = Average value of finished goods sold per day
inventory period Average cost of goods sold per day
Credit period = Average level of debtors
Purchases from debtors per day
Work-in-progress = Average value of work-in-progress
period Average cost of goods sold per day
Raw materials = Average value of raw materials stock
stock period Average purchase of raw materials per day