BWFF2033 FINANCIAL
MANAGEMENT MATRIC NO.:
1. In a typical corporate organizational structure .
A. the treasurer reports to the president
B. the controller reports to the chief financial officer
C. the chief executive officer reports to the president
D. the vice president of finance reports to the chair of the board
2. Which one of the following questions involves a capital budgeting decision?
A. How much inventory should the firm keep on hand?
B. What credit terms can the firm offer to its customers?
C. Should the firm purchase a new machine for the production line?
D. Should the firm borrow money or obtain equity funds to acquire new
equipment?
3. Determining the number of shares to issue is an example of decision.
A. capital rationing
B. capital structure
C. capital budgeting
D. net working capital
4. A firm owned by two or more people who each have unlimited liability for all of the
firm's debts is called a .
A. company
B. sole proprietorship
C. general partnership
D. limited partnership
5. Which one of the following is a DISADVANTAGE of the corporate form of
business?
A. The company may have unlimited life.
B. Shareholders may experience limited liability.
C. Distributed profits may experience double taxation.
D. Raising capital may be more difficult than for other forms of business.
1
, BWFF2033 FINANCIAL
MANAGEMENT MATRIC NO.:
6. Financial managers should primarily focus on interests.
A. their own
B. their shareholders’
C. their immediate supervisor’s
D. the vice president of finance’s
7. To perform common-size analysis of financial statements, the items in the income
statement must be expressed as percentages of , and the items in the
balance sheet must be expressed as percentages of .
A. sales; sales
B. sales; total assets
C. net income; total assets
D. total assets; total assets
8. Lipra Supply has total equity of RM1,830, fixed assets of RM2,170, long-term debt of
RM740, and short-term debt of RM430. What is the amount of Lipra’s current assets?
A. RM340
B. RM400
C. RM660
D. RM830
9. Which one of the followings is a current liability?
.
A. Income taxes which were just paid today.
B. A note payable to a lender in nine months.
C. A loan due to a bank 14 months from today.
D. An invoice due to a supplier 16 months from today.
10. Which of the following is the CORRECT formula for net income?
A. EBIT − Taxes
B. Pretax income − Interest expense
C. Operating income × (1 − Marginal tax rate)
D. Dividends + Addition to retained earnings
2
MANAGEMENT MATRIC NO.:
1. In a typical corporate organizational structure .
A. the treasurer reports to the president
B. the controller reports to the chief financial officer
C. the chief executive officer reports to the president
D. the vice president of finance reports to the chair of the board
2. Which one of the following questions involves a capital budgeting decision?
A. How much inventory should the firm keep on hand?
B. What credit terms can the firm offer to its customers?
C. Should the firm purchase a new machine for the production line?
D. Should the firm borrow money or obtain equity funds to acquire new
equipment?
3. Determining the number of shares to issue is an example of decision.
A. capital rationing
B. capital structure
C. capital budgeting
D. net working capital
4. A firm owned by two or more people who each have unlimited liability for all of the
firm's debts is called a .
A. company
B. sole proprietorship
C. general partnership
D. limited partnership
5. Which one of the following is a DISADVANTAGE of the corporate form of
business?
A. The company may have unlimited life.
B. Shareholders may experience limited liability.
C. Distributed profits may experience double taxation.
D. Raising capital may be more difficult than for other forms of business.
1
, BWFF2033 FINANCIAL
MANAGEMENT MATRIC NO.:
6. Financial managers should primarily focus on interests.
A. their own
B. their shareholders’
C. their immediate supervisor’s
D. the vice president of finance’s
7. To perform common-size analysis of financial statements, the items in the income
statement must be expressed as percentages of , and the items in the
balance sheet must be expressed as percentages of .
A. sales; sales
B. sales; total assets
C. net income; total assets
D. total assets; total assets
8. Lipra Supply has total equity of RM1,830, fixed assets of RM2,170, long-term debt of
RM740, and short-term debt of RM430. What is the amount of Lipra’s current assets?
A. RM340
B. RM400
C. RM660
D. RM830
9. Which one of the followings is a current liability?
.
A. Income taxes which were just paid today.
B. A note payable to a lender in nine months.
C. A loan due to a bank 14 months from today.
D. An invoice due to a supplier 16 months from today.
10. Which of the following is the CORRECT formula for net income?
A. EBIT − Taxes
B. Pretax income − Interest expense
C. Operating income × (1 − Marginal tax rate)
D. Dividends + Addition to retained earnings
2
