10/06/2025, 10:22 FIN2603 Exam QUESTIONS WITH COMPLETE SOLUTIONS (100 % CORRECT AND VERIFIED) ALREADY PASSED!! Flashcar…
FIN2603 Exam QUESTIONS WITH COMPLETE
SOLUTIONS (100 % CORRECT AND VERIFIED)
ALREADY PASSED!!
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Terms in this set (39)
a market place where companies and government
capital market can raise long term funds, a market where money is
lent for periods longer than 1 year
sound financial decision making requires that an
analysis of the total cost and the total benefits be
cost-benefit principle
conducted - as far as possible, the benefit should be
greater than the cost of any decision
an organisation that acts as a channel between savers
and borrowers of funds (Two main types of financial
institutions are banks that pay interest on
deposits from the interest earned on the loans, and
Financial institution
insurance companies and mutual
funds that collect funds by selling their policies or
shares to the public and provide returns
in the form of periodic benefits and profit payouts.)
uses financial statements to make capital-budgeting
decisions, capital structure decisions and working-
financial manager
capital decisions in order to create wealth for the
organisation's shareholders
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, 10/06/2025, 10:22 FIN2603 Exam QUESTIONS WITH COMPLETE SOLUTIONS (100 % CORRECT AND VERIFIED) ALREADY PASSED!! Flashcar…
the financial markets for short-term borrowing and
lending; provide short-term liquidity with securities
Money markets
such as treasury bills, commercial paper and bankers'
acceptances
the firm's ability to generate revenues that will exceed
total costs by using
the firm's assets for productive purposes; may be
achieved by marketing products or services to
Profitability
maintain a sufficient profit margin with the support of
promotions at competitive prices directed to
appropriate target markets through appropriate
distribution channels
the difference between the rate charged and the rate
paid (Financial institutions need to invest or lend out
Spread their available funds at a rate that exceeds the rate
they are
paying to their depositors
the extent to which a firm's assets exceed its liabilities;
differs from liquidity in that liquidity pertains to the
Solvency settlement of short-term liabilities, while solvency
pertains
to the excess of total assets over total liabilities
a concept used to evaluate any financial decision
involving differences in the timing of cash inflows and
outflows; a matter of interest that may be earned if
Time value of money money is available today and invested, or of
opportunity cost if an amount will only be received at
some future date - an amount of money today is
worth more than it will be at some point in the future
an account due for payment that, in contrast to a note
payable, does not involve the issuing of a formal
Accounts payable
written promise to the creditor (the two types of
liabilities are shown separately in the balance sheet)
https://quizlet.com/1053001085/fin2603-exam-questions-with-complete-solutions-100-correct-and-verified-already-passed-flash-cards/?new 2/7
FIN2603 Exam QUESTIONS WITH COMPLETE
SOLUTIONS (100 % CORRECT AND VERIFIED)
ALREADY PASSED!!
Save
Terms in this set (39)
a market place where companies and government
capital market can raise long term funds, a market where money is
lent for periods longer than 1 year
sound financial decision making requires that an
analysis of the total cost and the total benefits be
cost-benefit principle
conducted - as far as possible, the benefit should be
greater than the cost of any decision
an organisation that acts as a channel between savers
and borrowers of funds (Two main types of financial
institutions are banks that pay interest on
deposits from the interest earned on the loans, and
Financial institution
insurance companies and mutual
funds that collect funds by selling their policies or
shares to the public and provide returns
in the form of periodic benefits and profit payouts.)
uses financial statements to make capital-budgeting
decisions, capital structure decisions and working-
financial manager
capital decisions in order to create wealth for the
organisation's shareholders
https://quizlet.com/1053001085/fin2603-exam-questions-with-complete-solutions-100-correct-and-verified-already-passed-flash-cards/?new 1/7
, 10/06/2025, 10:22 FIN2603 Exam QUESTIONS WITH COMPLETE SOLUTIONS (100 % CORRECT AND VERIFIED) ALREADY PASSED!! Flashcar…
the financial markets for short-term borrowing and
lending; provide short-term liquidity with securities
Money markets
such as treasury bills, commercial paper and bankers'
acceptances
the firm's ability to generate revenues that will exceed
total costs by using
the firm's assets for productive purposes; may be
achieved by marketing products or services to
Profitability
maintain a sufficient profit margin with the support of
promotions at competitive prices directed to
appropriate target markets through appropriate
distribution channels
the difference between the rate charged and the rate
paid (Financial institutions need to invest or lend out
Spread their available funds at a rate that exceeds the rate
they are
paying to their depositors
the extent to which a firm's assets exceed its liabilities;
differs from liquidity in that liquidity pertains to the
Solvency settlement of short-term liabilities, while solvency
pertains
to the excess of total assets over total liabilities
a concept used to evaluate any financial decision
involving differences in the timing of cash inflows and
outflows; a matter of interest that may be earned if
Time value of money money is available today and invested, or of
opportunity cost if an amount will only be received at
some future date - an amount of money today is
worth more than it will be at some point in the future
an account due for payment that, in contrast to a note
payable, does not involve the issuing of a formal
Accounts payable
written promise to the creditor (the two types of
liabilities are shown separately in the balance sheet)
https://quizlet.com/1053001085/fin2603-exam-questions-with-complete-solutions-100-correct-and-verified-already-passed-flash-cards/?new 2/7
