FIN2603 EXAM PACK 100+
QUSTIONS AND CORRECT
ANSWERS 2023 .
,Question 2 of 21
1.0 Points
Which stakeholders have the first claim on assets when a organisation enters bankruptcy?
A. Creditors
B. Top management
C. Debtors
D. Shareholders
Answer Key:A
Question 3 of 21
1.0 Points
The long-term financial goal of the firm may be achieved by ...
A. maximising revenue and minimising expenses.
B. minimising the cost of capital and maximising the internal rate of return (IRR).
C. maximising the assets relative to the liabilities.
,
D. accelerating cash inflows.
Answer Key:B
Question 4 of 21
1.0 Points
What is the main function of a financial manager?
A. To prevent bad debts.
B. To ensure liquidity and solvency.
C. To increase the value of ordinary shares.
D. To earn returns greater than those of the competitors.
Answer Key:C
Part 3 of 5 - Section 2 10.0 Points
Question 5 of 21
1.0 Points
The statement of comprehensive income measures ... and it is also known as ...
A. revenue and gross profit; earnings-after-tax trial balance.
,
B. gross profit, earnings before income and tax (EBIT) and net profit;Statement of
financial performance.
C. cost of goods sold and operating expenses; balance sheet.
D. sales, EBIT and earnings-after-tax; cash flow statement.
Answer Key:B
Question 6 of 21
1.0 Points
B and C Limited extend credit terms of 43 days to its customers. Its credit collection would
likely be considered poor if its average collection period was ...
A. 30 days.
B. 36 days.
C. 43 days.
D. 45 days.
Answer Key:D
QUSTIONS AND CORRECT
ANSWERS 2023 .
,Question 2 of 21
1.0 Points
Which stakeholders have the first claim on assets when a organisation enters bankruptcy?
A. Creditors
B. Top management
C. Debtors
D. Shareholders
Answer Key:A
Question 3 of 21
1.0 Points
The long-term financial goal of the firm may be achieved by ...
A. maximising revenue and minimising expenses.
B. minimising the cost of capital and maximising the internal rate of return (IRR).
C. maximising the assets relative to the liabilities.
,
D. accelerating cash inflows.
Answer Key:B
Question 4 of 21
1.0 Points
What is the main function of a financial manager?
A. To prevent bad debts.
B. To ensure liquidity and solvency.
C. To increase the value of ordinary shares.
D. To earn returns greater than those of the competitors.
Answer Key:C
Part 3 of 5 - Section 2 10.0 Points
Question 5 of 21
1.0 Points
The statement of comprehensive income measures ... and it is also known as ...
A. revenue and gross profit; earnings-after-tax trial balance.
,
B. gross profit, earnings before income and tax (EBIT) and net profit;Statement of
financial performance.
C. cost of goods sold and operating expenses; balance sheet.
D. sales, EBIT and earnings-after-tax; cash flow statement.
Answer Key:B
Question 6 of 21
1.0 Points
B and C Limited extend credit terms of 43 days to its customers. Its credit collection would
likely be considered poor if its average collection period was ...
A. 30 days.
B. 36 days.
C. 43 days.
D. 45 days.
Answer Key:D
