ACCA Financial Management FM Exam Practice Questions 2023 - Part 23
1. Most retail stores are mainly concerned with:
A) their buyers' forecasts for the coming season
B) matching sales and inventory levels
C) decreasing inventory turnover
D) their investment in capital assets
2. The liquidity premium theory suggests that long-term interest rates are higher than short-term interest rates because:
A) investors generally prefer to invest short periods of time
B) government policy maintains this relationship
C) there is greater risk in long-term bonds
D) exchange rate fluctuations establish this relationship
3. Using a lockbox system to improve collections:
A) is more expensive than the use of collection centers
B) utilizes local banks to clear local payments made to the collection center
C) provides more float than collection centers
D) results in checks being forward to a P.O. box and clearing through local banks
4. All of the following are factors influencing the choice of marketable securities except:
A) yield
B) maturity
C) marketability
D) maximum investment allowed
5. A cash discount may best be defined as:
A) a reduction in price if payment is made within the specified time period
B) a discount offered to critical suppliers
C) a discount applied to volume sales
D) a discount or the repayment of the firm's debt
A) their buyers' forecasts for the coming season
B) matching sales and inventory levels
C) decreasing inventory turnover
D) their investment in capital assets
2. The liquidity premium theory suggests that long-term interest rates are higher than short-term interest rates because:
A) investors generally prefer to invest short periods of time
B) government policy maintains this relationship
C) there is greater risk in long-term bonds
D) exchange rate fluctuations establish this relationship
3. Using a lockbox system to improve collections:
A) is more expensive than the use of collection centers
B) utilizes local banks to clear local payments made to the collection center
C) provides more float than collection centers
D) results in checks being forward to a P.O. box and clearing through local banks
4. All of the following are factors influencing the choice of marketable securities except:
A) yield
B) maturity
C) marketability
D) maximum investment allowed
5. A cash discount may best be defined as:
A) a reduction in price if payment is made within the specified time period
B) a discount offered to critical suppliers
C) a discount applied to volume sales
D) a discount or the repayment of the firm's debt
1. Right Answer: B
Explanation:
2. Right Answer: C
Explanation:
3. Right Answer: D
Explanation:
4. Right Answer: D
Explanation:
5. Right Answer: A
Explanation:
Explanation:
2. Right Answer: C
Explanation:
3. Right Answer: D
Explanation:
4. Right Answer: D
Explanation:
5. Right Answer: A
Explanation:
Comments
0
CA Foundation Business Economics Questions 2023 - Part 32
03 Mar 2023
CA Foundation Business Economics Questions 2023 - Part 31
03 Mar 2023
CA Foundation Business Economics Questions 2023 - Part 30
03 Mar 2023
CA Foundation Business Economics Questions 2023 - Part 29
03 Mar 2023
CA Foundation Business Economics Questions 2023 - Part 28
03 Mar 2023
