Multiple choice question: please answer all thank you

Question 18

The more the financial leverage a firm has

a. none of these

b. the lower the risk and possible return

c. the lower the return on owners equity

d. the greater the probability of shareholders financing assets without losing control of firm

Profit made is also referred to as the bottom line

a.

False

b.

True

Question 19

Financial managers and accountants perform the same jobs, with different job titles

a.

True

b.

False

Question 20

The cost-benefit principle means that

a.

the greater the costs, the greater the benefits

b.

none of these

c.

clarity about the objective to be attained is vital

d.

decisions based on cost only will yield the best benefits

e.

costs should outweigh benefits

Question 21

The business model from the financial side consider all, except:

a.

How customers will be managed

b.

Firm revenues

c.

Firm cost structure

d.

Firm return of investment

Question 22

The primary sources for financial analysis:

a.

Cashflow statement

b.

Auditors report

c.

Statement of financial performance

d.

Directors report

Question 23

Cash flows from operating activities includes

a.

bad debts

b.

none of these

c.

cash from customers or cash paid to suppliers and employees

d.

transactions from investments

Question 24

The following about the price earnings ratio (P/E) is/are correct except:

a.

It is computed by dividing the market price of the share by its earnings per share.

b.

PE ratio is used to discuss the investment possibility of a given enterprise

c.

If a companys P/E ratio drops steadily this indicates that investors are confident of the firms growth potential.

d.

The greater the P/E ratio, the better the perception of investors regarding the future growth of the firm.

Question 25

..statement shows how the business firm generates and uses cash and cash equivalentsQuestion 26

a.

Statement of cash flows

b.

None of these

c.

Statement of profit and loss

d.

Statement of financial position

Question 27

The financial goal of the firm is to maximise shareholders wealth, and it is accomplished through

a.

Increasing the value of the firm and investing in assets

b.

Increasing assets and decreasing liabilities

c.

Increasing the value of the firm and decreasing liabilities

d.

Increasing the value of the firm and investing in short term assets