Question 21 (2 points) Identify the TRUE statement:

Question 21 options: a. Operating Cash Flow = EBIT + Depreciation - Taxes b. Net Capital Spending = Ending Net Fixed Assets - Depreciation c. Change in Net Working Capital (NWC) = Current Assets - Current Liabilities d. Cash Flow from Assets = Operating Cash Flow + Net Capital Spending

Question 22 (2 points) The following will result in a future value greater than RM100: Question 22 options: a. PV = RM50, r = an annual interest rate of 10%, and n = 8 years. b. PV = RM75, r = an annual interest rate of 12%, and n = 3 years. c. PV = RM90, r = an annual interest rate of 14%, and n = 1 year. d. All of the future values are greater than RM100.

Question 23 (2 points) The following are all advantages with the company form when doing business, EXCEPT FOR:

Question 23 options: a. Professional management b. Greater government supervision c. Limited liability d. Continuity of existence

Question 24 (2 points) __________ is concerned with the branch of economics relating the behavior of principals and their agents. Question 24 options: a. Financial management b. Profit maximization c. Agency problem d. Corporate social responsibility

Question 25 (2 points) The purpose of studying financial statements is ________. Question 25 options: a. to mechanically build portfolio analysis b. to understand those portions of the statements that have relevance for financial decision making c. to primarily investigate all portions of the statements that have relevance for dividend policy d. to mechanically learn how to read and understand footnotes

Question 26 (2 points) Ewart is about to renew the mortgage on his home and understands that it is much cheaper to make his mortgage payments as frequently as possible. He is considering four possible interest rate offers. Decide which would be the most beneficial offer to a borrower like Ewart. Question 26 options: a. 7.50% compounded daily b. 7.50% compounded semi-annually c. 7.50% compounded annually d. 7.50% compounded monthly

Question 27 (2 points) If you need exactly RM 8,000 saved 10 years from now, find how much must you deposit today in an account that pays 4% interest, compounded annually. Question 27 options: a. RM 4,504.68 b. RM 4,405.68 c. RM 5,404.51 d. RM 5,044.68

Question 28 (2 points) The following are the advantages of the accounting rate of return (ARR) method of investment appraisal EXCEPT FOR: Question 28 options: a. It takes into account the time value of money by allowing for depreciation in the equation. b. The ratio takes account of the overall profit that is generated by the investment. c. There is comparability between the ARR and the ROCE ratio used in financial accounting. d. It is easy to understand.

Question 29 (2 points) Fixed assets that provide the basis for a firm's earning and value are often called ________. Question 29 options: a. tangible assets b. noncurrent assets c. earning assets d. book assets Question 30 (2 points) Business owners can limit their personal liability by forming a Question 30 options: a. Partnership b. Sole proprietorship c. Partnership with only limited partners. d. Companies