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Lectures On Corporate Finance – CMFAS Module 4a
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Question 1 of 30
1. Question
How are capital contributions with a mortgage attached recorded in a partnership for financial statement purposes?
Correct
Incorrect
When a mortgage attached recorded in a partnership for financial statement purposes, calculates the capital balance when property contributed has a mortgage result in the FV of the Asset being netted against the Liability.
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Question 2 of 30
2. Question
In which of the situations does the interest expense start accruing on a bond?
Correct
Incorrect
The interest expense starts accruing on a bond only when the bonds are issued.
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Question 3 of 30
3. Question
What do you consider to be true from below when it comes to the stated rate for a bond?
Correct
Incorrect
The state of a bond is the rate on the face of that particular bond.
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Question 4 of 30
4. Question
What are some of the alternate names for corporate finance?
I. Individual management.
II. Finance management
III. Business finance.
IV. Managerial finance.Correct
Incorrect
Corporate finance can be also called as finance management, business finance or even managerial finance.
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Question 5 of 30
5. Question
How would you define the capital budgeting analysis in financial terms?
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Through the capital budgeting analysis, we simply understand the main process of deciding what type of assets to purchase.
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Question 6 of 30
6. Question
Which from the following two short-term and long-term assets deal with financing decisions?
Correct
Incorrect
Only investing can be considered a good long-term asset being a financing decision.
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Question 7 of 30
7. Question
How would you define the term/concept of investment in financial terms?
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Incorrect
In finance, there are three main important areas. Investment is one of them which involves choosing which assets to invest in.
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Question 8 of 30
8. Question
Which of the variant from below is true as a definition when you think about an asset manager?
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Incorrect
An asset manager is that particular person that usually makes investments in funds, with the purpose of earning positive returns.
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Question 9 of 30
9. Question
Which of the following statements can be considered to be a semi-strong market efficiency?
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Incorrect
Semi-Strong market efficiency happens when prices reflect not just past prices but all other public information.
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Question 10 of 30
10. Question
Which of the following from below best describe what locational arbitrage refers to?
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Incorrect
When the price is placed as cheap and then immediately selling the currency at some other location where it is priced higher, the process is called location arbitrage.
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Question 11 of 30
11. Question
Which sentence do you consider to be true when you think about the strong-market efficiency?
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Incorrect
By carefully analysing the company and the economy through prices which reflect all the information, this process is called strong-market efficiency.
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Question 12 of 30
12. Question
In general, what does financial forecasting means and what is the purpose of it?
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The process of financial forecasting happens when the future progress of the firm forecasting the future performance of it.
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Question 13 of 30
13. Question
How could finance, in general as a concept be defined?
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Incorrect
The terms savings are allocated between lenders and borrowers, which is the main area of study in finance.
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Question 14 of 30
14. Question
In which particular situation do financial contracts or securities are happening?
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Incorrect
Both financial contracts or securities are happening when funds are transferred from issuer to the buyer.
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Question 15 of 30
15. Question
What happens to a household with no financial assets and no security often has what?
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Incorrect
When a household doesn’t have any financial security, the financial problems start. That is why because real assets cannot be easily used to pay off or service debt.
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Question 16 of 30
16. Question
In finance, who can be called as financial intermediaries and what is their purpose?
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The financial intermediaries have an important scope in finance. They help to transform the nature of the securities they issue but also invest.
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Question 17 of 30
17. Question
How can an indirect claim be defined, considering the variants presented below?
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Incorrect
The correct indirect claim is when someone put its money in the bank, and for the money taken, it pays interest of 10%, while the bank takes 5% and the individual receives 5%.
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Question 18 of 30
18. Question
What are some of the major areas in particular interest to a country when you think about finance?
I. Corporate finance.
II. Government finance.
III. Personal finance.
IV. International finance.Correct
Incorrect
The common aspect of most of the countries regarding the financing domain is the corporate, government, international and personal finance.
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Question 19 of 30
19. Question
When it comes to financing forecasting there are some statements required which are those?
Correct
Incorrect
Financing forecasting the statement requires will increase with the change in sales by analyzing each line of the income statement to predict.
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Question 20 of 30
20. Question
What is the difference between discretionary accounts or non-spontaneous accounts?
Correct
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The difference between discretionary accounts or non-spontaneous accounts is that for the last ones it does not increase automatically with sales.
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Question 21 of 30
21. Question
What is, in general, the process of selling a stock short, what do you have to do?
Correct
Incorrect
In general, the process of selling a stock short is that the shares are usually borrowed and sold at a better price.
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Question 22 of 30
22. Question
Which is one of the main goal of any financial manager from any company?
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Any financial manager has several duties within a company, however, its main goal is always to maximize the market value of a corporation by the maxing stock price.
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Question 23 of 30
23. Question
In banking and finance the process of amortization of a loan happens often, how would you define the concept?
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The process of amortization of a loan happens when only partially some of the payment goes to interest while the rest of it reduces the initial loan.
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Question 24 of 30
24. Question
How would you define the process of finance standard costing?
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Incorrect
The system that enables deviations from budget to be analyzed in particular detail, in finance is called the process of finance standard costing.
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Question 25 of 30
25. Question
Name which types of cost standards are true from the variants presented below?
I. Common standards.
II. Ideal standards.
III. Currently attainable standards.
IV. Basic cost standards.Correct
Incorrect
There are different terminologies regarding the cost standards in finance, from which some that could be mentioned are: the ideal, the currently attained and the basic cost standards.
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Question 26 of 30
26. Question
How could the current attainable standards be defined considering the below?
Correct
Incorrect
Attainable standards are those costs that should be incurred under efficient operating conditions, which might be hard to achieve but not impossible.
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Question 27 of 30
27. Question
How could the business discipline of financial accounting be defined considering the below?
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Incorrect
Through finance accounting, we understand a technique of identity, measure, record and communicate some sort of financing information to people who are interested in receiving it.
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Question 28 of 30
28. Question
What does the cash flow from financing activities (CFF) statements show?
Correct
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Thorough cash flow is understood the profit and loss of company performance. This way someone can check the amount of cash and get an idea about a company’s liquidity.
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Question 29 of 30
29. Question
When analysing a financial statements what are they intended to show about a company?
Correct
Incorrect
A financial system can be read by anyone who wishes to review them. These show the economic situation of a particular organisation.
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Question 30 of 30
30. Question
Why are bond markets so important in finance, what is the main reason behind this?
I. The bond market is one of the most important sources of financing in the nation.
II. In the bond market, firms raise debt financing directly from investors.
III. There are billions of dollars in the bond market that we need to understand so that we may comprehend its role in corporate finance.
IV. For large corporations, the bond market is one of the primary sources of external financing.Correct
Incorrect
Bond markets are very important in finance and the reasons behind these are various, however, one of the most important ones might be that these markets are an important source of financing in the nations.