Professional Documents
Culture Documents
Environment
Topics List
1.
Financial Management
Exam Question
Reference
a. Financial management decisions investment, financing and Jun 10
Q4c
dividend decisions
b. Three decisions relationship under M&M view
Jun 10
Q4c
2.
3.
Financial Objectives
a. Primary objective maximize shareholders wealth
Dec 11
Jun 13
Dec 13
Q4d
Q1c
Q1c
Dec 11
Jun 13
Q4d
Q1c
Dec 11
Dec 11
Q4d
Q4d
Dec 08
Jun 12
Dec 08
Jun 12
Q1e
Q3a
Q1e
Q3a
d. Non-financial indicators
e. External factors
4.
Stakeholders
a. Categories of stakeholder group
b. Stakeholders areas of interest
5.
6.
Agency problem
a. Meaning
b. How to reduce the agency problem?
c. Less conflict in SMEs
7.
Macroeconomic Targets
1
a.
b.
c.
d.
e.
f.
8.
Economic growth
High employment
Low inflation
Balance of payments stability/equilibrium
Price stability
Types of policy
Financial Institutions
a. Types of financial institutions
b. Functions of financial intermediaries
9.
Financial Markets
a. Money markets
b. Capital markets
c. Euromarkets
10.
Dec 09
Q4a
Which of the following is NOT one of the three main types of decision facing the
financing manager in a company?
A
B
C
D
2.
3.
Dividend decision
Investment decision
Economic decision
Financing decision
Which of the following are the 3 key areas covered by financial management decisions?
1
2
3
4
Investment
Cash flow
Finance
Dividend
A
B
C
D
1, 2 and 3
2, 3 and 4
1, 3 and 4
1, 2 and 4
A
B
C
D
1 and 2 only
1 and 3 only
2 and 3 only
1, 2 and 3
(ACCA F9 Financial Management Pilot Paper 2014)
4.
A
B
C
D
5.
Financial management is concerned with the long-term raising of finance and the
allocation and control of resources.
Management accounting is concerned with providing information for the more
day-to-day functions of control and decision making
Financial accounting is concerned with providing information about the historical
results of past plans and decisions
1 and 2 only
1 and 3 only
2 and 3 only
1, 2 and 3
6.
7.
A
B
C
D
9.
10.
A
B
C
D
1 and 4 only
3 and 5 only
2, 3 and 5 only
1, 2, 3 and 4 only
11.
13.
14.
Using a cheaper source of goods and thereby decreasing the quality of non-forprofit organization services
Searching for easy to diversify the finances of the not-for-profit organization
Decreasing waste in the provision of a service by the not-for-profit organization
Focusing on meeting the financial objectives of the not-for-profit organization
15.
In the context of managing performance in 'not for profit' organisations, which of the
following definitions is incorrect?
A
B
C
D
16.
A school decides to have larger classes and examination results suffer as a result. In
terms of the value for money framework, which one of the following statements is
true?
A
B
C
D
17.
A government body uses measures based upon the three Es to the measure value for
money generated by a publicly funded hospital. It considers the most important
performance measure to be cost per successfully treated patient.
Which of the three Es best describes the above measure?
A
B
C
D
Economy
Effectiveness
Efficiency
Externality
18.
19.
Stakeholders
20.
Shareholders
Customers
Bankers
Government
The agency problem is a driving force behind the growing importance attached to sound
corporate governance.
In this context, the agents are the:
A
B
C
D
22.
23.
Customers
Shareholders
Managers
Auditors
Which of the following are typical criticisms of executive share option schemes
(ESOPs)?
1.
2.
When directors exercise their options, they tend to sell the shares almost
immediately to cash in on their profits.
If the share price falls when options have been awarded, and the options have no
10
3.
A
B
C
D
1 only
1 and 3 only
2 and 3 only
1, 2 and 3
11
1.
2.
3.
Both of them
Statement 1 only
Statement 2 only
Neither of them
A
B
C
D
2 only
1 and 3 only
2 and 3 only
1, 2 and 3
12
A
B
C
D
4.
1 and 2 only
1 and 3 only
1, 2 and 3 only
1, 2, 3 and 4
5.
1
2
3
4
A
B
C
D
1 only
1 and 3 only
2 and 4 only
2, 3 and 4 only
A
B
C
D
1 only
1 and 3
2 and 4 only
2, 3 and 4
(ACCA F9 Financial Management Pilot Paper 2014)
13
6.
7.
8.
As the economy booms and approaches the limits of productivity at a point in time, a
manufacturing business would typically feel which one of the following effects?
A
B
C
D
9.
Higher demand from customers, lower interest rates on loans and increased
availability of credit
A contraction in demand from customers, higher interest rates and less available
credit
Lower taxes, higher demand from customers but less government
subsidies/available contracts
Lower interest rates, lower exchange rates and higher tax rates
Increased inflation (higher sales prices and higher costs), difficulty in finding
suitable candidates to fill roles and higher interest rates
High export demand, increasing growth rates, high inflation and high interest rates
Reducing inflation, falling demand, reducing investment, increasing
unemployment
Higher government spending, lower tax rates, high inflation and low
unemployment
A
B
C
D
10.
1 and 2 only
2 and 3 only
2, 3 and 4 only
1, 2,3 and 4
A
B
C
D
Statement 2: False
Statement 2: True
Statement 2: False
Statement 2: True
II.
Financial institutions
11.
The following statements have been made about a banks rights in relation to its
customers:
(i)
The bank has the right to be repaid overdrawn balances on demand, except where
the overdraft terms require a period of notice.
(ii) The bank can use the customers money in any legally or morally acceptable way
that it chooses.
(iii) A customers money must always be available for immediate withdrawal,
irrespective of the terms of the deposit.
Which of the above statements is true?
A
B
C
D
12.
A
B
C
D
1 only
1 and 3 only
2 and 3 only
1, 2 and 3
(ACCA F9 Financial Management Pilot Paper 2014)
14.
Certificate of deposit
Corporate bond
Commercial paper
Treasury bill
A
B
C
1, 2 and 4 only
1 and 3 only
1, 3 and 4 only
16
15.
D
1, 2, 3 and 4
Comment on the validity of the following statements.
1
16.
Speculative trading on the stock market can assist by smoothing price fluctuations
and ensuring shares are readily marketable.
A key role of the stock market is to determine a fair price for the assets traded
A
B
C
D
Statement 1: True
Statement 1: True
Statement 1: False
Statement 1: False
17.
Statement 2: False
Statement 2: True
Statement 2: False
Statement 2: True
18.
Junk bonds
Commercial paper
Eurobonds
Intercontinental bills
Statement 1: True
Statement 1: False
Statement 1: False
Statement 2: False
Statement 2: True
Statement 2: False
17
D
19.
Statement 1: True
Statement 2: True
A
B
C
D
2 only
1 and 3 only
2 and 3 only
1, 2 and 3
(ACCA F9 Financial Management Pilot Paper 2014)
20.
Which of the following is a difference between primary and secondary capital market?
A
B
C
D
21.
Primary capital markets relate to the sale of new securities, while secondary
capital markets are where securities trade after their initial offering.
Both primary and secondary capital markets relate to where securities are traded
after their initial offering.
Both primary and secondary capital markets relate to the sale of new securities
Primary markets are where stocks trade and secondary markets are where loan
notes trade
There are two main types of financial market: capital market and money markets, and
within each of these are primary and secondary markets.
Which of the following statements is FALSE?
A
B
C
D
Primary markets allow the realization of investments before their maturity date by
selling them to other investors
Primary markets deal in new issues of loanable funds
Capital markets consist of stock markets for shares and loan bond markets
Money markets provide short-term debt finance and investment
18
22.
23.
Rank the following from highest risk to lowest risk from the investors perspective.
1
2
3
4
Preference share
Treasury bill
Corporate bond
Ordinary share
A
B
C
D
1, 4, 3, 2
1, 4, 2, 3
4, 2, 1, 3
4, 1, 3, 2
(5 marks)
At least 60% of the members of the board, excluding the chairman, should be
independent non-executive directors
All directors should submit themselves for re-election at least every three years
There should be clear disclosure of directors emoluments
Non-executive directors should not hold share option in their company
19
25.
26.
Which of the following does NOT form part of the objectives of a corporate
governance best practice framework?
A
B
C
D
27.
The combined code states that all directors should be required to submit themselves for
re-selection:
A
B
C
D
28.
Annually
At least every two years
At least every three years
At least every four years
The Combined Code states that each listed company should provide, within its annual
report and accounts, a corporate governance report that includes:
1.
2.
Which of the following combinations is correct with regard to the above statements?
A
B
C
D
Statement 1
True
True
False
False
Statement 2
True
False
True
False
20
29.
A variety of Corporate Governance rules have been introduced in different countries but
the principles, common to all, typically include
1
2
3
4
A
B
C
D
The chairman and chief executive officer should not be the same individual
Non-executive directors on the board should prevent the board from being
dominated by the executive directors
The audit committee should consist solely of executive directors
A remuneration committee should be established to decide on the remuneration of
executive directors
1 and 2 only
1, 2 and 3 only
1, 2 and 4 only
1, 2, 3 and 4
21