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ACCA Financial Management FM Exam Practice Questions 2023 - Part 9

Mary Smith

Sat, 23 May 2026

ACCA Financial Management FM Exam Practice Questions 2023 - Part 9

1. In finance, 'working capital' means the same thing as __________.

A) Total assets.
B) Fixed assets.
C) Current assets.
D) Current assets minus current liabilities.



2. Earlier a debt equity norm of _______ was generally insisted on by the controller of capital issues.

A) 1:1
B) 1:2
C) 2:1
D) 2:2



3. The market value of the firm is the result of__________.

A) Dividend decisions.
B) Working capital decisions
C) Capital budgeting decisions.
D) Trade-off between risk and return.



4. Long term finance is required for ______________.

A) Current assets.
B) Fixed assets.
C) Intangible assets.
D) None of these.



5. _____________ is not a diversifiable or specific risk factor.

A) Company strike.
B) Bankruptcy of a major supplier.
C) Death of a key company officer.
D) Industrial recession.



1. Right Answer: C
Explanation:

2. Right Answer: C
Explanation:

3. Right Answer: D
Explanation:

4. Right Answer: B
Explanation:

5. Right Answer: D
Explanation:

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