Financial Management

Personal Assignment

This is a take-home assessment and it is totally prohibited to share

these questions or your answers to anyone.

Choose the right answer

- The role of the MNC financial manager has expanded in recent years to include ___.
A. corporate strategy
B. financial planning and control
C. subsidiary performance
D. multiple environments

- Managers are generally defined as ___.

A. stockholders
B. agents
C. creditors
D. suppliers

-Financial Manager is responsible for:

A. Book keeping financial data

B. Recording the ledgers
C. Analyzing the statements
D. None of the above

-Cash flow from operating activities of the company preferred always to be :

A. Positive
B. Negative
C. zero
D. None of the above.

-Financial Management is concerned by three main financial decisions

A. Operating , financing & investment

B. Net income , operating
C. Financing , Investing & Dividends
D. None of the above
-Cash flow three activities are cash flow from :

E. Operating , financing & investment

F. Net income , operating
G. Operating , investing & Dividends
H. None of the above

-Which of the following balance sheet equations is false?

A. Assets - Liabilities = Shareholders' Equity

B. Assets =
Liabilities +
Shareholders'
Equity
C. C)
D.
E. Assets - Current
Liabilities = Long
Term Liabilities
F. D)
G.
H. Assets - Current
Liabilities = Long
Term Liabilities +
Shareholders'
Equity
I. Assets =
Liabilities +
Shareholders'
Equity
J. C)
K.
 L. Assets - Current
Liabilities = Long
Term Liabilities
M. D)
N.
O. Assets - Current
Liabilities = Long
Term Liabilities +
Shareholders'
Equity
B. Assets = Liabilities + Shareholders' Equity
C. Assets - Current Liabilities = Long Term Liabilities
D. Assets - Current Liabilities = Long Term Liabilities + Shareholders'
Equity

-Statement of financial position is called:

A. Balance sheet
B. Income statement
C. Cash flow
D. None of the above
-Reserves in the balance sheet means:

A. Funds set aside to pay any unknown future obligations

B. Funds which are required by law
C. They are essential specially in the banks & insurance company
D. All the above

-Provisions in the finance means:

A. Amount of an expense
B. Represents the profit of the company
C. It can interchangeably used with the reserves
D. None of the above

-Balance sheet is always presented as follows:

A. ‘As of ’ the period

B. ‘End of ‘ the period
C. Middle of the period
D. None of the above

-Stakeholders that need to view the company financial statements.

A. Stock holders
B. Stakeholders
C. Suppliers
D. Regulator

-The best credit decision when short term assets are financed from

A. Mortgage
B. Long term loans
C. Issuing Bonds
D. Short term loans

-The competitors of commercial bank nowadays

 A. Fintech
B. Micro financing companies
C. Telecommunication companies
D. All the above

-ESOP in finance is an abbreviation to

A. Employee Stock ownership program

B. England Social Organization Paradise
C. Employee satisfactory organizational progress
D. Non of the above .

-If the company achieves Sales amounted EGP 350K and during the same period
there were Sales return amounted EGP20K, Net Sales is

A. EGP 370K
B. EGP 350K
C. EGP 20K
D. Non of the above

-You are an auditor and one of your comments after reviewing a dentist medical
center that the income statements involve.

A. COGS
B. Rent Expense.
C. Revenue
D. Net profit

-Digital Money is

A. Bitcoin
B. CBDC
C. Encrypted currency
D. All the above

- Investment Bank plays the same role as

A. Commercial Bank
B. Regulator
C. Insurance Company
D. None of the above

- When a company wants to issue share and be listed in the company, it goes for
 A. Regulator
B. Commercial Bank
C. Insurance Company
D. None of the above

Put (True) or (false) with justification to the false statement

1-Financial Management concerns with one type of business form.

False , 3 business Forms

2-Balance sheet & Income statements are the main financial statements & both are
snapshot of firm’s financial position at one point of time.
False , there are also the Cash flow and Entrum statements

3- Net profit is (Retained earnings – dividends) + Current assets.

False , net profit is Revenue- Cost/expenses, tax , depreciation and amortization, and
has nothing to do with balance sheet attributes

4-Co-integration of the financial statements is to properly analyze each statement

solely.
True

5- Bookkeeping of financial transactions & preparation of the statements is done by

the financial analyst not the Accountant.
False , this is done by the accountant

6-Financial managers always advice the board to take a long term loan to cover all the
company requirements especially for financing inventory.
False , it depends on various factors

7- Profits is resulted from the income statement .

True

8-Co-integration of the financial statements can be done without obtaining the income
statement.
False , all statements are correlated

9- In case of bankruptcy , The shareholders are the first who take their money .
False , governmental institutions

10-Technology has no effects on finance because it is one of the fundamentals that

cannot be changed or updated.
False , Technology transforms everything
11- Bond is a corporate debt issued by the company to be traded in the financial
markets.
True

12- Stock is a corporate debt issued by the company to be traded in the financial
market
False , stock is form of ownership

13- Entrepreneurs don’t use the financial statements in analyzing the financial
position of the company.
False , all companies regardless of their size use financial statements

14- There is no relationship between the financial statements of the company.

False , they are integrated

15- Cash flow statement is prepared for calculating the profits of the company
False , it is to classify the cash movement between different activities

16- Syndication loans for one bank is to grant the total amount of the facility to the
customer that has shortage and needs the money.
False , Multiple lenders pool together and form a syndicate to provide the borrower
with the requested capital.

17- Best way of financing the short term assets of the company is depending on the
mortgage financing.
False , short term loans or flexible payment terms

18- The cost disappears after payment and is not related by any adding value item.
False , all transactions are recorded

19- The Assets are the source of the finance of the company.
False , Liabilities

20- Money market is the capital market.

False , money market deals in short term products unlike the capital market
Complete the following:

 Time deposit is a component of the economy which provides the short-term

funds, generally a period less than one year.

 Bonds are the governmental debt instruments and considered as very-low

risk / zero bankruptcy risk.

 The long term debt and equity instruments are traded through Capital
markets.
  It is financial institution that is licensed from the regulator to receive deposits
and grant loans and it is the main lifeblood of the economy, It is called
commercial Banks

 When principle hires another party to act on his behalf, this is called Agent

 The main difference between preferred stock and common stock stocks that
the first has no voting power to shareholders and the second has priority in
company’s income.
.

 The financial manager main target is increasing of the Value company.

Best of Luck