Strategic Financial Management True False Questions(Strategic Finance Quiz - 2)

1. Short term financing is meant for funding working capital of a company.
[A]TRUE
[B]FALSE



2. Money becomes less valuable when received at a latter stage instead of in present time.
[A]TRUE
[B]FALSE



3. The intellectual assets of a company are often worth or 4 times the tangible book value.
[A]TRUE
[B]FALSE



4. Valuation of current investments on overall basis is not considered appropriate.
[A]TRUE
[B]FALSE



5. The activity model is normally created by an activity Accountant.
[A]TRUE
[B]FALSE



6. Value based approach of HRA tracking can be divided into 2 categories - Non - monetary & monetary.
[A]TRUE
[B]FALSE



7. There are few methods of allocating depreciation over the useful life of an assets.
[A]TRUE
[B]FALSE



8. Only firms with a large amount of financial slack can afford tender offers.
[A]TRUE
[B]FALSE



9. The chance of bankruptcy is small when the leverage of a firm is small.
[A]TRUE
[B]FALSE



10. A change in the method of depreciation is treated as a change in an accounting policy and is disclosed accordingly.
[A]TRUE
[B]FALSE



11. Arbitrage process implies that security cannot sell at different prices.
[A]TRUE
[B]FALSE



12. A long term investment is an investment other than a current investment.
[A]TRUE
[B]FALSE



13. Accounting standards (AS - 1 is now mandatory.
[A]TRUE
[B]FALSE



14. Odd lots purchase is not a method of buy back of shares.
[A]TRUE
[B]FALSE



15. In market value approach, interested parties never manipulate the stock markets.
[A]TRUE
[B]FALSE