1. Which of the following is a long-term financial goal of a firm?

a) Profit maximization.

b) Maximising the firms solvency

c) Maximising shareholders wealth

d) Maximising the firms liquidity

2. Which one of the following is not the primary function of the Finance Manager?

a) Entering the companys transactions in the primary books of accounts.

b) Making investment decisions

c) Ensuring Profitability

d) Ensuring Solvency

3. Financial Management is base on which of the 3 principles:

a) Cost-benefit Principle, Profit maximisation principle and Time value of money principle

b) Wealth maximisation principle, Profit maximisation principle and Time value of money principle

c) Time value of money principle, Risk-return principle, and Cost-benefit principle.

d) Risk-return principle, Cost-benefit principle, and profit maximisation principle.

4. Which one is not correct?

a) Assets = Liabilities + Owners Equity

b) Assets = Owners Equity Liabilities

c) Liabilities = Assets Owners Equity

d) Owners Equity= Assets -Liabilities

5. Accounting entity refers to:

a) The universal accounting denominator used to express assets, liabilities, and owners equity so as to describe the financial position of an entity.

b) The fact that the business entity will continue in operational existence for the foreseeable future.

c) The entry of the entity s assets into account in the accounting process at the cost the entity incurred in acquiring them.

d) The entity to which the financial information pertains to.