MBA | Financial Management

Assignment 2

By
Fouad Hassan Elwakil

Supervised By
Dr. Mohamed Elsemary
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 :

A. Operating, financing & investment

B. Net income, operating.
C. Operating, investing & Dividends
D. 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 it is related to several activities like planning and purchasing…

2-Balance sheet & Income statements are the main financial statements & both are
snapshot of firm’s financial position at one point of time.
False , balance sheet shows the company statement as if at one point but
financial statements is cumulative view of your income over a period of time

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

False, net profit is the company profit after cogs, expenses, interest and taxes

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

solely.
False we must analyze all the documents together to gather the full financial
statement of the company

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

the financial analyst not the Accountant.
False it is the accountant responsibility

6-Financial managers always advice the board to take a long term loan to cover all the
company requirements especially for financing inventory.
 False , long term loan for long investment while short term for the short period
investment and operations.

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 , income statement is very important for the full analysis.

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

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

cannot be changed or updated.
False , has a great effect

11- Bond is a corporate debt issued by the company to be traded in the financial
markets.
FALSE, bond issued to raise capital

12- Stock is a corporate debt issued by the company to be traded in the financial
markets. True

13- Entrepreneurs don’t use financial statements in analyzing the financial position of
the company.
False, as the financial statement shows, Opportunities for cutting costs, Identify
customers that are paying late ,etc

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

False , there is a relation as they are used in a whole for the full analysis

15- Cash flow statement is prepared for calculating the profits of the company.
False , cash flow statement is the record of the cash inflow or out from the
company

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 , several banks
17- Best way of financing the short term assets of the company is depending on the
mortgage financing.
False , now we must match tenor

18- The cost disappears after payment and is not related by any adding value item.
False , nothing disappears and its related

19- The Assets are the source of the finance of the company.
False , liabilities like equity, RE, loans are the source of finance.

20- Money market is the capital market.

False As money market for short term and capital for long term

Complete the following:

 Current Liabilities 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 Principle
agent relationship.

 The main difference between Preferred and Common 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 Value of the company.

Best of Luck