In Australian income tax, which item is classified as assessable income In Australian income tax, which item is classified as assessable income? A. Gift received from family members B. Salary income f

What is the core purpose of an external financial audit What is the core purpose of an external financial audit? A. Detect all frauds in the entity B. Provide reasonable assurance that financial state

Under AASB 116 Property, Plant and Equipment, which method is NOT allowed Under AASB 116 Property, Plant and Equipment, which method is NOT allowed for subsequent measurement? A. Cost method B. Revalu

Which of the following is the fundamental qualitative characteristic of financial statements Which of the following is the fundamental qualitative characteristic of financial statements under Australi

IMA ethical standards core four pillars include: IMA ethical standards core four pillars include: A. Competence B. Confidentiality C. Integrity D. Credibility Answer: ABCD Rationale: Four fundamental

Factors affecting weighted average cost of capital(WACC): Factors affecting weighted average cost of capital(WACC): A. Corporate income tax rate B. Company capital structure(D/E ratio) C. Equity inves

Items increase company’s operating cycle length: Items increase company’s operating cycle length: A. Longer inventory holding days B. Longer accounts receivable collection period C. Shorte

Advantages of NPV capital budgeting method Advantages of NPV capital budgeting method: A. Incorporates time value of money B. Focuses on total incremental shareholder wealth increase C. No arbitrary p

Under CAPM formula, required return = Risk-free rate + β× Under CAPM formula, required return = Risk-free rate + β×? A. Market risk premium B. Company specific default premium C.

Operating leverage is driven by: Operating leverage is driven by: A. Fixed operating cost proportion in cost structure B. Fixed financial interest expense C. Variable raw material unit price D. Income

Preferred stock feature different from common stock: Preferred stock feature different from common stock: A. Fixed predetermined dividend priority before common shareholder B. Voting right for board d

Working capital management core target: Working capital management core target: A. Balance liquidity & profitability of short-term capital B. Maximize long-term fixed asset investment scale C. Inc

Hedging main purpose: Hedging main purpose: A. Eliminate underlying asset’s price fluctuation risk B. Maximize speculative investment profit C. Reduce corporate income tax payable D. Improve inv

Market beta(β)=1 indicates asset’s systematic risk: Market beta(β)=1 indicates asset’s systematic risk: A. Higher than overall market average risk B. Equal to market portfolio av

Higher financial leverage means higher: Higher financial leverage means higher: A. Fixed interest financing expense risk B. Variable production cost fluctuation C. Raw material purchase volatility D.

Which capital budgeting method considers time value of money Which capital budgeting method considers time value of money? A. Payback period B. Discounted cash flow NPV C. Accounting rate of return(AR

Current ratio = Current Asset ÷? Current ratio = Current Asset ÷? A. Total Liability B. Current Liability C. Total Equity D. Long-term debt Answer: B Rationale: Classic short-term liquid

Coefficient of correlation(r) value range: Coefficient of correlation(r) value range: A. 0~+1 B. -1 ~ +1 C. 0~∞ D. -∞~+∞ Answer: B Rationale: r=+1 full positive correlation; r=-1 ful

Project relevant cash flow excludes: Project relevant cash flow excludes: A. Initial equipment outlay B. Annual incremental operating cash inflow C. Historical R&D sunk cost before project approva

Capital structure trade-off theory balances: Capital structure trade-off theory balances: A. Tax shield benefit of debt vs financial distress bankruptcy cost B. Fixed cost vs variable cost proportion

Transfer pricing primary management objective: Transfer pricing primary management objective: A. Minimize global corporate income tax arbitrarily B. Measure divisional performance & align subunit

Quick ratio belongs to which category of financial ratio Quick ratio belongs to which category of financial ratio? A. Profitability ratio B. Liquidity ratio C. Leverage solvency ratio D. Activity turn

Protective covenant in bond indenture restricts issuer’s: Protective covenant in bond indenture restricts issuer’s: A. Major asset acquisition/disposal without creditor consent B. Daily op

EVA (Economic Value Added) measures shareholder value by deducting EVA (Economic Value Added) measures shareholder value by deducting: A. Total operating expense only B. Cost of invested capital from

Zero-based budgeting core characteristics: Zero-based budgeting core characteristics: A. Every expense item needs annual reasonableness justification B. Not based on previous fiscal year’s budge