1.Which one of the following is least likely to be an agency problem?

A. Increasing the size of a firm

B. Concentrating on maximizing current profits
C. Closing a division with net losses
D. Increasing the market value of the firm's shares
E. Obtaining a patent for anew product
2. Which of the following accounts are included in working capital management?
I .Accounts payable
Il. Accounts receivable
I. Fixed asset
IV. Inventory
→ I, I and IV
3. Short-term cash flow improvement may not be achieved by
A. Increasing trade payables
B. Reducing trade payables
C. Reducing inventories
D. Reducing trade receivables
4. A Stakeholder is:
A. A person who owns shares of stock
B. Any person who has voting rights based on stock ownership of a corporation.
C. Aperson who initially founded a firm and currently has management control over that firm.
D. Any person or entity other than a stockholder who potentially has a claim on the
cash flows of a firm.
5. Which of the following questions are addressed financial managers?
I. How should a product be marketed?
I. Should customers be given 30 or 45 days to pay for their credit purchases? III. Should the
frm borrow less money?
IV. Who should be recruited for the sales department?
V. Should the firm acquire new equipment?
→ II, Ill and V
6. Which one of the following is a capital budgeting decision?
A. Determining how many shares of stock to issue
B. Deciding whether or not to purchase a new machine for the production line
C. Deciding how to refinance a debt issue that is maturing
D. Determining how much inventory to keep on hand
E Determining how much money should be kept ni the checking account
7. Which one of the following statements concerning a sole proprietorship is correct?
A. A Sole proprietorship is designed to protect the personal assets of the owner.
B. The owner of a sole proprietorship is personally responsible for all of the
company's debts.
C. The profits of a sole proprietorship are subject to double taxation
D. A sole proprietorship is structured the same as a limited liability company,
8. Which statement of the following is incorrect?
I. Dividend policy is related to the distribution of profit before tax.
I. A firm can choose between debt and equity ot raise money.
I. Working capital management is related to long-term investment ni fixed assets.
IV. A new share issue is carried out on the primary market
V. A firm needs to evaluate customer creditworthiness before granting them credit sales.
 →I and III
→ Dividend policy is related ot the distribution of profit before tax: This
statement is not entirely accurate. Dividend policy is related to the distribution of
net income or profit after tax, not before taã
→ Working capital management is related to long-term investment in fixed
assets: This statement is incorrect. Working capital management involves
managing short-term assets and liabilities, not long-term investments in fixed
assets.
9. Which one of the following forms of business organization is best suited to raising large
amounts of capital?
A. Sole proprietorship
B. Limited liability company
C. Corporation
D. General partnership
10. Which one of the following best states the primary goal of financial management?
→ Maximize the current value per share
11. Which of the following best describe the function of financial markets?
I. Bridge capital supply and demand
Il. Transfer risks among market participants
III. Set up legal requirements for establishing companies
IV. Provide different payment methods
V. Sell and buy financial assets
→ I, Il and V
→ Set up legal requirements for establishing companies: This is typically the role
of regulatory bodies or government agencies, not financial markets.
→ Provide different payment methods: While financial institutions like banks do
provide different payment methods, this is not a primary function of financial
markets.
12. Which one of the following is a primary market transaction?
A. Sale of existing outstanding stock by a dealer to an individual investor
B. Sale of a new share of stock to an individual investor
C. Stock ownership is transferred from one shareholder ot another shareholder
D. Gift of stock from one shareholder to another shareholder
E. Gift of stock by a shareholder to a family member
13. Which one of the following financial decisions immediately changes the firm's average
cost of capital?
A. Invest in a new potential project
B. Employ more debt
C. Store more finished products
D. Increase dividend pay-out ratio
14. A Business created as a distinct legal entity and treated as a legal "person" is called a:
A. Corporation
B. Sole proprietorship
C. Partnership
D. Unlimited liability company

15. Explain why the amount of money you receive becomes larger when the compounding
period is shorter (at the particular stated annual interest rate).
- The interest is added to the principal at regular intervals, and then the interest is calculated
on the new balance. The more frequently the interest is compounded, the faster the balance
grows.

16. What is the relationship between real and nominal interest rates? During the period of
high inflation at the rate of 10%, bank offers you the stated annual rate 8% with yearly
compounding. Should you accept the bank's offer?
-The relationship between real and nominal interest rates si given by the Fisher equation,
which states that the nominal interest rate is equal to the sum of the real interest rate and the
inflation rate
-During a period of high inflation, the nominal interest rate may be lower than the inflation
rate, which means that the real interest rate is negative. This implies that the purchasing
power of money decreases over time, and that lenders and savers lose money in real terms.
Borrowers and investors, on the other hand, benefit from a negative real interest rate, as
they pay back less ni real terms than they borrowed or invested
-Real interest rate = nominal interest rate - inflation rate
Real interest rate = 8% - 10%
Real interest rate = -2%
-This means that you will lose 2% of your money's value in real terms if you accept the
bank's offer. Therefore, unless you have no other option or you expect the inflation rate ot
decrease significantly ni the future, you should not accept the bank's offer. You would be
better off looking for an alternative investment or loan that offers a higher nominal interest
rate or a lower inflation rate.
17. What are the main applications of the timeline in solving the time value of money?
A. It informs when the inflows happen.
B. It informs the discount rate of the cash flows.
C. It informs whether or not a cash flow is an inflow or an outflow.
D. It informs when a cash flow happens and the characteristics of a cash flow, inflow or
outfilow.
18. Which of the following cash flows is an ordinary annuity?
(1) The renting payment of VND 10 million at the end of each year in 5 years
(2) The earnings from an investment with VND 100 million at the end of the first 2 years and
VND 150 million per year for the next 3 years
(3) Firm X continuously pays VND 5,000 per share with the annual rate of growth at 5%
(4) You put VND 10 million at the beginning of each year in 10 years
→Only 1

19. If you want to know how much money you have to ot invest ni assets today get a
particular amount of money after 10 years, you have to use:
A. The future value of a single cash flow
B. The future value of perpetuity
C. The future value of annuity
D. The present value of a single cash flow
20. To calculate the future value of cash flows, we need information on which components:
A. The amount of money and the discount rate
B. The discount rate and when the money occurs
C. The amount of money, the discount rate, and when the money occurs
D. The amount of money and the date of money
21. When the discount rate increases and other factors are kept unchanged, the present
value (PV) of the perpetuity with equal payments at the end of each period wil
A. No change since payments last forever
B. Decrease since PV positively correlates with the discount rate
C. Increase since PV negatively correlates with the discount rate
D. Decrease since PV negatively correlates with the discount rate

22. For a specific initial amount of investment, at a particular interest rate, when the
compounding period becomes shorter, the future value of this money after a specific period
becomes:
A. Smaller
B. No change
C. Larger
D. Either smaller or larger
23. At a specific economic scenario, compound calculation can bring larger future value to
investors than simple calculation because:
A. The simple calculation ignores interest payment
B. The compound calculation composes the interest payments of the previous period
in the principal of current period
C. The compound calculation has higher discount rate than the simple calculation
D. The simple calculation adds the interest payments of the previous period in the principal
of current period
24. If you have information on the present value of an ordinary annuity (assume A), how can
you calculate the present value of the annuity due at the discount rate r?
A. Multiple Aby r
B. Divide Aby r
C. Multiple A by (1+r)
D. Multiple A by r/(1+r)
25. Firm X offers a quarterly dividend of VND 2,000 continuously with the rate of growth at
10%. To evaluate the current price of the company Xs' offer, you should apply:
A. The formula for the present value of an ordinary annuity
B. The formula for the future value of perpetuity
C. The formula for the present value of a due annuity
D. The formula for the present value of a growing perpetuity

26. What is the main difference between annuity due and ordinary annuity?
A. The discount rate
B. The periodic payments
C. The length of payment period
D. The date of the first payment

27. The present value of the annuity due with equal payments is different from the PV of the
ordinary annuity with equal payments by
A. (1+r)/r
B. 1/(1+r)
C. r + 1
D. r/(1+r)
28. The stated annual rate becomes the effective annual rate when considering:
A. The Inflation Of An Economy
B. The expected return of the investors
C. The compounding period
D. The date of investment
29. The future value of VND 100 million today at the rate of 12% after 10 years ni the
following with compound calculation is:
A. VND 112 million
B. VND 220 million
C. VND 83 million
D. VND 310.6 million

30. The difference in the future value of VND 10 million today at the rate of 12% after 10
years when using the compound and simple interest calculation is:
A. VND 120 million
B. VND 332.769 million
C VND 212.769 million
D. VND 90.584 million

31. M.r X Puts money in two investment opportunities. The first investment brings VND 1
million at the end of each year in 5 years. The second opportunity provides him with VND 2
million at the end of each year in the first 3 years and VND 3 million in 2 years later. If the
interest rate is kept constant at 10% per year. How much money will Mr.X receive after 5
years?
A. VND 18.315 million
B. VND 24.420 million
C. VND 14.940 million
D. VND 20.415 million

32. Mr. Xis considering buying anew house. He expects to own this house in 10 years and
sels at the end of the year with the price of VND 15. billion. If the discount rate is kept stable
at 12%, how much money Mr.X is willingness to pay today to buy this house?
A. VND 1,017.040 million
B. VND 482.960 million
C. VND 1,500 million
D. VND 2,300 million
33. Firm X Intends to pay VND 3,500 per share next year and continuously pays its dividend
at the constant growth rate of 7%. Fim Y Plans to keep its dividend constantly grow at the
rate of 5%. Assuming the discount rate at 12%, if the share price of firm Y is equal to firm X,
how much is the dividend of firm Y Next year?
A. VND 8,400
B. VND 4,900
C. VND 10,000
D. VND 3,500
34. How much of money you have to invest today to get an ordinary annuity with VND 3
milioni in the first six years and VND 5 million in the next four years if the discount rate is
12%?
A. VND 38.308 million
B. VND 13.028 million
C. VND 20.028 million
D. VND 12.334 million
35. How much of money M.r X Has to deposit in the bank today if he wants ot get VND 30
million after 5 years. Assume that the stated annual rate at 10%, compounding yearly.
A. VND 186.280 million
B. VND 30 million
C VND 450 million
D. VND 30 million

36. If today you put VND 10 million in a savings account in a bank at the stated annual
interest rate of 12%. How much interest payment will you receive after 5 years when the
bank pays semi-annually?
A. VND 1.338 million
B. VND 17.623 million
C. VND 7.910 million
D. VND 1.689 million
37. Today you deposit VND 100 million in the bank and expect to receive VND 112 million
next year. If the inflation is expected at the rate of 5% for the coming year, what is the real
interest rate of this investment?
A. 12.00%
B. 5.00%
C. 6.67%
D. 19.00%
38. Firm X Intends to pay VND 3,000 per share next year. If firm X Continuously pays its
dividend with the constant rate of growth 5%, assuming the discount rate at 12%, what is
today price of Firm X’s share?
A. VND 60,000
B. VND25,000
C. VND 17,647
D. VND 42,860

39. Firm X intends to pay VND 3,000 per share next year and continuously pays its dividend
at the constant growth rate of 6% per year. Firm Y Pays VND 4,500 per share next year.
Firm Y's dividend will constantly grow at the rate of 3% per year. Assuming the discount rate
at 12%, what is the difference ni today-price of Firm X And Firm Y's share?
A. The share price of firm Xis VND 100,000 less than the share price of firm Y
B. The share price of firm X is equal to the share price of firmY
C. The share price of firm Y is VND 12,500 higher than the share price of firm Y
D. The share price of firm X is VND 25,000 less than the share price of firm Y

40. Which of the following events leads to the systematic risk?

A. The company loses 10 containers of clothes
B. The Government releases information on increasing national debt
C. The oil prices decline due ot the surplus supply ni the world market
D. The firm informs an increase in sale of the next quarter
41. The beta of stock Asi 1.5.
Which of the following statements is true when interpreting the beta of the stock A:
A. The standard deviation of the return of stock A is 1.5
B. The expected return on the stock A is equal to the expected return on the market
C. The returns of the stock Are magnified 1.5 times over those of the market
D. The expected return of the stock Asi 1.5. higher than the expected return of the market
42. The contribution of an individual security to the variance of the portfolio is best measured
by:
A. The expected return on a security
B. The variance of a security
C. The covariance of a security with the market portfolio
D. The beta coefficient
43. Which of the following statements is true when talking about the security with beta 0:
A. The expected return on a security is equal to the expected return on the market
B. The variance of a security is zero
C. The covariance of a security with the market portfolio is 1
D. The expected return on this security is equal to the risk- free rate

44. Which of the following statement is true when talking about two securities X( and Y) with
correlation between returns equal 1?
A. They are perfectly negatively correlates
B. Both the return on security Xand the return on security Yare higher than the
average at the same time
C. The covariance of two securities is 1
D. The return on security Xis higher than the average while the return on security Yis lower
than the average.
45. Stock which has higher correlation with market tend to have A. High beta, less risky
B. Low beta, more risky
C. High beta, more risky
D. Low beta, less risky
→ The stock's returns will be more unpredictable and volatile
→ Lower correlation, lower beta, less risky: The stock's returns will be more
stable and consistent
46. In asset portfolio, the number of stocks increases to A. Reduce return
B. Reduce average return
C. Reduce risk
D. Increase prices
47. Standard deviation of a particular stock is divided by the expected rate of return is used
to calculate:
A. Coefficient of variation
B. Coefficient of deviation
C. Coefficient of expected return
D. Coefficient of average return
48. Risk per unit of return or stand-alone risk is represented by
A. Coefficient of standard
B. Coefficient of return
C. Coefficient of variation
D. Coefficient o f deviation
49. Greater chance of lower actual return than expected return and greater variation is
indicated by:
A. Smaller standard deviation
B. Larger standard deviation
C Smaller variance
D. Larger variance
50. Chance of occurrence of any event is classified as:
A. Probability
B. Risk
C. Chance
D. Event happening
51. Type of premium asked by investors for bearing risk on average stock is classified as:
A. Average premium
B. Market risk premium
C. Stock premium
D. Buying discount
52. Method and model used to analyze the relationship between rates of return and risk is
classified as:
A. Capital asset pricing model
B. Portfolio asset pricing model
C. Asset market pricing model
D. Portfolio pricing model
53. Portfolio, which consist of perfectly positive correlated assets have no effect of:
A. Negativity
B. Positivity
C. Correlation
D. Diversification

54. In capital asset pricing model, assumptions must be followed including:

A. No taxes
B. No transaction costs
C. Fixed quantities of assets
D. All of the above
55. Standard deviation is 18% and coefficient of variation is 1.5, an expected rate of return
will be
A. 27.00%
B. 12.00%
С. 19.50%
D. None of the above
56. Market risk premium is 8% and risk free return is 7% then market required return would
be:
→15%

57. Required return is 1% and premium for risk is 8% then risk free return will be:
→ 3%

58. An amount invested is VND 1,500 million and an amount received is VND 2,000 million
then the dollar return would be:
→VND 500 million
59. Yield on bond is 7% and market required return is 14% then market risk premium would
be:
→ 7.00%

60. Suppose a stock had an ending share price of VND 25,000, paid a dividend of VND1,000
per share and had initial price of VND 22,000, the percentage of total return is:
→ 18.18%

61. You own a stock portfolio invested 30% in stock A. 20% in stock B, 10% in stock C, and
40% in stock D. The betas of these four stocks are 1.2, 0.6, 1.5, and 0.8 respectively, the
portfolio beta is:
→0.95

62.Suppose the risk free rate is 8%, the expected return on the market is 16%. If a particular
stock has beta of 0.7, its expected return is:
→13.60%
63.A Stock has an expected return of 13%, the risk free rate is 7%and the market risk
premium is 8%, the beta of this stock is:
→0.75
64. A Stock has an expected return of 17%, its beta is 5 and the risk free rate is 7%. What
must be the expected return on the market?
→9.00%

65.. A Stock has an expected return of 22%, its beta is 1.6, and the expected return on the
market is 16%, the risk free rate must be:
→6,00%

66. A Portfolio includes two stocks A And B. The expected returns of the stock Aand Bare
19% and 8% respectively. The standard deviations of stock A and B are10% and 5%
respectively. The amount invested in stock A is VND 720 million while the amount
invested in stock B is VND 480 million. What is the expected return of the portfolio?

→The total value of the portfolio is VND 720 million + VND 480 million =
VND 1200 million.
→The weight of stock A is VND 720 million / VND 1200 million = 0.6.
→The weight of stock B is VND 480 million / VND 1200 million = 0.4.
→Expected Return = (0.6 x 19%) + (0.4 x 8%) = 14.6%

67. Which of the following statements is true?

A. Systematic risk is also known as diversifiable risk
B. Systematic risk is a type of risk that can only affect one or some industries
C. Unsystematic risk is also called market risk
D. Unsystematic risk can be reduced by diversification

68. Two measures of asset efficiency are:

A. Average collection period and debt ratio
B. Days in inventory and average collection period
C. Total asset turnover and current ratio
D. Working capital turnover and return on assets

69. Which of the following is not a current asset?

A. Inventory
B. Prepaid Insurance
C. Fixtures

70.4Current assets MINUS current liabilities is the

A. Current Ratio
B. Net Worth
C. Net Working Capital

71. Current assets DIVIDED BY current liabilities is the

A. Current Ratio
B. Quick Ratio
C. Working Capital Ratio
72. The quick ratio EXCLUDES which of the following?
A. Accounts Receivable
B. Inventory
C Cash
73. Gross margin is added to cost of sold goods to calculate:
A. Revenue
B. selling price
C. unit price
D. bundle price
74.______a snapshot of the financial condition of the firm at a particular time.
→The balance sheet provides

75. if the interest rate on debt is higher than BEP, then a firm will —— by increasing the use
of debt in the capital structure.
A. increase the ROE
B. not change the ROE
C. decrease the ROE
D. change the ROE in an indeterminable manner
E. noneoftheabove
→BEP: Break - even point
76. A measure of asset utilization is
A. sales divided by working capital (Days working capital)
B. return on total assets
C. return on equity capital
D. operating profit divided by sales
E. none of the above
77. Return on total assets is a function of
A. interest rates and pre-tax profits
B. the debt-equity ratio
C. the after-tax profit margin and the asset turnover ratio
D. sales and fixed assets
E. none of the above
78. Which of the financial statements recognizes only transactions in which cash changes
hands?
A. Balance Sheet
B. Income Statement
C. Statement of Cash Flows
D. A And B
E. A, B, and C

79. Common size financial statements make it easier to compare firms ____
A. of different sizes
B. in different industries
C. with different degree of leverage
D. that use different inventory valuation methods (FIFO with LIFO)
E. none of the above
80._____ is a measure of what the firm would have earned if it didn't have any obligations to
creditors or tax authorities.
A. NetSales
B. Operating Income
C. Net Income
D. Non-operating Income
E. Earnings Before Interest and Taxes

81. Afirm has a higher quick (or acid test) ratio than the industry average, which implies. A.
The firm has a higher P/E ratio than other firms ni the industry.
B. The firm is more likely to avoid insolvency ni short run than other firms in the
industry
C. The firm may be less profitable than other firms in the industry.
D. A And B.
E. B and C.
82. Afirm has a higher asset turnover ratio than the industry average, which implies
A. The firm has a higher PE/ ratio than other firms in the industry.
B. The firm is more likely to avoid insolvency in short run than other firms in the industry
C. The firm is more profitable than other firms in the industry.
D. The firm is utilizing assets more efficiently than other firms in the industry.
E. The firm has higher spending on new fixed assets than other firms in the industry.
83. A Firm's current ratio is above the industry average, however, the firm's quick ratio is
below the industry average. These ratios suggest that the firm
A. is very efficient at managing inventories
B. Has currently liquidity that is better to the average firm in the industry
C. is near technical iínolvency
D. none of the above
84. If cost of goods sold is VND 8,000 million, gross profit is VND 5,000 million then revenue
will be
→ VND 13,000 million
85. A firm has a P/E ratio of 12 and a ROE of 13% and market to book value of
→ 1,56
→P/E ratio = stock price/ Earnings per share
ROE = Earnings per share/ Book value per share
86. Afirm has a(net profit/pre-tax profit ratio) of 0.625, a debt - equity ratio of 1.2, a (pre-tax
profit/ EBIT) of 0.9, an ROE of 17.82%, a current ratio of 8 and a return on sales ratio of 8%.
The firm's asset turnover is
→ 1,0125
87. A Firm has an BEP of 14%, a debt/equity ratio of 0.8, a tax rate of 35%, and the interest
rate on the debt is 10%. The firm's ROE is
→ 11,18%

88. Firm A has aReturn on Equity (ROE) equal to 24%, while firm B hasan ROE of 15%
during the same year. Both firms have a total debt ratio equal to 0.8. Firm A has an asset
turnover ratio of 0.9, while firm B Has an asset turnover ratio equal to 0.4.From this we know
that
A. Firm A has a higher profit margin than firm B
B. Firm B has a higher profit margin than firm A
C. Firm A and B have the same profit margin
D. Firm A has a higher equity multiplier than firm B
E. Need more information
89. if a firm has VND 10 billion in inventories, a current ratio equal to 1.2, and a quick ratio
equal to 1.1, what is the firm's Net Working Capital?
→200 billion
90.Felton Farm Supplies, Inc, has an 8 percent return on total asset of VND 300,000 million
a net profit margin of 5%. What is its sales?
→ 480,000 million
91.The manager of firm A gives you the following information :sales =4.8 billion VND, total
debt = 1.5 billion, debt ratio = 40%, ROE = 18%. Calculate ROA?
→ 10,8%
92.Saunders Corp. has current liabilities of VND 435,000 million, a quick ratio of 0.95,
inventory turnover of 6.2, and a current ratio of 1.6. What is the cost of goods sold for the
company?
→ VND 1,753,050 million
93.ABC Company has current liabilities of VND 15 billion. Cash makes up 10% of the
current assets and accounts receivable makes up another 40% of current assets. ABC's
current ratio = 2.1 times. Calculate the value of inventory listed on the firm's balance sheet?
→VND 15.75 billion
94. XYZ has current liabilities = VND 5 billion, current ratio = 2 times, inventory turnover
ratio =8 times, DSO = 30 days, and sales =VND 42 billion, COGS = VND 32 billion.
Calculate the value of cash and marketable securities.
→ VND 2.5 billion
95.Kanji Company had sales last year of VND 265 billion, including cash sales of VND 25
billion. fI its average collection period was 36 days, the ending accounts receivable balance
is
→ VND 24 billion
→Ending accounts receivable = Average daily sales x Average collection period

96. For its most recent year company had Sales (al on credit) of VND 830,000 million and
Cost of Goods Sold of VND 525,000 million. At the beginning of the year its Account
Receivables was VND 80,000 million and its Inventory was VND 100,000 million, At the end
of the year its Accounts Receivable was VND 86,000 million and its Inventory was VND
110,000 million
A.inventory turnover ratio for the year wứa
→5.0
B.The accounts receivable turnover ratio for the year was
→10.0
C.On average how many days of sales were in Accounts Receivable during the year?
→36

97. What problem happens in current assets if the current assets much more excessive than
the accounts payable?
A. Overtrading
B. Underinvestment
C. Lack of working capital
D. Overinvestment

98. Which of the following activities increases the cash in balance:

A. A company receives a tax refund
B. A company purchases marketable securities
C. A Company issues long-term debt
D. A company purchases fixed assets
99. If this year the ABC firm remains the same level of sales as last year but give more
credits ot its customers, the accounts receivable period this year would be
A. Shorter than last year
B. Equal to last year
C. Longer than last year
D. No change
100.Which of the following activities decreases the cash in balance:
A. Astocks company sells short-term
B. A company disposes of less effective non-current assets
C. A company pays insurance claim
D. A Company reduces inventory
101. Which of the below activities affects the net working capital of a company this year?
A. Using cash to pay out dividends for 1 million common shares; VND 2,000 per share
B. Using cash to pay off a purchase of raw materials at value VND 50 million
C. Acustomer pays VND 100 million from last year
D.Buying raw materials from a supplier with the one year delay in payment.The
purchase is VND 200 million.

102. Company ABC is a food manufacturer. Which of the following items is a non-current
asset when considering the financial position of ABC?
A. Short-term liabilities
B. Unfinished products
C. Trucks for delivery
D. Cash in banking deposit
103. If a company kept the depreciation expenses of a fixed asset constant during the useful
life that means
A. The company applied the accelerated depreciation method for the fixed asset
B. The company employed the double-declining depreciation method for the fixed asset
C. The company used the straight-line depreciation method for the fixed asset

104.Please finish the table with the following information:

Criteria Value
(days)

Raw material holding period in inventory 10

Average production period 45

Finished goods period 30

Inventory period 85

Accounts payable period 45

Account receivable period 60

Operating period 145

→Inventory period = 10 + 45 + 30 = 85 days

Operating period = 85 + 60 = 145 days
Cash cycle = 145 - 45 = 100 days

—Formula
-Inventory period = Raw material holding period + Average production period +Finished
goods period
-Operating period = Inventory period + Account receivable period
-Cash cycle = Operating period - Accounts payable period
105. Firm T Receives 60% of quarterly sales in cash and the remaining after 1 month. If the
revenue of each quarter is 120 million VND, how much of cash firm T will get next quarter?
A. VND 72 million
B. VND 48 million
C. VND 120 million
D. VND 24 million
106. If the just-in-time delivery policy reduces the cost of ordering additional inventory by a
factor of 400. What will happen to the optimal ordered size using the EOQ model?
A. No change
B. Increase by 20 times
C. Decrease by 10 times
D. Increase by 10 times
107. Firm M has the annual demand for plastic bags ni the quantity of 7,000 bags. The cost
of each order is VND1,5 million; the carrying cost is VND 5,250/one bag What is the optimal
quantity ordered using EOQ model:
→ 2000 bags
108. In the following with the straight-line depreciation method, the depreciation expenses is
the ratio between:
A. (Acquisition cost - salvage value) and the total life of the asset
B. (Acquisition cost - interest payment) and the useful life of the asset
C. (Acquisition cost - salvage value) and the effective economic life of the asset
109.Firm L has annual demand for carton boxes in the quantity 8000 boxes. The cost of
each order is VND2.5 million; the carrying cost is VND 10,000/one box. What is the total cost
of inventory over a year in the following with EDQ?
→20 million
110.Firm Z has the annual demand (in 365 days) for plastic bags in the stable quantity of
7,000 bags. The cost of each order is 1.5 million VND; the carrying cost is 5,250 VND/one
bag. If it takes 7.3 days for Firm to get the bags, what level of inventory, Firm Z should
reorder?
→140 bags
→ Reorder point = (7000/365x7.3) = 140 bags → Formula:
Reorder point = (average daily demand x average lead time in days) + safety stock
111. If Firm X changes the depreciation from VND 500 million to VND 700 million and other
conditions are kept unchanged. How much is tax gain at the corporate income tax 20%?
→40 million
Formula:
Depreciation expense xTax rate =Tax Gain
112. Which of the following will increase the operating cycle?
I. Increasing the inventory turnover rate
II. Increasing the payables period
I. Decreasing the receivable turnover rate
IV. Decreasing the inventory level
→ III only