CII M05 Q&A - in .pdf

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NEW QUESTION: 1
HOTSPOT
You need to insert code at line CP15 to retrieve the account balance for a user.
How should you complete the relevant code? To answer, select the appropriate code segment from each list in the answer area.

Answer:
Explanation:


NEW QUESTION: 2
DRAG DROP

Answer:
Explanation:


NEW QUESTION: 3
When a firm finances each asset with a financial instrument of the same approximate maturity as the life
of the asset, it is applying:
A. Return maximization.
B. Financial leverage.
C. Working capital management.
D. Operating leverage.
Answer: C
Explanation:
Choice "a" is correct. Appropriate working capital management matches the maturity life of each asset
with the length of the financial instrument used to finance that asset.
Choice "b" is incorrect. Return maximization seeks to obtain the optimal return rate by asset utilization. It
is not necessarily related to the maturity of the asset.
Choice "c" is incorrect. Financial leverage is the amount of debt used to finance an asset. Higher leverage
equals more debt. It is unrelated to the maturity life of an asset.
Choice "d" is incorrect. Operating leverage is the degree that fixed costs are used in the production
process. Operating leverage is unrelated to the methods used to finance assets.

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