Theory Questions 2 FM

Subject: Financial Management Topic: Theory Questions-Set 2 By: Questionscastle Academic Team Document Code: CA/IPCC/FM/0002

Chapters Covered • • •

Cash Flow and Fund Flow Statement Short, Medium and Long Term Sources of Finance Time Value of Money

Cash Flow Statement and Fund Flow Statement Q 1. Distinguish between Cash Flow Statement and Fund Flow Statement. (CA PE II Nov 2002, May 2004) Short, Medium and Long Term Sources of Finance Q 1. Explain the importance of trade credit and accruals as source of working capital. What is the cost of these sources? (CA PE II May 2003) Q 2. Explain the concept of closed and open ended lease. (CA PCC May 2008) Q 3. Discuss the advantages of raising funds by issue of equity shares. (CA PE II June 2009) Q 4. Discuss the features of deep discount bonds. (CA PCC Nov 2007, PCC Nov 2008, PE II Nov 2009) Q 5. Explain briefly the features of External Commercial Borrowings (ECB). (CA PCC May 2008) Q 6. Name the various financial instruments dealt with in the international market. (CA PCC Nov 2008, CA PE II June 2009) Q 7. Write short note on ‘Floating Rate Bonds’. (CA PE II Nov 2009) Q 8. Write short note on ‘Global Depository Receipts’. (CA Final May 1996 May 1998, PE II May 2003 May 2004, PE II May 2008) Q 9. Write short note on ‘American Depository Receipts’. (CA PE II May 2003, May 2004, May 2006, May 2008, PCC June 2009) Q 10. Write short note on ‘Debt Securitization’. (CA PE II May 2006, PCC May 2008) Q 11. Discuss the need for social cost benefit analysis. (CA PE II May 2003, Nov 2006) Q 12. Discuss the features of Secured Premium Notes (SPNs). (CA PCC May 2008) Time Value of Money Q 1. Explain the relevance of time value of money in financial decisions. (CA PCC May 2008)

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