ACCA Applied Skills Practice Questions — All Questions

← Back to practice Read the ACCA Applied Skills Practice Questions study guide →

All Financial Accounting Management Accounting Financial Reporting (IFRS)Audit & Assurance Financial Management

3 questions

Financial Management

Working capital is defined as:

a.Non-current assets
b.Current assets minus current liabilities✓
c.Total equity
d.Long-term debt

Working capital = current assets - current liabilities.

Financial Management

Under the NPV investment rule, a project is accepted if its NPV is:

a.Positive✓
b.Negative
c.Zero always rejected
d.Equal to the payback

Positive-NPV projects increase shareholder value.

Financial Management

Discounting future cash flows reflects the principle that:

a.Cash never changes value
b.Inflation is irrelevant
c.Money has time value✓
d.Profits equal cash

Discounting applies the time value of money to future cash flows.