Question

I'm looking for a practice test in multiple-choice questions format based on the textbook named: "Fundamentals of Financial management? Can you provide direction on how am I going to so? I'm looking for a practice test for:

Chapter one - An Overview of Finance Management,

Chapter two - Financial Markets and Institutions.

Chapter three - Financial Statements, Cash Flow, and Taxes

Chapter four - Analysis of Financial Statements

Chapter five - Time Value of Money

Chapter eight - Risk and Rates of Return

Chapter eleven - The Basics of Captial Budgeting

Thank you in advance for your support.

Answer 1

The order in which you do the chapters is very important here.

Step 1. Chapter 1 and Chapter 2 are theoretical. I would suggest you do a surface reading to get a broader idea of things. However, do not expect to be able to grasp it all in a single read. You must read it atleast twice. But the second reading should be after you have dived into the practical concepts of financial management because it will give you a deeper understanding after having known these concepts.

Step 2: Time value of money is the heart of any concept in Financial management. so after giving one read to theory chapters, start with Chapter - 5 TVM. You cannot master concepts of Capital budgeting/ Risk and Rate of return unless you do TVM.

Step 3 After TVM, Do first Risk and Return i.e., Chapter 8, then Financial Statements, Cash Flow, and Taxes because both these chapter knowledge will be applied in Chapter 11 The Basics of Capital Budgeting.

Step 4: towards the end, do Chapter four - Analysis of Financial Statements as it gives holistic view of entire Financial management concept. also you can analyse FS only once you have known FM conepts.

Step 5: Towards the end pick the two theoretical chapters again and now read them in a way to be able to retain the concepts so you should be able to write them well. Practice writing answers in points to score well on the exam.

All the best!