In a strong efficient market, the finance manager will

• A.maximise the net present value of the firm's investments.
• B.analyse historical data on takeover targets.
• C.develop strategies to disclose the company's profit or loss.
• D.employ analysts to determine the best time to issue shares.

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Which one of the following methods is not used for 'creative accounting'?

• A.aggressive debt management
• B.off balance sheet financing
• C.window dressing
• D.profit smoothing

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Published financial statements are regulated by

• A.rules to ensure the provision of consistent financial information to investors.
• B.International Financial Reporting Standards to ensure the provision of useful financial information to shareholders.
• C.accounting and legal rules to ensure the provision of relevant and reliable financial information to shareholders.
• D.shareholders who specify the framework for the provision of consistent and comparable financial information for decision-making.

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Which one of the following is a benefit of developing financial reporting standards using a conceptual framework?

• A.The financial statements based on these standards would be error-free.
• B.The interpretation of financial reporting standards by anybody would be easy.
• C.The interpretation of non-financial information is made easier.
• D.A financial reporting environment based on standardised principles would be created.

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Which form of capital market efficiency exists when share prices on the stock market reflect all information whether public or not?

• A.strong form efficiency
• B.allocative efficiency
• C.semi-strong form efficiency
• D.information processing efficiency

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