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CPA FIN Exam With Confidence Using Practice Dumps

Exam Code:
FIN
Exam Name:
Finance
Certification:
Vendor:
Questions:
80
Last Updated:
Apr 30, 2025
Exam Status:
Stable
CPA FIN

FIN: CPA Other Certification Exam 2025 Study Guide Pdf and Test Engine

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Finance Questions and Answers

Question 1

A business holds an inventory item with an economic order quantity of 800 units. Supply lead times and usage rates for the item are as follows:

MaximumAverageMinimum

Supply lead time20 days12 days6 days

Daily usage25 units20 units10 units

The business wishes to avoid any risk of running out of this inventory item.

What is the size of the buffer inventory (using average figures) and the maximum level of inventory?

Options:

A.

Average size of buffer inventory 260 units, Maximum level of inventory 1,240 units

B.

Average size of buffer inventory 260 units, Maximum level of inventory 740 units

C.

Average size of buffer inventory 560 units, Maximum level of inventory 1,240 units

D.

Average size of buffer inventory 560 units, Maximum level of inventory 740 units

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Question 2

Pecking order theory states that, when financing new investment opportunities, a business will prefer to use:

1. Internal finance rather than external finance.

2. Equity rather than debt.

Which ONE of the following combinations (true/false) concerning the above statements is correct?

Options:

A.

Statement 1 = True, Statement 2 = True

B.

Statement 1 = True, Statement 2 = False

C.

Statement 1 = False, Statement 2 = True

D.

Statement 1 = False, Statement 2 = False

Question 3

Better Inc, a US-based company, expects to receive €800,000 in two months’ time for consultancy services provided to the Austrian government. It wishes to be certain of the amount to be received and will use the derivatives market to achieve this.

Which one of the following actions should the company take NOW to hedge the risk?

Options:

A.

Buy Euro futures

B.

Buy US dollar options

C.

Sell Euro futures

D.

Sell US dollar futures