Question 1
A company has a current ratio of 0.8. What does this most directly indicate?
Correct Answer:
Its current liabilities exceed its current assets
Question 2
The present value of SAR 1,000 receivable in one year, discounted at 10%, is closest to:
Correct Answer:
SAR 909
Question 3
Net present value (NPV) of a project is best defined as:
Correct Answer:
The present value of cash inflows minus the present value of cash outflows
Question 4
Under standard investment-appraisal rules, a project should be accepted on a stand-alone basis when its:
Correct Answer:
NPV is positive
Question 5
The internal rate of return (IRR) is the discount rate at which a project's:
Correct Answer:
NPV equals zero
Question 1
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About this Exam

Prepare with the CME-5A Practice Questions - Corporate Finance Technical Foundations (Saudi CMA CME-5A) Exam practice quiz. This question bank includes 100 questions covering company, value, equity, cash, and ratio. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CME-5A Practice Questions - Corporate Finance Technical Foundations (Saudi CMA CME-5A) Exam

This practice set contains 100 questions from the matching question bank and focuses on company, value, equity, cash, and ratio. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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