Question 1

Explain the role the operating budget,the capital budget,and the cash budget play in financial planning.

Accepted Answer

An operating budget is the projection of

Question 2

The first step in the financial planning process is:

Accepted Answer

A) establishing financial control. 
B) preparing financial statements. 
C) developing budgets. 
D) forecasting financial needs. 
A) establishing financial control. 
B) preparing financial statements. 
C) developing budgets. 
D) forecasting financial needs.

Question 3

Financial managers are responsible for accounts receivable and accounts payable management.

Accepted Answer

A) True 
 B)False

Question 4

One step in the financial planning process is to establish control procedures that allow managers to monitor the organization's performance.

Accepted Answer

A) True 
 B)False

Question 5

The overall objective of financial planning is to:

Accepted Answer

A) prepare financial statements for managers. 
B) optimize the firm's profitability. 
C) forecast the impact of technological trends. 
D) establish budgets for financial control. 
A) prepare financial statements for managers. 
B) optimize the firm's profitability. 
C) forecast the impact of technological trends. 
D) establish budgets for financial control.

Question 6

An effective strategy to manage cash flows requires retail businesses to eliminate their inventory.

Accepted Answer

A) True 
 B)False

Question 7

A comptroller is responsible for the acquiring and managing of funds for an organization.

Accepted Answer

A) True 
 B)False

Question 8

Capstone Financial Services is considering the purchase and installation of an expensive computer network.This is the type of expenditure that would be included in a(n):

Accepted Answer

A) capital budget. 
B) asset budget. 
C) cash budget. 
D) operating budget. 
A) capital budget. 
B) asset budget. 
C) cash budget. 
D) operating budget.

Question 9

Owners of ______shares do not get a vote but stockholders do receive dividends.

Accepted Answer

A) uncommon 
B) preferred 
C) blue-chip 
D) common 
A) uncommon 
B) preferred 
C) blue-chip 
D) common

Question 10

By purchasing stock in Entertainment Today,Veronica has become a(n)______the company.

Accepted Answer

A) creditor of 
B) general partner of 
C) owner in 
D) venture capitalist in 
A) creditor of 
B) general partner of 
C) owner in 
D) venture capitalist in

Question 11

Business organizations exclusively use long-term financing for their short-term and long-term needs.

Accepted Answer

A) True 
 B)False

Question 12

Debt financing refers to funds acquired from the profitable operations of a firm or through the sale of ownership in the firm.

Accepted Answer

A) True 
 B)False

Question 13

The importance of financial managers to firms with large inflows is greater than for firms with smaller cash flows.

Accepted Answer

A) True 
 B)False

Question 14

The most widely used source of short-term funding is trade credit.

Accepted Answer

A) True 
 B)False

Question 15

The terms 2/10,net 30 indicate that the seller is offering a 10% discount for early payment.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following represents a source of short-term funding?

Accepted Answer

A) Common stock 
B) Corporate bonds 
C) Retained earnings 
D) Commercial paper 
A) Common stock 
B) Corporate bonds 
C) Retained earnings 
D) Commercial paper

Question 17

Factoring represents the least expensive way for a firm to raise short-term funds.

Accepted Answer

A) True 
 B)False

Question 18

By selling shares of ownership in their company,Ottawa Scientific acquires the funds needed to finance their research and development projects.Ottawa Scientific provides for their long-term funding needs through______ financing.

Accepted Answer

A) retained 
B) asset 
C) equity 
D) debt 
A) retained 
B) asset 
C) equity 
D) debt

Question 19

Which of the following would not normally involve long-term financing?

Accepted Answer

A) Worker's salaries 
B) Purchase of modern equipment 
C) Plant expansion 
D) Purchase of a large tract of land 
A) Worker's salaries 
B) Purchase of modern equipment 
C) Plant expansion 
D) Purchase of a large tract of land

Question 20

Corporations that issue stock to raise long-term funds accept the legal obligation to repay the amount borrowed.

Accepted Answer

A) True 
 B)False

Explain the role the operating budget,the capital budget,and the cash budget play in financial planning.

The first step in the financial planning process is:

Financial managers are responsible for accounts receivable and accounts payable management.

One step in the financial planning process is to establish control procedures that allow managers to monitor the organization's performance.

The overall objective of financial planning is to:

An effective strategy to manage cash flows requires retail businesses to eliminate their inventory.

A comptroller is responsible for the acquiring and managing of funds for an organization.

Capstone Financial Services is considering the purchase and installation of an expensive computer network.This is the type of expenditure that would be included in a(n):

Owners of ______shares do not get a vote but stockholders do receive dividends.

By purchasing stock in Entertainment Today,Veronica has become a(n)______the company.

Business organizations exclusively use long-term financing for their short-term and long-term needs.

Debt financing refers to funds acquired from the profitable operations of a firm or through the sale of ownership in the firm.

The importance of financial managers to firms with large inflows is greater than for firms with smaller cash flows.

The most widely used source of short-term funding is trade credit.

The terms 2/10,net 30 indicate that the seller is offering a 10% discount for early payment.

Which of the following represents a source of short-term funding?

Factoring represents the least expensive way for a firm to raise short-term funds.

By selling shares of ownership in their company,Ottawa Scientific acquires the funds needed to finance their research and development projects.Ottawa Scientific provides for their long-term funding needs through______ financing.

Which of the following would not normally involve long-term financing?

Corporations that issue stock to raise long-term funds accept the legal obligation to repay the amount borrowed.

The Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business Appendix a Working Within the Legal Environment of Business

Ethics and Social Responsibility

Forms of Business Ownership

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemdashmanagement Issues and Relations

Marketing: Helping Buyers Buy

Managing the Marketing Mix: Product, Price, Place, and Promotion

Understanding Accounting and Financial Information

The Financial Services Industry in Canada

Filters

Exam 17: Financial Management Appendix C Managing Risk

Explain the role the operating budget,the capital budget,and the cash budget play in financial planning.

The first step in the financial planning process is:

Financial managers are responsible for accounts receivable and accounts payable management.

One step in the financial planning process is to establish control procedures that allow managers to monitor the organization's performance.

The overall objective of financial planning is to:

An effective strategy to manage cash flows requires retail businesses to eliminate their inventory.

A comptroller is responsible for the acquiring and managing of funds for an organization.

Capstone Financial Services is considering the purchase and installation of an expensive computer network.This is the type of expenditure that would be included in a(n):

Owners of ______shares do not get a vote but stockholders do receive dividends.

By purchasing stock in Entertainment Today,Veronica has become a(n)______the company.

Business organizations exclusively use long-term financing for their short-term and long-term needs.

Debt financing refers to funds acquired from the profitable operations of a firm or through the sale of ownership in the firm.

The importance of financial managers to firms with large inflows is greater than for firms with smaller cash flows.

The most widely used source of short-term funding is trade credit.

The terms 2/10,net 30 indicate that the seller is offering a 10% discount for early payment.

Which of the following represents a source of short-term funding?

Factoring represents the least expensive way for a firm to raise short-term funds.

By selling shares of ownership in their company,Ottawa Scientific acquires the funds needed to finance their research and development projects.Ottawa Scientific provides for their long-term funding needs through______ financing.

Which of the following would not normally involve long-term financing?

Corporations that issue stock to raise long-term funds accept the legal obligation to repay the amount borrowed.

The Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business Appendix a Working Within the Legal Environment of Business

Ethics and Social Responsibility

Forms of Business Ownership

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemdashmanagement Issues and Relations

Marketing: Helping Buyers Buy

Managing the Marketing Mix: Product, Price, Place, and Promotion

Understanding Accounting and Financial Information

The Financial Services Industry in Canada

Filters