Question 1

Nicole is a financial manager.Her responsibilities include all of the following except preparing:

Accepted Answer

A) for the expenditure of funds. 
B) financial statements. 
C) for the acquisition of funds. 
D) a cash flow analysis. 
A) for the expenditure of funds. 
B) financial statements. 
C) for the acquisition of funds. 
D) a cash flow analysis.

Question 2

Clark,president of Cycles Go Go,worries that cash flows may be insufficient to pay his current operating expenses.While he anticipates a surplus of cash inflows as warm weather approaches,he needs to borrow funds now to meet his immediate obligations.Clark can best resolve his cash flow concerns by obtaining______ financing.

Accepted Answer

A) contingency 
B) long-term 
C) intermediate 
D) short-term 
A) contingency 
B) long-term 
C) intermediate 
D) short-term

Question 3

A bond represents a long-term debt obligation of a corporation or government.

Accepted Answer

A) True 
 B)False

Question 4

Much of a financial manager's day-to-day activities are involved in managing the short-term financial needs of the firm.

Accepted Answer

A) True 
 B)False

Question 5

Which of these statements about corporate bonds is correct?

Accepted Answer

A) Interest paid to bondholders represents a tax deductible business expense. 
B) Bonds provide equity financing. 
C) Issuing new bonds dilutes the existing ownership in the firm. 
D) Debenture bonds require assets pledged as collateral. 
A) Interest paid to bondholders represents a tax deductible business expense. 
B) Bonds provide equity financing. 
C) Issuing new bonds dilutes the existing ownership in the firm. 
D) Debenture bonds require assets pledged as collateral.

Question 6

The financial manager of a company is responsible for managing cash,budgets,accounts receivable,and managing taxes.

Accepted Answer

A) True 
 B)False

Question 7

Venture capital firms look to invest their funds in firms that:

Accepted Answer

A) require extra funding to avoid financial difficulties. 
B) are new with great profit potential. 
C) present financial statements indicating stronger than average cash flows. 
D) operate in established,mature industries. 
A) require extra funding to avoid financial difficulties. 
B) are new with great profit potential. 
C) present financial statements indicating stronger than average cash flows. 
D) operate in established,mature industries.

Question 8

A(n)______is responsible for verifying that the accounting procedures within a firm are consistent with established accounting principles.

Accepted Answer

A) managerial accountant 
B) internal auditor 
C) tax accountant 
D) bookkeeper 
A) managerial accountant 
B) internal auditor 
C) tax accountant 
D) bookkeeper

Question 9

How do financial managers keep current customers happy and attract new customers?

Accepted Answer

Financial managers know that m

Question 10

A debenture bond is backed only by the reputation of the issuer.

Accepted Answer

A) True 
 B)False

Question 11

With plans to build a $50 million theme park,Lakeview Enterprises intends to finance this project through the sale of additional shares of ownership in their firm.Selling new shares of stock represents______ financing.

Accepted Answer

A) equity 
B) debt 
C) initial offering 
D) retained 
A) equity 
B) debt 
C) initial offering 
D) retained

Question 12

What is the major advantage for a business to use a term-loan agreement?

Accepted Answer

The major advantage is that th

Question 13

What is equity capital? Identify and describe the major sources of this type of financing.

Accepted Answer

Equity capital represents money raised f

Question 14

Which of the following suggests that higher interest rates are charged to high risk borrowers?

Accepted Answer

A) Risk/return tradeoff 
B) Compensating balance concept 
C) Cost-benefit analysis 
D) Direct relationship principle 
A) Risk/return tradeoff 
B) Compensating balance concept 
C) Cost-benefit analysis 
D) Direct relationship principle

Question 15

A______ forecast predicts the future cash inflows and outflows.

Accepted Answer

A) cash flow 
B) money based 
C) short-term 
D) long-term 
A) cash flow 
B) money based 
C) short-term 
D) long-term

Question 16

Which of the following represents a capital expenditure?

Accepted Answer

A) Issuing paycheques to workers. 
B) Purchasing a building to be used for office space. 
C) Paying for advertising on a local radio station. 
D) Purchasing raw materials to be used in the production of a firm's product. 
A) Issuing paycheques to workers. 
B) Purchasing a building to be used for office space. 
C) Paying for advertising on a local radio station. 
D) Purchasing raw materials to be used in the production of a firm's product.

Question 17

The rate of return a company must earn in order to meet the demands of its lenders and the expectations of its equity holders is known as what?

Accepted Answer

A) cost of capital 
B) preferred stock 
C) retained earnings. 
D) debenture 
A) cost of capital 
B) preferred stock 
C) retained earnings. 
D) debenture

Question 18

In comparing the roles of accounting and finance:

Accepted Answer

A) accounting gathers information,while finance interprets this information. 
B) finance gathers information,while accounting interprets this information. 
C) they are virtually the same,as the terms can be used interchangeably. 
D) they are very different from each other,and never would have the same boss. 
A) accounting gathers information,while finance interprets this information. 
B) finance gathers information,while accounting interprets this information. 
C) they are virtually the same,as the terms can be used interchangeably. 
D) they are very different from each other,and never would have the same boss.

Question 19

Production scheduling represents one of the responsibilities of financial managers.

Accepted Answer

A) True 
 B)False

Question 20

is a source of long-term equity financing.

Accepted Answer

A) Venture capital 
B) Commercial paper 
C) A bank loan 
D) Selling bonds 
A) Venture capital 
B) Commercial paper 
C) A bank loan 
D) Selling bonds

Nicole is a financial manager.Her responsibilities include all of the following except preparing:

A bond represents a long-term debt obligation of a corporation or government.

Much of a financial manager's day-to-day activities are involved in managing the short-term financial needs of the firm.

Which of these statements about corporate bonds is correct?

The financial manager of a company is responsible for managing cash,budgets,accounts receivable,and managing taxes.

Venture capital firms look to invest their funds in firms that:

A(n)______is responsible for verifying that the accounting procedures within a firm are consistent with established accounting principles.

How do financial managers keep current customers happy and attract new customers?

A debenture bond is backed only by the reputation of the issuer.

With plans to build a $50 million theme park,Lakeview Enterprises intends to finance this project through the sale of additional shares of ownership in their firm.Selling new shares of stock represents______ financing.

What is the major advantage for a business to use a term-loan agreement?

What is equity capital? Identify and describe the major sources of this type of financing.

Which of the following suggests that higher interest rates are charged to high risk borrowers?

A______ forecast predicts the future cash inflows and outflows.

Which of the following represents a capital expenditure?

The rate of return a company must earn in order to meet the demands of its lenders and the expectations of its equity holders is known as what?

In comparing the roles of accounting and finance:

Production scheduling represents one of the responsibilities of financial managers.

is a source of long-term equity financing.

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

Nicole is a financial manager.Her responsibilities include all of the following except preparing:

A bond represents a long-term debt obligation of a corporation or government.

Much of a financial manager's day-to-day activities are involved in managing the short-term financial needs of the firm.

Which of these statements about corporate bonds is correct?

The financial manager of a company is responsible for managing cash,budgets,accounts receivable,and managing taxes.

Venture capital firms look to invest their funds in firms that:

A(n)______is responsible for verifying that the accounting procedures within a firm are consistent with established accounting principles.

How do financial managers keep current customers happy and attract new customers?

A debenture bond is backed only by the reputation of the issuer.

With plans to build a $50 million theme park,Lakeview Enterprises intends to finance this project through the sale of additional shares of ownership in their firm.Selling new shares of stock represents______ financing.

What is the major advantage for a business to use a term-loan agreement?

What is equity capital? Identify and describe the major sources of this type of financing.

Which of the following suggests that higher interest rates are charged to high risk borrowers?

A______ forecast predicts the future cash inflows and outflows.

Which of the following represents a capital expenditure?

The rate of return a company must earn in order to meet the demands of its lenders and the expectations of its equity holders is known as what?

In comparing the roles of accounting and finance:

Production scheduling represents one of the responsibilities of financial managers.

is a source of long-term equity financing.

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