Question 1

The ________ has/have the ultimate responsibility in guiding corporate affairs and carrying out policies.

Accepted Answer

A)  board of directors 
B)  chief executive officer 
C)  stockholders 
D)  creditors 
A)  board of directors 
B)  chief executive officer 
C)  stockholders 
D)  creditors

Question 2

The agency problem occurs when the firm selects an ineffective marketing advertising and PR firm to represent them.

Accepted Answer

A) True 
 B)False

Question 3

In a(n) ________, owners have limited liability with regard to the business. They are not personally liable for the malpractice of other owners.

Accepted Answer

A)  limited partnership 
B)  S-corporation 
C)  partnership 
D)  limited liability partnership 
A)  limited partnership 
B)  S-corporation 
C)  partnership 
D)  limited liability partnership

Question 4

Institutional investors are professional investors who work on behalf of the federal government to ensure fairness in the financial markets.

Accepted Answer

A) True 
 B)False

Question 5

The amount earned during the accounting period on each outstanding share of common stock is called

Accepted Answer

A)  common stock dividend. 
B)  earnings per share. 
C)  net profits after taxes. 
D)  net income. 
A)  common stock dividend. 
B)  earnings per share. 
C)  net profits after taxes. 
D)  net income.

Question 6

An ethics program is expected to have a ________ impact on the firm's share price.

Accepted Answer

A)  positive 
B)  negative 
C)  no impact 
D)  undetermined 
A)  positive 
B)  negative 
C)  no impact 
D)  undetermined

Question 7

Economic theories that the financial manager must be able to utilize for efficient business operations, include

Accepted Answer

A)  supply-and-demand analysis. 
B)  marginal analysis. 
C)  profit-maximizing strategies. 
D)  price theory. 
E)  all of the above. 
A)  supply-and-demand analysis. 
B)  marginal analysis. 
C)  profit-maximizing strategies. 
D)  price theory. 
E)  all of the above.

Question 8

The goal of profit maximization would result in priority for

Accepted Answer

A)  cash flows available to stockholders. 
B)  risk of the investment. 
C)  earnings per share. 
D)  timing of the returns. 
A)  cash flows available to stockholders. 
B)  risk of the investment. 
C)  earnings per share. 
D)  timing of the returns.

Question 9

Using certain standardized and generally accepted principles, the accountant prepares financial statements that recognize revenue at the point of sale and expenses when incurred.

Accepted Answer

A) True 
 B)False

Question 10

The key variables in the owner wealth maximization process are

Accepted Answer

A)  earnings per share and risk. 
B)  cash flows and risk. 
C)  earnings per share and share price. 
D)  profits and risk. 
A)  earnings per share and risk. 
B)  cash flows and risk. 
C)  earnings per share and share price. 
D)  profits and risk.

Question 11

The financial analyst administers the firm's credit policy by analyzing or managing the evaluation of credit applications, extending credit, and monitoring and collecting accounts receivable.

Accepted Answer

A) True 
 B)False

Question 12

The primary emphasis of the financial manager is the use of

Accepted Answer

A)  accrued earnings. 
B)  cash flow. 
C)  organization charts. 
D)  profit incentives. 
A)  accrued earnings. 
B)  cash flow. 
C)  organization charts. 
D)  profit incentives.

Question 13

Financial services are concerned with the duties of the financial manager.

Accepted Answer

A) True 
 B)False

Question 14

Managing the firm's liabilities includes all of the following EXCEPT

Accepted Answer

A)  accruals. 
B)  notes payable. 
C)  cash. 
D)  accounts payable. 
A)  accruals. 
B)  notes payable. 
C)  cash. 
D)  accounts payable.

Question 15

The board of directors is typically responsible for

Accepted Answer

A)  developing strategic goals and plans. 
B)  hiring and firing. 
C)  both A and B. 
D)  neither A nor B. 
A)  developing strategic goals and plans. 
B)  hiring and firing. 
C)  both A and B. 
D)  neither A nor B.

Question 16

The corporate treasurer's focus tends to be more external, while the controller's focus is more internal.

Accepted Answer

A) True 
 B)False

Question 17

Finance is concerned with the process institutions, markets, and instruments involved in the transfer of money among and between individuals, businesses and government.

Accepted Answer

A) True 
 B)False

Question 18

The financial manager recognizes revenues and expenses utilizing

Accepted Answer

A)  the accrual method. 
B)  the actual inflows and outflows of cash. 
C)  the standardized, generally accepted, accounting principles. 
D)  the revenue method. 
A)  the accrual method. 
B)  the actual inflows and outflows of cash. 
C)  the standardized, generally accepted, accounting principles. 
D)  the revenue method.

Question 19

A financial analyst is responsible for maintaining and controlling the firm's daily cash balances. Frequently manages the firm's short-term investments and coordinates short-term borrowing and banking relationships.

Accepted Answer

A) True 
 B)False

Question 20

Most recent studies on executive compensation have failed to find a strong relationship between CEO compensation and share price.

Accepted Answer

A) True 
 B)False

The ________ has/have the ultimate responsibility in guiding corporate affairs and carrying out policies.

The agency problem occurs when the firm selects an ineffective marketing advertising and PR firm to represent them.

In a(n) ________, owners have limited liability with regard to the business. They are not personally liable for the malpractice of other owners.

Institutional investors are professional investors who work on behalf of the federal government to ensure fairness in the financial markets.

The amount earned during the accounting period on each outstanding share of common stock is called

An ethics program is expected to have a ________ impact on the firm's share price.

Economic theories that the financial manager must be able to utilize for efficient business operations, include

The goal of profit maximization would result in priority for

Using certain standardized and generally accepted principles, the accountant prepares financial statements that recognize revenue at the point of sale and expenses when incurred.

The key variables in the owner wealth maximization process are

The financial analyst administers the firm's credit policy by analyzing or managing the evaluation of credit applications, extending credit, and monitoring and collecting accounts receivable.

The primary emphasis of the financial manager is the use of

Financial services are concerned with the duties of the financial manager.

Managing the firm's liabilities includes all of the following EXCEPT

The board of directors is typically responsible for

The corporate treasurer's focus tends to be more external, while the controller's focus is more internal.

Finance is concerned with the process institutions, markets, and instruments involved in the transfer of money among and between individuals, businesses and government.

The financial manager recognizes revenues and expenses utilizing

A financial analyst is responsible for maintaining and controlling the firm's daily cash balances. Frequently manages the firm's short-term investments and coordinates short-term borrowing and banking relationships.

Most recent studies on executive compensation have failed to find a strong relationship between CEO compensation and share price.

The Financial Market Environment

Financial Statements and Ratio Analysis

Cash Flow and Financial Planning

Time Value of Money

Interest Rates and Bond Valuation

Stock Valuation

Risk and Return

The Cost of Capital

Capital Budgeting Techniques

Capital Budgeting Cash Flows

Risk and Refinements in Capital Budgeting

Leverage and Capital Structure

Payout Policy

Working Capital and Current Assets Management

Current Liabilities Management

Hybrid and Derivative Securities

Mergers, Lbos, Divestitures, and Business Failure

International Managerial Finance

Filters

Exam 1: The Role of Managerial Finance

The ________ has/have the ultimate responsibility in guiding corporate affairs and carrying out policies.

The agency problem occurs when the firm selects an ineffective marketing advertising and PR firm to represent them.

In a(n) ________, owners have limited liability with regard to the business. They are not personally liable for the malpractice of other owners.

Institutional investors are professional investors who work on behalf of the federal government to ensure fairness in the financial markets.

The amount earned during the accounting period on each outstanding share of common stock is called

An ethics program is expected to have a ________ impact on the firm's share price.

Economic theories that the financial manager must be able to utilize for efficient business operations, include

The goal of profit maximization would result in priority for

Using certain standardized and generally accepted principles, the accountant prepares financial statements that recognize revenue at the point of sale and expenses when incurred.

The key variables in the owner wealth maximization process are

The financial analyst administers the firm's credit policy by analyzing or managing the evaluation of credit applications, extending credit, and monitoring and collecting accounts receivable.

The primary emphasis of the financial manager is the use of

Financial services are concerned with the duties of the financial manager.

Managing the firm's liabilities includes all of the following EXCEPT

The board of directors is typically responsible for

The corporate treasurer's focus tends to be more external, while the controller's focus is more internal.

Finance is concerned with the process institutions, markets, and instruments involved in the transfer of money among and between individuals, businesses and government.

The financial manager recognizes revenues and expenses utilizing

A financial analyst is responsible for maintaining and controlling the firm's daily cash balances. Frequently manages the firm's short-term investments and coordinates short-term borrowing and banking relationships.

Most recent studies on executive compensation have failed to find a strong relationship between CEO compensation and share price.

The Financial Market Environment

Financial Statements and Ratio Analysis

Cash Flow and Financial Planning

Time Value of Money

Interest Rates and Bond Valuation

Stock Valuation

Risk and Return

The Cost of Capital

Capital Budgeting Techniques

Capital Budgeting Cash Flows

Risk and Refinements in Capital Budgeting

Leverage and Capital Structure

Payout Policy

Working Capital and Current Assets Management

Current Liabilities Management

Hybrid and Derivative Securities

Mergers, Lbos, Divestitures, and Business Failure

International Managerial Finance

Filters