Question 1

Managerial finance

Accepted Answer

A)  involves tasks such as budgeting, financial forecasting, cash management, and funds procurement. 
B)  involves the design and delivery of advice and financial products. 
C)  recognizes funds on an accrual basis. 
D)  devotes the majority of its attention to the collection and presentation of financial data. 
A)  involves tasks such as budgeting, financial forecasting, cash management, and funds procurement. 
B)  involves the design and delivery of advice and financial products. 
C)  recognizes funds on an accrual basis. 
D)  devotes the majority of its attention to the collection and presentation of financial data.

Question 2

When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that are expected to maximize shareholder value.

Accepted Answer

A) True 
 B)False

Question 3

The key activities of the financial manager include all of the following EXCEPT

Accepted Answer

A)  making financing decisions. 
B)  financial analysis and planning. 
C)  managing financial accounting. 
D)  making investment decisions. 
A)  making financing decisions. 
B)  financial analysis and planning. 
C)  managing financial accounting. 
D)  making investment decisions.

Question 4

The financial manager's investment decisions determine

Accepted Answer

A)  both the mix and the type of assets found on the firm's balance sheet. 
B)  both the mix and the type of liabilities found on the firm's balance sheet. 
C)  both the mix and the type of assets and liabilities found on the firm's balance sheet. 
D)  both the mix and the type of short-term and long-term financing. 
A)  both the mix and the type of assets found on the firm's balance sheet. 
B)  both the mix and the type of liabilities found on the firm's balance sheet. 
C)  both the mix and the type of assets and liabilities found on the firm's balance sheet. 
D)  both the mix and the type of short-term and long-term financing.

Question 5

The controller is commonly responsible for

Accepted Answer

A)  managing cash. 
B)  financial accounting. 
C)  managing credit activities. 
D)  financial planning. 
A)  managing cash. 
B)  financial accounting. 
C)  managing credit activities. 
D)  financial planning.

Question 6

A firm has just ended its calendar year making a sale in the amount of $200,000 of merchandise purchased during the year at a total cost of $150,500. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. The possible problem this firm may face is

Accepted Answer

A)  low profitability. 
B)  lack of cash flow. 
C)  inability to receive credit. 
D)  high leverage. 
A)  low profitability. 
B)  lack of cash flow. 
C)  inability to receive credit. 
D)  high leverage.

Question 7

Profit maximization as the goal of the firm is not ideal because

Accepted Answer

A)  profits are only accounting measures. 
B)  cash flows are more representative of financial strength. 
C)  profit maximization does not consider risk. 
D)  profits today are less desirable than profits earned in future years. 
A)  profits are only accounting measures. 
B)  cash flows are more representative of financial strength. 
C)  profit maximization does not consider risk. 
D)  profits today are less desirable than profits earned in future years.

Question 8

The corporate treasurer typically handles the both cost accounting and financial accounting.

Accepted Answer

A) True 
 B)False

Question 9

The corporate controller is the officer responsible for the firm's financial activities such as financial planning and fund raising, making capital expenditure decisions, and managing cash, credit, the pension fund, and foreign exchange.

Accepted Answer

A) True 
 B)False

Question 10

A more recent issue that is causing major problems in the business community is

Accepted Answer

A)  the privatization of ownership. 
B)  short-term versus long-term financial goals of management. 
C)  ethical problems. 
D)  environmental concerns. 
A)  the privatization of ownership. 
B)  short-term versus long-term financial goals of management. 
C)  ethical problems. 
D)  environmental concerns.

Question 11

Financial managers actively manage the financial affairs of many types of business-financial and non-financial, private and public, for-profit and not-for-profit.

Accepted Answer

A) True 
 B)False

Question 12

The agency problem may result from a manager's concerns about any of the following EXCEPT

Accepted Answer

A)  job security. 
B)  personal wealth. 
C)  corporate goals. 
D)  company-provided perquisites. 
A)  job security. 
B)  personal wealth. 
C)  corporate goals. 
D)  company-provided perquisites.

Question 13

Which of the following is a career opportunity in managerial finance?

Accepted Answer

A)  Investment. 
B)  Real Estate and Insurance. 
C)  Capital Expenditures Management. 
D)  Personal Financial Planning. 
A)  Investment. 
B)  Real Estate and Insurance. 
C)  Capital Expenditures Management. 
D)  Personal Financial Planning.

Question 14

Financing decisions deal with the left-hand side of the firm's balance sheet and involve the most appropriate mix of current and fixed assets.

Accepted Answer

A) True 
 B)False

Question 15

The Sarbanes-Oxley Act of 2002 was passed in response to

Accepted Answer

A)  insider trading activities. 
B)  false disclosures in financial reporting. 
C)  the decline in technology stocks. 
D)  all of the above. 
A)  insider trading activities. 
B)  false disclosures in financial reporting. 
C)  the decline in technology stocks. 
D)  all of the above.

Question 16

A firm has just ended its calendar year making a sale in the amount of $150,000 of merchandise purchased during the year at a total cost of $112,500. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. The net profit and cash flow from this sale for the year are

Accepted Answer

A)  $0 and $150,000, respectively. 
B)  $37,500 and -$150,000, respectively. 
C)  $37,500 and -$112,500, respectively. 
D)  $150,000 and $112,500, respectively. 
A)  $0 and $150,000, respectively. 
B)  $37,500 and -$150,000, respectively. 
C)  $37,500 and -$112,500, respectively. 
D)  $150,000 and $112,500, respectively.

Question 17

The primary economic principle used in managerial finance is

Accepted Answer

A)  supply and demand. 
B)  the liquidity trap. 
C)  the crowding out effect. 
D)  marginal cost-benefit analysis. 
A)  supply and demand. 
B)  the liquidity trap. 
C)  the crowding out effect. 
D)  marginal cost-benefit analysis.

Question 18

Agency costs include all of the following EXCEPT

Accepted Answer

A)  management reports to stockholders. 
B)  performance incentives paid to managers. 
C)  the cost of monitoring management behavior. 
D)  purchasing insurance against management misconduct. 
A)  management reports to stockholders. 
B)  performance incentives paid to managers. 
C)  the cost of monitoring management behavior. 
D)  purchasing insurance against management misconduct.

Question 19

Making financing decisions includes all of the following EXCEPT

Accepted Answer

A)  determining the appropriate mix of short-term and long-term financing. 
B)  deciding which individual short-term sources are best at a given point in time. 
C)  analyzing quarterly budget and performance reports. 
D)  deciding which individual long-term sources are best at a given point in time. 
A)  determining the appropriate mix of short-term and long-term financing. 
B)  deciding which individual short-term sources are best at a given point in time. 
C)  analyzing quarterly budget and performance reports. 
D)  deciding which individual long-term sources are best at a given point in time.

Question 20

The goal of ethics is to motivate business and market participants to adhere to both the letter and the spirit of laws and regulations in all aspects of business and professional practice.

Accepted Answer

A) True 
 B)False

Managerial finance

When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that are expected to maximize shareholder value.

The key activities of the financial manager include all of the following EXCEPT

The financial manager's investment decisions determine

The controller is commonly responsible for

Profit maximization as the goal of the firm is not ideal because

The corporate treasurer typically handles the both cost accounting and financial accounting.

The corporate controller is the officer responsible for the firm's financial activities such as financial planning and fund raising, making capital expenditure decisions, and managing cash, credit, the pension fund, and foreign exchange.

A more recent issue that is causing major problems in the business community is

Financial managers actively manage the financial affairs of many types of business-financial and non-financial, private and public, for-profit and not-for-profit.

The agency problem may result from a manager's concerns about any of the following EXCEPT

Which of the following is a career opportunity in managerial finance?

Financing decisions deal with the left-hand side of the firm's balance sheet and involve the most appropriate mix of current and fixed assets.

The Sarbanes-Oxley Act of 2002 was passed in response to

The primary economic principle used in managerial finance is

Agency costs include all of the following EXCEPT

Making financing decisions includes all of the following EXCEPT

The goal of ethics is to motivate business and market participants to adhere to both the letter and the spirit of laws and regulations in all aspects of business and professional practice.

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

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Exam 1: The Role of Managerial Finance

Managerial finance

When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that are expected to maximize shareholder value.

The key activities of the financial manager include all of the following EXCEPT

The financial manager's investment decisions determine

The controller is commonly responsible for

Profit maximization as the goal of the firm is not ideal because

The corporate treasurer typically handles the both cost accounting and financial accounting.

The corporate controller is the officer responsible for the firm's financial activities such as financial planning and fund raising, making capital expenditure decisions, and managing cash, credit, the pension fund, and foreign exchange.

A more recent issue that is causing major problems in the business community is

Financial managers actively manage the financial affairs of many types of business-financial and non-financial, private and public, for-profit and not-for-profit.

The agency problem may result from a manager's concerns about any of the following EXCEPT

Which of the following is a career opportunity in managerial finance?

Financing decisions deal with the left-hand side of the firm's balance sheet and involve the most appropriate mix of current and fixed assets.

The Sarbanes-Oxley Act of 2002 was passed in response to

The primary economic principle used in managerial finance is

Agency costs include all of the following EXCEPT

Making financing decisions includes all of the following EXCEPT

The goal of ethics is to motivate business and market participants to adhere to both the letter and the spirit of laws and regulations in all aspects of business and professional practice.

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