Question 1

Financial service

Accepted Answer

A)  is concerned with the duties of the financial manager. 
B)  involves the design and delivery of advice and financial products. 
C)  provides guidelines for the efficient operation of the business. 
D)  handles accounting activities related to data processing. 
A)  is concerned with the duties of the financial manager. 
B)  involves the design and delivery of advice and financial products. 
C)  provides guidelines for the efficient operation of the business. 
D)  handles accounting activities related to data processing.

Question 2

The accountant's primary function is

Accepted Answer

A)  evaluating the financial statements. 
B)  making decisions based on financial data. 
C)  the collection and presentation of financial data. 
D)  planning cash flows. 
A)  evaluating the financial statements. 
B)  making decisions based on financial data. 
C)  the collection and presentation of financial data. 
D)  planning cash flows.

Question 3

The officer responsible for the firm's accounting activities, such as corporate accounting, tax management, financial accounting, and cost accounting is the

Accepted Answer

A)  treasurer. 
B)  controller. 
C)  foreign exchange manager. 
D)  none of the above. 
A)  treasurer. 
B)  controller. 
C)  foreign exchange manager. 
D)  none of the above.

Question 4

Stockholders expect to earn higher rates of return on investments of lower risk and lower rates of return on investments of higher risk.

Accepted Answer

A) True 
 B)False

Question 5

An increase in firm risk tends to result in a higher share price since the stockholder must be compensated for the greater risk.

Accepted Answer

A) True 
 B)False

Question 6

The part of finance concerned with design and delivery of advice and financial products to individuals, business, and government is called

Accepted Answer

A)  Managerial Finance. 
B)  Financial Manager. 
C)  Financial Services. 
D)  none of the above. 
A)  Managerial Finance. 
B)  Financial Manager. 
C)  Financial Services. 
D)  none of the above.

Question 7

Making investment decisions includes all of the following EXCEPT

Accepted Answer

A)  inventory. 
B)  fixed assets. 
C)  accounts receivable. 
D)  notes payable. 
A)  inventory. 
B)  fixed assets. 
C)  accounts receivable. 
D)  notes payable.

Question 8

Financial managers evaluating decision alternatives or potential actions must consider

Accepted Answer

A)  only risk. 
B)  only return. 
C)  both risk and return. 
D)  risk, return, and the impact on share price. 
A)  only risk. 
B)  only return. 
C)  both risk and return. 
D)  risk, return, and the impact on share price.

Question 9

Profit maximization as a goal is not ideal because it does NOT directly consider

Accepted Answer

A)  risk and cash flow. 
B)  cash flow and stock price. 
C)  risk and EPS. 
D)  EPS and stock price. 
A)  risk and cash flow. 
B)  cash flow and stock price. 
C)  risk and EPS. 
D)  EPS and stock price.

Question 10

The true owner(s) of the corporation is (are) the

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 11

Included in the primary activities of the financial manager are

Accepted Answer

A)  financial analysis and planning. 
B)  making investment decisions. 
C)  making financing decisions. 
D)  analyzing and planning cash flows. 
E)  all of the above. 
A)  financial analysis and planning. 
B)  making investment decisions. 
C)  making financing decisions. 
D)  analyzing and planning cash flows. 
E)  all of the above.

Question 12

The ________ is responsible for evaluating and recommending proposed asset investments.

Accepted Answer

A)  Financial Manager 
B)  Credit Manager 
C)  Pension Fund Manager 
D)  Capital Expenditures Manager 
A)  Financial Manager 
B)  Credit Manager 
C)  Pension Fund Manager 
D)  Capital Expenditures Manager

Question 13

About 75 percent of all business firms are

Accepted Answer

A)  sole proprietorships. 
B)  partnerships. 
C)  corporations. 
D)  S-corporations. 
A)  sole proprietorships. 
B)  partnerships. 
C)  corporations. 
D)  S-corporations.

Question 14

Risk and the magnitude and timing of cash flows are the key determinants of share price, which represents the wealth of the owners in the firm.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  inventory. 
B)  fixed assets. 
C)  accounts receivable. 
D)  notes payable. 
A)  inventory. 
B)  fixed assets. 
C)  accounts receivable. 
D)  notes payable.

Question 16

Cash flow and risk are the key determinants in share price. Increased risk, other things remaining the same, results in

Accepted Answer

A)  a lower share price. 
B)  a higher share price. 
C)  an unchanged share price. 
D)  an undetermined share price. 
A)  a lower share price. 
B)  a higher share price. 
C)  an unchanged share price. 
D)  an undetermined share price.

Question 17

The sole proprietor has unlimited liability; his or her total investment in the business, but not his or her personal assets, can be taken to satisfy creditors.

Accepted Answer

A) True 
 B)False

Question 18

Financial analysis and planning is concerned with analyzing the mix of assets and liabilities.

Accepted Answer

A) True 
 B)False

Question 19

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 is

Accepted Answer

A)  treasurer. 
B)  controller. 
C)  foreign exchange manager. 
D)  none of the above. 
A)  treasurer. 
B)  controller. 
C)  foreign exchange manager. 
D)  none of the above.

Question 20

An effective ethics program can have all of the following positive benefits, EXCEPT

Accepted Answer

A)  reduce potential litigation and judgment costs. 
B)  maintain a positive corporate image and build shareholder confidence. 
C)  gain the loyalty, commitment, and respect of the firm's stakeholders. 
D)  making sure violations are penalized, while at the same time not subjecting the employee to publicity. 
A)  reduce potential litigation and judgment costs. 
B)  maintain a positive corporate image and build shareholder confidence. 
C)  gain the loyalty, commitment, and respect of the firm's stakeholders. 
D)  making sure violations are penalized, while at the same time not subjecting the employee to publicity.

Financial service

The accountant's primary function is

The officer responsible for the firm's accounting activities, such as corporate accounting, tax management, financial accounting, and cost accounting is the

Stockholders expect to earn higher rates of return on investments of lower risk and lower rates of return on investments of higher risk.

An increase in firm risk tends to result in a higher share price since the stockholder must be compensated for the greater risk.

The part of finance concerned with design and delivery of advice and financial products to individuals, business, and government is called

Making investment decisions includes all of the following EXCEPT

Financial managers evaluating decision alternatives or potential actions must consider

Profit maximization as a goal is not ideal because it does NOT directly consider

The true owner(s) of the corporation is (are) the

Included in the primary activities of the financial manager are

The ________ is responsible for evaluating and recommending proposed asset investments.

About 75 percent of all business firms are

Risk and the magnitude and timing of cash flows are the key determinants of share price, which represents the wealth of the owners in the firm.

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

Cash flow and risk are the key determinants in share price. Increased risk, other things remaining the same, results in

The sole proprietor has unlimited liability; his or her total investment in the business, but not his or her personal assets, can be taken to satisfy creditors.

Financial analysis and planning is concerned with analyzing the mix of assets and liabilities.

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 is

An effective ethics program can have all of the following positive benefits, EXCEPT

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

Financial service

The accountant's primary function is

The officer responsible for the firm's accounting activities, such as corporate accounting, tax management, financial accounting, and cost accounting is the

Stockholders expect to earn higher rates of return on investments of lower risk and lower rates of return on investments of higher risk.

An increase in firm risk tends to result in a higher share price since the stockholder must be compensated for the greater risk.

The part of finance concerned with design and delivery of advice and financial products to individuals, business, and government is called

Making investment decisions includes all of the following EXCEPT

Financial managers evaluating decision alternatives or potential actions must consider

Profit maximization as a goal is not ideal because it does NOT directly consider

The true owner(s) of the corporation is (are) the

Included in the primary activities of the financial manager are

The ________ is responsible for evaluating and recommending proposed asset investments.

About 75 percent of all business firms are

Risk and the magnitude and timing of cash flows are the key determinants of share price, which represents the wealth of the owners in the firm.

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

Cash flow and risk are the key determinants in share price. Increased risk, other things remaining the same, results in

The sole proprietor has unlimited liability; his or her total investment in the business, but not his or her personal assets, can be taken to satisfy creditors.

Financial analysis and planning is concerned with analyzing the mix of assets and liabilities.

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 is

An effective ethics program can have all of the following positive benefits, EXCEPT

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