Question 1

Long-term assets are the focus of

Accepted Answer

A)  cash budgeting. 
B)  capital budgeting. 
C)  corporate planning. 
D)  investment planning. 
A)  cash budgeting. 
B)  capital budgeting. 
C)  corporate planning. 
D)  investment planning.

Question 2

Match the term with its definition.
-A capital budgeting technique that measures the amount of time it will take to recover the initial cash outlay of an investment

Accepted Answer

A) accounting return on investment technique 
B) capital budgeting analysis 
C) discounted cash flow (DCF) techniques 
D) internal rate of return (IRR) 
E) net present value (NPV)
F)payback period technique
G)pledged accounts receivable 
A) accounting return on investment technique 
B) capital budgeting analysis 
C) discounted cash flow (DCF) techniques 
D) internal rate of return (IRR) 
E) net present value (NPV)
F)payback period technique
G)pledged accounts receivable

Question 3

A shortcoming of the accounting return on investment technique is that it is based on actual cash flows received rather than accounting profits.

Accepted Answer

A) True 
 B)False

Question 4

Pearl has been asked by her boss to manage the company's working capital. This means Pearl is now in charge of

Accepted Answer

A)  cash, fixed assets, and inventory. 
B)  cash, accounts receivable, inventory, and accounts payable. 
C)  cash, accounts receivable, and fixed assets. 
D)  accounts receivable, accounts payable, and long-term investments. 
A)  cash, fixed assets, and inventory. 
B)  cash, accounts receivable, inventory, and accounts payable. 
C)  cash, accounts receivable, and fixed assets. 
D)  accounts receivable, accounts payable, and long-term investments.

Question 5

The cash conversion period is the time span required to convert paid-for inventory and accounts receivables into cash.

Accepted Answer

A) True 
 B)False

Question 6

Jane has started a gift basket company that specializes in regional products. Several corporations use her baskets for the holidays, to welcome new employees, and for their sales staff to use as gifts for corporate clients. Because she noticed her average collection period from last quarter to this quarter had doubled to 60 days, she then realized the company's days in inventory has increased from 30 to 40 days and the days in payables dropped from 35 to 30 days. After calculating each quarter's cash conversion periods, what do the changes indicate?

Accepted Answer

Previous Quarter @#IMG-DLM& ? @#IMG-DLM& ? @#IMG-DLM& ? This Qu

Question 7

Revenue is recorded at the time a sale is made, but cash receipts are recorded when money actually flows into the firm.

Accepted Answer

A) True 
 B)False

Question 8

An advantage of the accounting return on investment technique is that it ignores the time value of money.

Accepted Answer

A) True 
 B)False

Question 9

The main purpose of capital budgeting is to help managers make decisions about

Accepted Answer

A)  discounts to offer to customers. 
B)  long-term investments. 
C)  nonfinancial constraints on expansion. 
D)  short-term investments. 
A)  discounts to offer to customers. 
B)  long-term investments. 
C)  nonfinancial constraints on expansion. 
D)  short-term investments.

Question 10

The payback period and accounting return on investment techniques

Accepted Answer

A)  recognize the economic life of a project. 
B)  ignore the time value of money. 
C)  consider only the return for the first year of the investment. 
D)  are more difficult to use than the net present value (NPV) method. 
A)  recognize the economic life of a project. 
B)  ignore the time value of money. 
C)  consider only the return for the first year of the investment. 
D)  are more difficult to use than the net present value (NPV) method.

Question 11

Batching invoices holds up the receipt of customers' money and its deposit in the bank.

Accepted Answer

A) True 
 B)False

Question 12

The percentage annual interest rate is the rate a business will pay by not taking a discount.

Accepted Answer

A) True 
 B)False

Question 13

The last step in managing inventory is to discover how long inventory has been at the company.

Accepted Answer

A) True 
 B)False

Question 14

Madeleine would like to know the number of days, on average, that her company carries inventory. Madeleine is interested in the

Accepted Answer

A)  days in credit. 
B)  days in inventory. 
C)  days in payables. 
D)  average collection period. 
A)  days in credit. 
B)  days in inventory. 
C)  days in payables. 
D)  average collection period.

Question 15

Discuss the types of accounts receivable financing. What are the advantages and disadvantages of using accounts receivable financing?

Accepted Answer

Some small businesses speed up the cash

Question 16

Days in inventory is equal to the number of days a firm waits to be paid for inventory that has been sold.

Accepted Answer

A) True 
 B)False

Long-term assets are the focus of

Match the term with its definition. -A capital budgeting technique that measures the amount of time it will take to recover the initial cash outlay of an investment

A shortcoming of the accounting return on investment technique is that it is based on actual cash flows received rather than accounting profits.

Pearl has been asked by her boss to manage the company's working capital. This means Pearl is now in charge of

The cash conversion period is the time span required to convert paid-for inventory and accounts receivables into cash.

Revenue is recorded at the time a sale is made, but cash receipts are recorded when money actually flows into the firm.

An advantage of the accounting return on investment technique is that it ignores the time value of money.

The main purpose of capital budgeting is to help managers make decisions about

The payback period and accounting return on investment techniques

Batching invoices holds up the receipt of customers' money and its deposit in the bank.

The percentage annual interest rate is the rate a business will pay by not taking a discount.

The last step in managing inventory is to discover how long inventory has been at the company.

Madeleine would like to know the number of days, on average, that her company carries inventory. Madeleine is interested in the

Discuss the types of accounts receivable financing. What are the advantages and disadvantages of using accounts receivable financing?

Days in inventory is equal to the number of days a firm waits to be paid for inventory that has been sold.

The Entrepreneurial Lifethe Entrepreneurial Life

Integrity, Ethics, and Social Entrepreneurship

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Businesses

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing Risk

Filters

Exam 22: Managing the Firms Assets

Long-term assets are the focus of

Match the term with its definition. -A capital budgeting technique that measures the amount of time it will take to recover the initial cash outlay of an investment

A shortcoming of the accounting return on investment technique is that it is based on actual cash flows received rather than accounting profits.

Pearl has been asked by her boss to manage the company's working capital. This means Pearl is now in charge of

The cash conversion period is the time span required to convert paid-for inventory and accounts receivables into cash.

Revenue is recorded at the time a sale is made, but cash receipts are recorded when money actually flows into the firm.

An advantage of the accounting return on investment technique is that it ignores the time value of money.

The main purpose of capital budgeting is to help managers make decisions about

The payback period and accounting return on investment techniques

Batching invoices holds up the receipt of customers' money and its deposit in the bank.

The percentage annual interest rate is the rate a business will pay by not taking a discount.

The last step in managing inventory is to discover how long inventory has been at the company.

Madeleine would like to know the number of days, on average, that her company carries inventory. Madeleine is interested in the

Discuss the types of accounts receivable financing. What are the advantages and disadvantages of using accounts receivable financing?

Days in inventory is equal to the number of days a firm waits to be paid for inventory that has been sold.

The Entrepreneurial Lifethe Entrepreneurial Life

Integrity, Ethics, and Social Entrepreneurship

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Businesses

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing Risk

Filters