Question 1

Money obtained through various types of loans is called

Accepted Answer

A)  cash flow. 
B)  factor proceeds. 
C)  dividends. 
D)  equity capital. 
E)  debt capital. 
A)  cash flow. 
B)  factor proceeds. 
C)  dividends. 
D)  equity capital. 
E)  debt capital.

Question 2

When each new budget is based on the dollar amounts contained in the budget from the preceding year, a company is using ____ budgeting.

Accepted Answer

A)  zero-base 
B)  traditional 
C)  cash 
D)  capital 
E)  production 
A)  zero-base 
B)  traditional 
C)  cash 
D)  capital 
E)  production

Question 3

How many times can a corporation's stock be sold in the primary market?

Accepted Answer

A)  Once 
B)  Twice 
C)  A maximum of three times 
D)  Once per year 
E)  Unlimited 
A)  Once 
B)  Twice 
C)  A maximum of three times 
D)  Once per year 
E)  Unlimited

Question 4

In regards to cash flow, a firm should ideally have

Accepted Answer

A)  enough money coming into the firm to cover the expenses in that period. 
B)  more cash flowing out than in since this represents growth. 
C)  to use short-term financing only two to three times a year. 
D)  a constant need for short-term financing. 
E)  most of its cash going to its customers. 
A)  enough money coming into the firm to cover the expenses in that period. 
B)  more cash flowing out than in since this represents growth. 
C)  to use short-term financing only two to three times a year. 
D)  a constant need for short-term financing. 
E)  most of its cash going to its customers.

Question 5

The two types of stock a company can sell are

Accepted Answer

A)  asset and convertible. 
B)  preferred and standard. 
C)  common and class. 
D)  equity and asset. 
E)  preferred and common. 
A)  asset and convertible. 
B)  preferred and standard. 
C)  common and class. 
D)  equity and asset. 
E)  preferred and common.

Question 6

For a department store such as Macy's, the most likely need for short-term financing will be for

Accepted Answer

A)  inventory. 
B)  employee wages. 
C)  extending credit policies. 
D)  new locations. 
E)  additional cash registers. 
A)  inventory. 
B)  employee wages. 
C)  extending credit policies. 
D)  new locations. 
E)  additional cash registers.

Question 7

The first step in building a budget is to identify sources of debt financing.

Accepted Answer

A) True 
 B)False

Question 8

To raise money, Fawcett Productions sold its accounts receivable to a ____. In doing so, Fawcett received cash and shifted to the other company both the task of collecting and the risk of nonpayment.

Accepted Answer

A)  credit-reporting agency 
B)  stockbroker 
C)  factor 
D)  real estate agent 
E)  credit union 
A)  credit-reporting agency 
B)  stockbroker 
C)  factor 
D)  real estate agent 
E)  credit union

Question 9

Use of a warehouse receipt in short-term financing indicates that

Accepted Answer

A)  a loan has been secured by inventory. 
B)  a loan has been obtained to purchase raw materials. 
C)  a shipper or freight company has bought merchandise from a company. 
D)  fur coats are being stored in a retail location. 
E)  the lender is taking precautions because the loan is unsecured. 
A)  a loan has been secured by inventory. 
B)  a loan has been obtained to purchase raw materials. 
C)  a shipper or freight company has bought merchandise from a company. 
D)  fur coats are being stored in a retail location. 
E)  the lender is taking precautions because the loan is unsecured.

Question 10

Baxter Equipment earned $300,000 last year. Its owners' equity totaled $2,500,000. Based on these amounts, what is the firm's return on owners' equity?

Accepted Answer

A)  1.2 percent 
B)  8.33 percent 
C)  12 percent 
D)  122 percent 
E)  It is impossible to calculate the return on owners' equity with this information. 
A)  1.2 percent 
B)  8.33 percent 
C)  12 percent 
D)  122 percent 
E)  It is impossible to calculate the return on owners' equity with this information.

Question 11

Each of the following causes a cash flow problem except

Accepted Answer

A)  a large proportion of credit sales. 
B)  embezzlement of company funds. 
C)  unexpected slow selling seasons. 
D)  slow-paying customers. 
E)  customers who pay early. 
A)  a large proportion of credit sales. 
B)  embezzlement of company funds. 
C)  unexpected slow selling seasons. 
D)  slow-paying customers. 
E)  customers who pay early.

Money obtained through various types of loans is called

When each new budget is based on the dollar amounts contained in the budget from the preceding year, a company is using ____ budgeting.

How many times can a corporation's stock be sold in the primary market?

In regards to cash flow, a firm should ideally have

The two types of stock a company can sell are

For a department store such as Macy's, the most likely need for short-term financing will be for

The first step in building a budget is to identify sources of debt financing.

To raise money, Fawcett Productions sold its accounts receivable to a ____. In doing so, Fawcett received cash and shifted to the other company both the task of collecting and the risk of nonpayment.

Use of a warehouse receipt in short-term financing indicates that

Baxter Equipment earned $300,000 last year. Its owners' equity totaled $2,500,000. Based on these amounts, what is the firm's return on owners' equity?

Each of the following causes a cash flow problem except

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

A: Exploring Global Business

B: Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Wholesaling, Retailing, and Physical Distribution

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

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Exam 19: Mastering Financial Management

Money obtained through various types of loans is called

When each new budget is based on the dollar amounts contained in the budget from the preceding year, a company is using ____ budgeting.

How many times can a corporation's stock be sold in the primary market?

In regards to cash flow, a firm should ideally have

The two types of stock a company can sell are

For a department store such as Macy's, the most likely need for short-term financing will be for

The first step in building a budget is to identify sources of debt financing.

To raise money, Fawcett Productions sold its accounts receivable to a ____. In doing so, Fawcett received cash and shifted to the other company both the task of collecting and the risk of nonpayment.

Use of a warehouse receipt in short-term financing indicates that

Baxter Equipment earned $300,000 last year. Its owners' equity totaled $2,500,000. Based on these amounts, what is the firm's return on owners' equity?

Each of the following causes a cash flow problem except

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

A: Exploring Global Business

B: Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Wholesaling, Retailing, and Physical Distribution

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

Filters