Question 1

Which of the following line items in a balance sheet is considered the most for making a financing decision?

Accepted Answer

A)  current assets 
B)  long-term liabilities 
C)  revenue 
D)  cost of goods sold 
A)  current assets 
B)  long-term liabilities 
C)  revenue 
D)  cost of goods sold

Question 2

Managing a firm's assets includes ________.

Accepted Answer

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

Question 3

To achieve the goal of profit maximization for each alternative being considered, a financial manager would select the one that is expected to result in the highest return.

Accepted Answer

A) True 
 B)False

Question 4

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)  the agency issue 
A)  insider trading activities 
B)  false disclosures in financial reporting 
C)  the decline in technology stocks 
D)  the agency issue

Question 5

A controller administers a 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 6

Which of the following is an area of career opportunities 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 7

The board of directors is responsible for managing day-to-day operations and carrying out the policies established by the chief executive officer.

Accepted Answer

A) True 
 B)False

Question 8

Financial managers evaluating decision alternatives or potential actions must consider ________.

Accepted Answer

A)  only risk 
B)  only return 
C)  either risk or return 
D)  risk, return, and the impact on share price 
A)  only risk 
B)  only return 
C)  either risk or return 
D)  risk, return, and the impact on share price

Question 9

A 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 10

Agents of corporate owners are themselves owners of the firm and have been elected by all the corporate owners to represent them in decision-making and management of the firm.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is the best measure of profit maximization goal?

Accepted Answer

A)  retained earnings 
B)  risk of the investment 
C)  earnings per share 
D)  timing of the returns 
A)  retained earnings 
B)  risk of the investment 
C)  earnings per share 
D)  timing of the returns

Question 12

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

Accepted Answer

A)  dividend per share 
B)  earnings per share 
C)  net profits after taxes 
D)  book value per share 
A)  dividend per share 
B)  earnings per share 
C)  net profits after taxes 
D)  book value per share

Question 13

A capital expenditures analyst/manager is responsible for the evaluation and recommendation of proposed asset investments.

Accepted Answer

A) True 
 B)False

Question 14

A financial manager's financing decisions determine ________.

Accepted Answer

A)  both the mix and the type of assets found on the firm's balance sheet 
B)  the most appropriate mix of short-term and long-term financing 
C)  both the mix and the type of assets and liabilities found on the firm's balance sheet 
D)  the proportion of the firm's earnings to be paid as dividend 
A)  both the mix and the type of assets found on the firm's balance sheet 
B)  the most appropriate mix of short-term and long-term financing 
C)  both the mix and the type of assets and liabilities found on the firm's balance sheet 
D)  the proportion of the firm's earnings to be paid as dividend

Question 15

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 16

In partnerships, owners have unlimited liability and may have to cover debts of other less financially sound partners.

Accepted Answer

A) True 
 B)False

Question 17

Financing decisions deal with the left-hand side of the firm's balance sheet.

Accepted Answer

A) True 
 B)False

Question 18

Finance is ________.

Accepted Answer

A)  the system of verifying, analyzing, and recording business transactions 
B)  the science of the production, distribution, and consumption of goods and services 
C)  the art and science of managing money 
D)  the art of merchandising products and services 
A)  the system of verifying, analyzing, and recording business transactions 
B)  the science of the production, distribution, and consumption of goods and services 
C)  the art and science of managing money 
D)  the art of merchandising products and services

Question 19

Which of the following legal forms of organizations is characterized by unlimited liability?

Accepted Answer

A)  sole proprietorship 
B)  limited partnership 
C)  corporation 
D)  C-corporation 
A)  sole proprietorship 
B)  limited partnership 
C)  corporation 
D)  C-corporation

Question 20

Making financing decisions includes ________.

Accepted Answer

A)  determining the appropriate mix of short-term and long-term financing 
B)  deciding on which individual securities to select for investment 
C)  analyzing quarterly budget and performance reports 
D)  improving the productivity of manufacturing products 
A)  determining the appropriate mix of short-term and long-term financing 
B)  deciding on which individual securities to select for investment 
C)  analyzing quarterly budget and performance reports 
D)  improving the productivity of manufacturing products

Which of the following line items in a balance sheet is considered the most for making a financing decision?

Managing a firm's assets includes ________.

To achieve the goal of profit maximization for each alternative being considered, a financial manager would select the one that is expected to result in the highest return.

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

A controller administers a firm's credit policy by analyzing or managing the evaluation of credit applications, extending credit, and monitoring and collecting accounts receivable.

Which of the following is an area of career opportunities in managerial finance?

The board of directors is responsible for managing day-to-day operations and carrying out the policies established by the chief executive officer.

Financial managers evaluating decision alternatives or potential actions must consider ________.

A controller is commonly responsible for ________.

Agents of corporate owners are themselves owners of the firm and have been elected by all the corporate owners to represent them in decision-making and management of the firm.

Which of the following is the best measure of profit maximization goal?

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

A capital expenditures analyst/manager is responsible for the evaluation and recommendation of proposed asset investments.

A financial manager's financing decisions determine ________.

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

In partnerships, owners have unlimited liability and may have to cover debts of other less financially sound partners.

Financing decisions deal with the left-hand side of the firm's balance sheet.

Finance is ________.

Which of the following legal forms of organizations is characterized by unlimited liability?

Making financing decisions includes ________.

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

Which of the following line items in a balance sheet is considered the most for making a financing decision?

Managing a firm's assets includes ________.

To achieve the goal of profit maximization for each alternative being considered, a financial manager would select the one that is expected to result in the highest return.

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

A controller administers a firm's credit policy by analyzing or managing the evaluation of credit applications, extending credit, and monitoring and collecting accounts receivable.

Which of the following is an area of career opportunities in managerial finance?

The board of directors is responsible for managing day-to-day operations and carrying out the policies established by the chief executive officer.

Financial managers evaluating decision alternatives or potential actions must consider ________.

A controller is commonly responsible for ________.

Agents of corporate owners are themselves owners of the firm and have been elected by all the corporate owners to represent them in decision-making and management of the firm.

Which of the following is the best measure of profit maximization goal?

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

A capital expenditures analyst/manager is responsible for the evaluation and recommendation of proposed asset investments.

A financial manager's financing decisions determine ________.

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

In partnerships, owners have unlimited liability and may have to cover debts of other less financially sound partners.

Financing decisions deal with the left-hand side of the firm's balance sheet.

Finance is ________.

Which of the following legal forms of organizations is characterized by unlimited liability?

Making financing decisions includes ________.

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