Question 1

What are the three main types of unsecured short-term loans?

Accepted Answer

A)  trade credit, bank loans, and commercial paper 
B)  treasury bills, certificates of deposit, and accounts payable 
C)  trade credit, accounts payable, and bank loans 
D)  accounts payable, notes payable, and loans payable

Question 2

When Magna Manufacturing sells hand screwdriver sets to Malloy Building Supply Company, Magna bills the tool manufacturer for the screwdriver purchase with terms of payment, which specify when the account is due. What is this type of unsecured?

Accepted Answer

A)  trade credit 
B)  borrower's credit 
C)  product credit 
D)  revolving credit

Question 3

What is another name for short-term forecasts?

Accepted Answer

The answer of What is another name for short-term forecasts?...

Question 4

Which of the following is the process of identifying and evaluating risks and selecting and managing techniques to adapt to the risk exposure?

Accepted Answer

A)  risk management 
B)  insurance management 
C)  risk research 
D)  factoring

Question 5

Chez Dove is an independent coffeehouse/bookstore. In order to predict how much coffee it would serve, how many cups it would need, and how much staff it will require during July, which type of budget would the company use?

Accepted Answer

A)  cash budget 
B)  operating budget 
C)  centralized budget 
D)  strategic budget

Question 6

What are the three main types of unsecured short-term loans?

Accepted Answer

The answer of What are the three main types of...

Question 7

The benefits from capital expenditures extend beyond one year's time.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following are specially trained mathematicians who use the law of large numbers to develop tables that show the likeliness of a peril?

Accepted Answer

A)  actuaries 
B)  chartered accountants 
C)  derivative officers 
D)  certified financial analysts

Question 9

Of all the forms of equity capital, venture capital is the easiest to obtain.

Accepted Answer

A) True 
 B)False

Question 10

Operating budgets forecast outlays for fixed assets such as plant and equipment.

Accepted Answer

A) True 
 B)False

Question 11

The three most popular types of marketable securities are Treasury bills, certificates of deposit, and which of the following?

Accepted Answer

A)  money market funds 
B)  corporate bonds 
C)  Treasury notes 
D)  commercial paper

Question 12

Dividends and interest payment are both tax-deductible.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT one of the three most popular types of marketable securities?

Accepted Answer

A)  certificates of deposit 
B)  treasury bills 
C)  stocks 
D)  commercial paper

Question 14

A term loan is a loan with a maturity of less than a year.

Accepted Answer

A) True 
 B)False

Question 15

Grainger Distribution Company sold Long Electronics 10 circuit breakers for $169.00 each. Long Electronics will be allowed 30 days to pay the bill. Grainger will carry the $1690.00 on its books as which of the following?

Accepted Answer

A)  account receivable 
B)  account payable 
C)  current liability 
D)  fixed liability

Question 16

Who decides if and how much dividends should be paid?

Accepted Answer

A)  CEO 
B)  shareholders 
C)  board of directors 
D)  finance department

Question 17

How are secured short-term loans usually secured?

Accepted Answer

A)  by accounts receivable and inventory 
B)  by equipment and accounts payable 
C)  by accounts payable and accounts receivable 
D)  by inventory and equipment

Question 18

What are the main government-sponsored insurance programs?

Accepted Answer

The answer of What are the main government-sponsored insurance programs?...

Question 19

Which of the following is another source of equity capital?

Accepted Answer

A)  bonds 
B)  mutual funds 
C)  venture capital 
D)  derivatives

Question 20

Preferred shares are a form of debt financing because the dividend must be paid before dividends can be paid to the equity owners.

Accepted Answer

A) True 
 B)False

Exam 18: Finance

What are the three main types of unsecured short-term loans?

When Magna Manufacturing sells hand screwdriver sets to Malloy Building Supply Company, Magna bills the tool manufacturer for the screwdriver purchase with terms of payment, which specify when the account is due. What is this type of unsecured?

What is another name for short-term forecasts?

Which of the following is the process of identifying and evaluating risks and selecting and managing techniques to adapt to the risk exposure?

Chez Dove is an independent coffeehouse/bookstore. In order to predict how much coffee it would serve, how many cups it would need, and how much staff it will require during July, which type of budget would the company use?

What are the three main types of unsecured short-term loans?

The benefits from capital expenditures extend beyond one year's time.

Which of the following are specially trained mathematicians who use the law of large numbers to develop tables that show the likeliness of a peril?

Of all the forms of equity capital, venture capital is the easiest to obtain.

Operating budgets forecast outlays for fixed assets such as plant and equipment.

The three most popular types of marketable securities are Treasury bills, certificates of deposit, and which of the following?

Dividends and interest payment are both tax-deductible.

Which of the following is NOT one of the three most popular types of marketable securities?

A term loan is a loan with a maturity of less than a year.

Grainger Distribution Company sold Long Electronics 10 circuit breakers for $169.00 each. Long Electronics will be allowed 30 days to pay the bill. Grainger will carry the $1690.00 on its books as which of the following?

Who decides if and how much dividends should be paid?

How are secured short-term loans usually secured?

What are the main government-sponsored insurance programs?

Which of the following is another source of equity capital?

Preferred shares are a form of debt financing because the dividend must be paid before dividends can be paid to the equity owners.