Professional Documents
Culture Documents
Agency theory
Corporate social responsibility
7. A concept that implies that the firm should consider
issues such as protecting the consumer, paying fair
wages, maintaining fair hiring practices, supporting
education, and considering environmental issues.
Financial management
Profit maximization
Agency theory
Corporate social responsibility
8. Which of the following is not normally a responsibility
of the treasurer of the modern corporation but rather
the controller?
Budgets and forecasts
Asset management
Investment management
Financing management
9. The __________ decision involves determining the
appropriate make-up of the right-hand side of the
balance sheet.
asset management
financing
investment
capital budgeting
10. To whom does the Treasurer most likely report?
Chief Financial Officer.
Vice President of Operations.
Chief Executive Officer.
Board of Directors.
11. The authors of your textbook suggest that you need
to understand financial management even if you have
no intention of becoming a financial manager. One
reason is that the successful manager of the not-toodistant future will need to be much more of a
__________ who has the knowledge and ability to move
not just vertically within an organization but horizontally
as well. Developing __________ will be the rule, not the
exception.
specialist; specialties
generalist; general business skills
technician; quantitative skills
team player; cross-functional capabilities
money
capital
primary
secondary
money
capital
primary
secondary
39 percent
35 percent
34 percent
the average tax rate of the firm
4. A corporation in the U.S. estimates and pays it taxes
__________.
monthly
quarterly
semi-annually
annually
1.60
2.05
2.50
4.00
Liquidity ratios.
Debt ratios.
Coverage ratios.
Profitability ratios.
Activity ratios.
18.
Which group of ratios relate the financial charges of a
firm to its ability to service them?
Liquidity ratios.
Debt ratios.
Coverage ratios.
Profitability ratios.
Activity ratios.
balance sheets.
income statements.
income tax and depreciation data.
None of the above answers are
4. An examination of the sources and uses of funds is
part of:
a forecasting technique.
a funds flow analysis.
a ratio analysis.
calculations for preparing the balance sheet.
5. Which of the following is not a cash outflow for the
firm?
Depreciation.
Dividends.
Interest payments.
Taxes.
11. A firm receives cash for 30% of its sales with the
remaining 70% being credit sales. Of the credit sales,
20% are collected in the month of sale, 60% in the
month following the sale, and 20% in the second month
following the sale. Forecasted sales for January through
April are $400,000, $500,000, $600,000, and $400,000
respectively. What are total cash receipts in the month
of April?
$120,000
$400,000
$498,000
$530,000
January.
February.
March.
April.
$1,600,000
$2,400,000
$3,200,000
$5,333,333
20. The firm had a net increase of $800,000 in net fixed
assets over the last period. The beginning and ending
net fixed asset account balances were $9,100,000 and
$9,900,000 respectively. If the firm purchased
$2,000,000 in additional fixed assets and sold $100,000
of fixed assets at book value, what was the firm's
depreciation expense over the period?
$800,000
$1,100,000
$1,900,000
$2,700,000
21. According to the accounting profession, which of the
following would be considered a cash-flow item from an
"investing" activity?
cash inflow from interest income.
cash inflow from dividend income.
cash outflow to acquire fixed assets.
all of the above.