Question 1

Which of the following organizations would be most likely to acquire short-term funding by issuing commercial paper?

Accepted Answer

A)  A well-known,financially stable corporation.
B)  A small business that is unable to qualify for loans from commercial banks.
C)  A firm with a significant percentage of current assets held as accounts receivable.
D)  A company that prefers equity financing to obtain short-term funds.E) B) and D)
F) All of the above

Question 2

The budget that estimates a firm's projected cash inflows and outflows,and helps managers anticipate borrowing needs,debt repayment,operating expenses and short-term investments is called the ________ budget.

Accepted Answer

A)  capital
B)  operating
C)  cash
D)  monetaryE) A) and B)
F) B) and C)

Question 3

The primary focus of a cash flow forecast is the firm's revenue and costs for the current operating period.

Accepted Answer

A) True 
 B)False

Question 4

Equity financing must be repaid.

Accepted Answer

A) True 
 B)False

Question 5

Jackson Plumbing,a medium sized company,wants to guarantee that it can obtain short-term funds to meet unexpected future cash needs.Which of the following strategies would best meet the financing needs of Jackson Plumbing? Financial managers at Jackson Plumbing should:

Accepted Answer

A)  issue commercial paper as needed.
B)  request that the firm's board of directors approve an issue of additional shares of common stock.
C)  arrange with the firm's commercial bank a revolving credit agreement.
D)  eliminate credit sales to improve their cash inflows and reduce the firm's investment in accounts receivable.E) A) and B)
F) A) and C)

Question 6

Clark,president of Cycles Go Go,worries that cash flows may be insufficient to pay his current operating expenses.While he anticipates a surplus of cash inflows as warm weather approaches,he needs to borrow funds now to meet his immediate obligations.Clark can best resolve his cash flow concerns by obtaining ________ financing.

Accepted Answer

A)  intermediate
B)  contingency
C)  short-term
D)  long-termE) A) and B)
F) B) and C)

Question 7

Sarah intends to major in finance and find employment in corporate financial management.As a finance major,Sarah will discover her ________ courses to be similar to her finance classes.

Accepted Answer

A)  marketing
B)  psychology
C)  sociology
D)  accountingE) A) and B)
F) B) and D)

Question 8

The _________ budget is generally the most detailed and used budget that a firm prepares.

Accepted Answer

A)  operating
B)  capital
C)  cash
D)  all of the answers are correctE) None of the above
F) B) and D)

Question 9

The effective management of accounts receivables requires financial managers to:

Accepted Answer

A)  review the credit history of new customers.
B)  provide prompt cash payments to suppliers.
C)  allow customers more time in paying their past due accounts.
D)  refuse bank-issued credit cards.E) None of the above
F) All of the above

Question 10

Equity financing represents money acquired from the operations of the firm or through the sale of ownership in the company.

Accepted Answer

A) True 
 B)False

Question 11

A promissory note that requires the borrower to repay the loan in specified installments is called a(n) :

Accepted Answer

A)  repayment scheduling.
B)  term loan agreement.
C)  amortization installment.
D)  revolving line of credit.E) None of the above
F) All of the above

Question 12

________ represents funds acquired for major purchases that will be repaid over a year or longer.

Accepted Answer

A)  Short-term financing
B)  Asset funding
C)  Liability funding
D)  Long-term financingE) All of the above
F) A) and D)

Question 13

A(n) ________ allocates dollars to various costs and expenses needed to operate a business at an estimated level of sales revenue.

Accepted Answer

A)  forecast
B)  balance sheet
C)  budget
D)  income statementE) B) and C)
F) A) and C)

Question 14

___________ refers to the process that identifies variances by comparing actual revenues and expenses to projected revenues and expenses.

Accepted Answer

A)  Factor analysis
B)  Forecasting
C)  Financial planning
D)  Financial controlE) None of the above
F) A) and C)

Question 15

A _________ forecast predicts the revenues,costs,and expenses a firm will incur for a period of one year or less.

Accepted Answer

A)  near-horizon
B)  short-term
C)  capital expenditures
D)  tacticalE) A) and B)
F) A) and C)

Question 16

Identify and describe three types of short-term financing.

Accepted Answer

Students may mention that short-term fin...

Question 17

The costs to a retailer of accepting credit cards are generally greater than the benefits provided.

Accepted Answer

A) True 
 B)False

Question 18

____________ represent major investments in long-term assets such as land,buildings,and trademarks.

Accepted Answer

A)  Capital expenditures
B)  Commercial investments
C)  Intangible allocations
D)  Extreme resourcesE) C) and D)
F) A) and D)

Question 19

Financing that must be repaid within one year represents:

Accepted Answer

A)  short-term financing.
B)  asset funding.
C)  liability funding.
D)  long-term financing.E) None of the above
F) B) and D)

Question 20

Finance is the function in a business that acquires,manages,and plans for the expenditure of funds.

Accepted Answer

A) True 
 B)False

Exam 17: Financial Management

Sarah intends to major in finance and find employment in corporate financial management.As a finance major,Sarah will discover her ________ courses to be similar to her finance classes.

Correct Answer
verified

Equity financing represents money acquired from the operations of the firm or through the sale of ownership in the company.

Correct Answer
verified

A promissory note that requires the borrower to repay the loan in specified installments is called a(n) :

Correct Answer
verified

Finance is the function in a business that acquires,manages,and plans for the expenditure of funds.

Correct Answer
verified

A(n) ________ allocates dollars to various costs and expenses needed to operate a business at an estimated level of sales revenue.

Correct Answer
verified

Jackson Plumbing,a medium sized company,wants to guarantee that it can obtain short-term funds to meet unexpected future cash needs.Which of the following strategies would best meet the financing needs of Jackson Plumbing? Financial managers at Jackson Plumbing should:

Correct Answer
verified

The costs to a retailer of accepting credit cards are generally greater than the benefits provided.

Correct Answer
verified

The effective management of accounts receivables requires financial managers to:

Correct Answer
verified

Financing that must be repaid within one year represents:

Correct Answer
verified

________ represents funds acquired for major purchases that will be repaid over a year or longer.

Correct Answer
verified

A _________ forecast predicts the revenues,costs,and expenses a firm will incur for a period of one year or less.

Correct Answer
verified

___________ refers to the process that identifies variances by comparing actual revenues and expenses to projected revenues and expenses.

Correct Answer
verified

The budget that estimates a firm's projected cash inflows and outflows,and helps managers anticipate borrowing needs,debt repayment,operating expenses and short-term investments is called the ________ budget.

Correct Answer
verified

Equity financing must be repaid.

Correct Answer
verified

____________ represent major investments in long-term assets such as land,buildings,and trademarks.

Correct Answer
verified

Correct Answer
verified

The primary focus of a cash flow forecast is the firm's revenue and costs for the current operating period.

Correct Answer
verified

Identify and describe three types of short-term financing.

Correct Answer
verified
Students may mention that short-term fin...
View Answer

The _________ budget is generally the most detailed and used budget that a firm prepares.

Correct Answer
verified

Which of the following organizations would be most likely to acquire short-term funding by issuing commercial paper?

Correct Answer
verified

Exam 17: Financial Management

Sarah intends to major in finance and find employment in corporate financial management.As a finance major,Sarah will discover her ________ courses to be similar to her finance classes.

Correct AnswerverifiedShow Answer

Equity financing represents money acquired from the operations of the firm or through the sale of ownership in the company.

Correct AnswerverifiedShow Answer

A promissory note that requires the borrower to repay the loan in specified installments is called a(n) :

Correct AnswerverifiedShow Answer

Finance is the function in a business that acquires,manages,and plans for the expenditure of funds.

Correct AnswerverifiedShow Answer

A(n) ________ allocates dollars to various costs and expenses needed to operate a business at an estimated level of sales revenue.

Correct AnswerverifiedShow Answer

Jackson Plumbing,a medium sized company,wants to guarantee that it can obtain short-term funds to meet unexpected future cash needs.Which of the following strategies would best meet the financing needs of Jackson Plumbing? Financial managers at Jackson Plumbing should:

Correct AnswerverifiedShow Answer

The costs to a retailer of accepting credit cards are generally greater than the benefits provided.

Correct AnswerverifiedShow Answer

The effective management of accounts receivables requires financial managers to:

Correct AnswerverifiedShow Answer

Financing that must be repaid within one year represents:

Correct AnswerverifiedShow Answer

________ represents funds acquired for major purchases that will be repaid over a year or longer.

Correct AnswerverifiedShow Answer

A _________ forecast predicts the revenues,costs,and expenses a firm will incur for a period of one year or less.

Correct AnswerverifiedShow Answer

___________ refers to the process that identifies variances by comparing actual revenues and expenses to projected revenues and expenses.

Correct AnswerverifiedShow Answer

The budget that estimates a firm's projected cash inflows and outflows,and helps managers anticipate borrowing needs,debt repayment,operating expenses and short-term investments is called the ________ budget.

Correct AnswerverifiedShow Answer

Equity financing must be repaid.

Correct AnswerverifiedShow Answer

____________ represent major investments in long-term assets such as land,buildings,and trademarks.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The primary focus of a cash flow forecast is the firm's revenue and costs for the current operating period.

Correct AnswerverifiedShow Answer

Identify and describe three types of short-term financing.

Correct AnswerverifiedStudents may mention that short-term fin...View AnswerShow Answer

The _________ budget is generally the most detailed and used budget that a firm prepares.

Correct AnswerverifiedShow Answer

Which of the following organizations would be most likely to acquire short-term funding by issuing commercial paper?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Students may mention that short-term fin...
View Answer

Correct Answer
verified

Correct Answer
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