FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Financial Management

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 101

True/False

Review LaterAdd Note

Review Later

The main objective of financial control is to establish priorities for the purchase of plant and equipment.

A) True
B) False

Correct Answer

verified

Show Answer

Question 102

Multiple Choice

Review LaterAdd Note

Review Later

Farmers Savings Co.agreed to extend Eckert's Orchards $200,000 of unsecured short-term funds,contingent upon the bank having the funds available.This arrangement represents a:

A) line of credit.
B) pledge agreement.
C) factoring agreement.
D) trade voucher.

E) None of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 103

Multiple Choice

Review LaterAdd Note

A _________ forecast predicts the revenues,costs,and expenses a firm will incur for a period longer than one year.

Susan is convinced that her new business failed because she lacked the necessary funds to do the things that it takes to get a new business up and running.Her problem apparently was:

What is financial management? Identify the duties and responsibilities of financial managers.

Inadequate control of expenses represents a common financial problem that contributes to business failures.

A financial manager is responsible for obtaining the necessary money to enable a firm to achieve its goals and objectives.

Liberty Electronics is uncertain about their revenues,costs,and expenditures for the coming year.This firm would benefit from developing a:

A _________ forecast predicts the future cash inflows and outflows.

Investors and entrepreneurs should have an understanding of financial issues.

Suppliers of short-term financing are prohibited from requiring collateral for the funds they lend to small businesses.

By identifying variances from the financial plan,managers are able to focus on those departments that require corrective action.

Financial managers are involved in tax management and budgeting.

Owners of __________ shares do not get a vote but stockholders do receive dividends.

Small businesses rely heavily on long-term financing.

A firm negotiates a(n) _________ with its bank so the firm will have access to a specified amount of unsecured short-term funds,provided the bank has the funds available.

An operating budget analyzes the firm's spending plans for long-lasting assets that require large sums of money.

Companies raising funds must choose either debt or equity sources,but not both.

The interest paid for debt financing is a tax deductible expense for the firm.

Tiffany's work in the finance department of her firm consists of checking accounting records and financial statements to verify that proper procedures are followed.Tiffany's activities are those of a(n) :