PRINCIPLES OF CORPORATE FINANCE 2026
PRACTICE QUESTION SET TWO
◉ The CFO and executive team of Quick Convenience Stores find
they are not able to achieve financial goals and successfully run the
business. It is most likely that the _____. Answer: corporate cash is
not well managed
◉ A company's bank statement is reconciled each month, making it
possible to compare banking activities to ensure all funds are
allocated correctly. Answer: True
◉ A corporate officer is reading a financial closing statement. It is
most likely this financial information would represent the _____.
(Select all that apply.) Answer: year-end statement for the business
final statement for a business that just closed
end of a period of doing business internationally
closing of an event that was run for the past three months
◉ The Mason Corporation's fiscal year is ending soon. It is most
likely that date is _____. (Select all that apply.) Answer: March 31
June 30
September 30
,◉ A company's profitability is found by dividing the total expenses
into the total income. Answer: True
◉ A new corporate employee is reviewing the company's most
recent financial statement. She sees a large sum in the "Other"
category. She knows this probably means _____. Answer: the situation
should be researched further
◉ A corporation's executive officers are reviewing all pertinent
financial data before they decide whether to buy a new warehouse
building. It sounds as though they are most likely doing a _____.
Answer: fundamental analysis
◉ Carmen is reviewing payroll tax information and will report to the
company president when she has a financial report ready. Answer:
controller
◉ Jose is comparing the company's profits with other similar-sized
companies and assessing short-term sales goals. Answer: financial
analyst
◉ Erika gets all the receipts from deliveries made to and from the
company's warehouse. Answer: bookkeeper
, ◉ Jackson is negotiating a new dental plan for employees of the
company. Answer: benefits manager
◉ Multiple response multiple choice: An accountant is looking at the
financial information for the Speedway Corporation. She finds that
there are several bills in accounts receivable. The bills most likely to
be uncollectable are _____. (Select all that apply.) Answer: Company C,
a little over 90 days old
Company D, a little over 120 days oldCompany D, a little over 120
days old
◉ A company is hoping to secure a $300,000 bank line of credit. It is
likely the bank will first do an acid test ratio to see whether the
company seems to be a good candidate for such a line. Answer: True
◉ A Big Food warehouse worker accepts delivery of 100 cases of
Crispy Cereal bars. She and other workers load these onto Shelf A of
the warehouse's cereal section, then load six cases of Crispy Cereal
bars from Shelf D onto a truck headed for one of their retail stores. It
sounds as though this inventory entered as _____. Answer: FIFO
◉ In accounting, the acronym LIFO stands for _____. Answer: last in,
first out
PRACTICE QUESTION SET TWO
◉ The CFO and executive team of Quick Convenience Stores find
they are not able to achieve financial goals and successfully run the
business. It is most likely that the _____. Answer: corporate cash is
not well managed
◉ A company's bank statement is reconciled each month, making it
possible to compare banking activities to ensure all funds are
allocated correctly. Answer: True
◉ A corporate officer is reading a financial closing statement. It is
most likely this financial information would represent the _____.
(Select all that apply.) Answer: year-end statement for the business
final statement for a business that just closed
end of a period of doing business internationally
closing of an event that was run for the past three months
◉ The Mason Corporation's fiscal year is ending soon. It is most
likely that date is _____. (Select all that apply.) Answer: March 31
June 30
September 30
,◉ A company's profitability is found by dividing the total expenses
into the total income. Answer: True
◉ A new corporate employee is reviewing the company's most
recent financial statement. She sees a large sum in the "Other"
category. She knows this probably means _____. Answer: the situation
should be researched further
◉ A corporation's executive officers are reviewing all pertinent
financial data before they decide whether to buy a new warehouse
building. It sounds as though they are most likely doing a _____.
Answer: fundamental analysis
◉ Carmen is reviewing payroll tax information and will report to the
company president when she has a financial report ready. Answer:
controller
◉ Jose is comparing the company's profits with other similar-sized
companies and assessing short-term sales goals. Answer: financial
analyst
◉ Erika gets all the receipts from deliveries made to and from the
company's warehouse. Answer: bookkeeper
, ◉ Jackson is negotiating a new dental plan for employees of the
company. Answer: benefits manager
◉ Multiple response multiple choice: An accountant is looking at the
financial information for the Speedway Corporation. She finds that
there are several bills in accounts receivable. The bills most likely to
be uncollectable are _____. (Select all that apply.) Answer: Company C,
a little over 90 days old
Company D, a little over 120 days oldCompany D, a little over 120
days old
◉ A company is hoping to secure a $300,000 bank line of credit. It is
likely the bank will first do an acid test ratio to see whether the
company seems to be a good candidate for such a line. Answer: True
◉ A Big Food warehouse worker accepts delivery of 100 cases of
Crispy Cereal bars. She and other workers load these onto Shelf A of
the warehouse's cereal section, then load six cases of Crispy Cereal
bars from Shelf D onto a truck headed for one of their retail stores. It
sounds as though this inventory entered as _____. Answer: FIFO
◉ In accounting, the acronym LIFO stands for _____. Answer: last in,
first out
