BCOR 2204 Finance 2026-Quizzes with Correct
Answers
financial services
concerned with design and delivery of advice and financial products to individuals, businesses,
and governments
managerial finance involves...
tasks such as budgeting, financial forecasting, cash management, and funds procurement
profit maximization as the "goal" of the firm is BAD because...
profit maximization DOES NOT consider risk
Pro-active ethics program is expected to result in...
a positive corporate image and increased respect, a reduction in risk, and enhanced cash flow
resulting in an increase in share price
The Board of Directors is responsible for...
approving strategic goals and plans
The agency problem may result from a manager's concerns about...
job security
The profitability ratios are...
primarily used as measures of return
current ratios are usually between
,1 and 2
-high current ratio: a lot of money
Inventory Turnover Ratio may...
indicate firm is experiencing stockout and lost sales
Inventory Turnover Ratio measures...
the activity, or liquidity, of a firm's stock of goods
Total Asset Turnover indicates...
the efficiency with which the firm uses its assets to generate sales
Example: Gross profit margin is inferior to the industry standard. This may have resulted
from...
the high cost of goods sold
GPM: sales-COGS
What is a cash inflow?
a decrease in accounts receivable
An external sales forecast is based on ________.
the relationships between a firm's sales and certain key economic indicators such as GDP and
consumer confidence
The key input to the short-term financial planning process is...
the sales forecast
, The key input to any cash budget is...
the sales forecast
If a firm expects short-term cash surpluses, it can plan ________.
short-term investments
the primary purpose in preparing pro forma financial statements is...
for profit planning
Pro forma statements are...
projected financial statements
the key inputs for preparing pro forma income statements using the simplified approaches
are the...
sales forecast for the coming year and financial statements for the preceding year
the percentage-of-sales method of preparing pro forma income statements assumes that
All costs are variable
In a period of rising utilities past cost and expense ratios (percent-of-sales method), when
preparing pro forma financial statements and planning financing, will tend to______.
UNDERSTATE retained earnings and OVERSTATE the financing needed
External financing required
arrange for a loan
Finance
Answers
financial services
concerned with design and delivery of advice and financial products to individuals, businesses,
and governments
managerial finance involves...
tasks such as budgeting, financial forecasting, cash management, and funds procurement
profit maximization as the "goal" of the firm is BAD because...
profit maximization DOES NOT consider risk
Pro-active ethics program is expected to result in...
a positive corporate image and increased respect, a reduction in risk, and enhanced cash flow
resulting in an increase in share price
The Board of Directors is responsible for...
approving strategic goals and plans
The agency problem may result from a manager's concerns about...
job security
The profitability ratios are...
primarily used as measures of return
current ratios are usually between
,1 and 2
-high current ratio: a lot of money
Inventory Turnover Ratio may...
indicate firm is experiencing stockout and lost sales
Inventory Turnover Ratio measures...
the activity, or liquidity, of a firm's stock of goods
Total Asset Turnover indicates...
the efficiency with which the firm uses its assets to generate sales
Example: Gross profit margin is inferior to the industry standard. This may have resulted
from...
the high cost of goods sold
GPM: sales-COGS
What is a cash inflow?
a decrease in accounts receivable
An external sales forecast is based on ________.
the relationships between a firm's sales and certain key economic indicators such as GDP and
consumer confidence
The key input to the short-term financial planning process is...
the sales forecast
, The key input to any cash budget is...
the sales forecast
If a firm expects short-term cash surpluses, it can plan ________.
short-term investments
the primary purpose in preparing pro forma financial statements is...
for profit planning
Pro forma statements are...
projected financial statements
the key inputs for preparing pro forma income statements using the simplified approaches
are the...
sales forecast for the coming year and financial statements for the preceding year
the percentage-of-sales method of preparing pro forma income statements assumes that
All costs are variable
In a period of rising utilities past cost and expense ratios (percent-of-sales method), when
preparing pro forma financial statements and planning financing, will tend to______.
UNDERSTATE retained earnings and OVERSTATE the financing needed
External financing required
arrange for a loan
Finance
