Test Bank - Principles of Managerial Finance - Chapters 1 through 8

HRD 8003|VILLANOVA UNIVERSITY Define finance and the managerial finance function. 1) A financial analyst is responsible for maintaining and controlling a firm's daily cash balances. Answer: FALSE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 2) Finance is concerned with the process institutions, markets, and instruments involved in the transfer of money among and between individuals, businesses, and government. Answer: TRUE Diff: 1 Topic: What is Finance? Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Previous Edition AACSB Tag: Analytic Skills 3) Financial managers administer the financial affairs of all types of businesses such as private and public, large and small, and profit seeking and not for profit. Answer: TRUE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: New AACSB Tag: Analytic Skills 4) Financial managers perform different tasks developing a financial plan or budget, extending credit to customers, evaluating proposed large expenditures, and raising money to fund a firm's operations. Answer: TRUE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: New AACSB Tag: Analytic Skills 5) A capital expenditures analyst/manager is responsible for the evaluation and recommendation of proposed asset investments. Answer: TRUE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 6) A controller administers a firm's credit policy by analyzing or managing the evaluation of credit applications, extending credit, and monitoring and collecting accounts receivable. Answer: FALSE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 7) In large companies, CEOs are legally responsible for coordinating the assets and liabilities of employees' pension fund. Answer: FALSE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 8) A controller typically handles the accounting activities, such as tax management, data processing, financial accounting, and cost accounting. Answer: TRUE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 9) Managerial finance is concerned with design and delivery of advice and financial products to individuals, businesses, and governments. Answer: FALSE Diff: 1 Topic: Career Opportunities in Finance Learning.......