BFIN Final Exam
With good accounting knowledge, a financial manager can - CORRECT
ANSWER-understand financial data of the firm
Accounting can help financial managers: - CORRECT ANSWER-to interpret and
use financial information in allocating financial resources more efficiently
The field of finance is closely linked to: - CORRECT ANSWER-accounting and
economics
The goal of financial management is: - CORRECT ANSWER-to maximize
shareholder's wealth
Which of the following is not a drawback for profit-only focus? - CORRECT
ANSWER-investors may receive a higher dividend payout
Valuation of assets utilizes: - CORRECT ANSWER-the present value model and
future expected cash flows
Agency theory describes: - CORRECT ANSWER-the potential conflicts between
the goals of management and that of shareholders
Fairness in financial management refers to all of the following with the exception
of: - CORRECT ANSWER-rewarding CEOs with excessive bonuses
The honesty of the management can be compromised under all the following
conditions with the exception of: - CORRECT ANSWER-when a manager
complies with regulatory rules
One way to align management's interest with that of shareholder's is: -
CORRECT ANSWER-granting stock options to management
Which if the following forms exposes all owners to unlimited liability? -
CORRECT ANSWER-both partnership and proprietorships
, Sole Proprietorship is characterized by all of the following except: - CORRECT
ANSWER-high organizational and operating costs
Select the pair of terms that indicates a correct match - CORRECT
ANSWER-proprietorship; personal taxation only
Markets that focus on short-term securities are: - CORRECT ANSWER-money
markets
Markets that focus on securities having life longer than one year are: -
CORRECT ANSWER-capital market
Which of the following statements is not correct about a firm laded with debt? -
CORRECT ANSWER-the firm is viewed by investors with high growth potentials
New common stock is sold by firms in the ________ market and individuals trade
securities in ________ market. - CORRECT ANSWER-primary; secondary
On January 1, 2018, total assets for Jahara Corp were $136,000; on December
31, 2018, total assets were $157,000. On January 1, 2018, total liabilities were
$110,000; on December 31, 2018, total liabilities were $118,000. What is the
amount of the change and the direction of the change in Wininger Technologies'
capital for 2019? - CORRECT ANSWER-increase of $13,000
In 1990, Dolomites Company purchased a building for $170,000. In 2020, a real
estate professional says the building has a fair value of $1,000,000. In 2020, a
similar building down the street recently sold for $900,000. What value, before
consideration of accumulated depreciation, is reported for the building on the
balance sheet at December 31, 2020? - CORRECT ANSWER-$170,000
The calculation of ending retained earnings considers the beginning retained
earnings, current period net income or net less, and subtracts dividends -
CORRECT ANSWER-True
The calculation of ending retained earnings considers the beginning retained
earnings, current period net income or net loss, and stockholder's equity -
CORRECT ANSWER-False
With good accounting knowledge, a financial manager can - CORRECT
ANSWER-understand financial data of the firm
Accounting can help financial managers: - CORRECT ANSWER-to interpret and
use financial information in allocating financial resources more efficiently
The field of finance is closely linked to: - CORRECT ANSWER-accounting and
economics
The goal of financial management is: - CORRECT ANSWER-to maximize
shareholder's wealth
Which of the following is not a drawback for profit-only focus? - CORRECT
ANSWER-investors may receive a higher dividend payout
Valuation of assets utilizes: - CORRECT ANSWER-the present value model and
future expected cash flows
Agency theory describes: - CORRECT ANSWER-the potential conflicts between
the goals of management and that of shareholders
Fairness in financial management refers to all of the following with the exception
of: - CORRECT ANSWER-rewarding CEOs with excessive bonuses
The honesty of the management can be compromised under all the following
conditions with the exception of: - CORRECT ANSWER-when a manager
complies with regulatory rules
One way to align management's interest with that of shareholder's is: -
CORRECT ANSWER-granting stock options to management
Which if the following forms exposes all owners to unlimited liability? -
CORRECT ANSWER-both partnership and proprietorships
, Sole Proprietorship is characterized by all of the following except: - CORRECT
ANSWER-high organizational and operating costs
Select the pair of terms that indicates a correct match - CORRECT
ANSWER-proprietorship; personal taxation only
Markets that focus on short-term securities are: - CORRECT ANSWER-money
markets
Markets that focus on securities having life longer than one year are: -
CORRECT ANSWER-capital market
Which of the following statements is not correct about a firm laded with debt? -
CORRECT ANSWER-the firm is viewed by investors with high growth potentials
New common stock is sold by firms in the ________ market and individuals trade
securities in ________ market. - CORRECT ANSWER-primary; secondary
On January 1, 2018, total assets for Jahara Corp were $136,000; on December
31, 2018, total assets were $157,000. On January 1, 2018, total liabilities were
$110,000; on December 31, 2018, total liabilities were $118,000. What is the
amount of the change and the direction of the change in Wininger Technologies'
capital for 2019? - CORRECT ANSWER-increase of $13,000
In 1990, Dolomites Company purchased a building for $170,000. In 2020, a real
estate professional says the building has a fair value of $1,000,000. In 2020, a
similar building down the street recently sold for $900,000. What value, before
consideration of accumulated depreciation, is reported for the building on the
balance sheet at December 31, 2020? - CORRECT ANSWER-$170,000
The calculation of ending retained earnings considers the beginning retained
earnings, current period net income or net less, and subtracts dividends -
CORRECT ANSWER-True
The calculation of ending retained earnings considers the beginning retained
earnings, current period net income or net loss, and stockholder's equity -
CORRECT ANSWER-False
