Finance Skills for Managers Exam Questions Answered Correctly Latest Version 2024-2025
Accounting - Answers System of recording, reporting, and summarizing financial information.
Accounts Receivable Turnover - Answers Ratio of credit sales to accounts receivable.
Activity Ratios - Answers Ratios measuring operational efficiency and profitability.
Additional Funds Needed - Answers Financing required for future growth.
Affirmative Covenants - Answers Bond terms protecting bondholders.
Agency Costs - Answers Costs from management not acting in shareholders' interest.
Agency Problem - Answers Conflict when management doesn't prioritize owners.
Aggressive Assets - Answers Companies or securities with beta > 1.
Annual Percentage Rate - Answers Yearly interest rate for borrowing or investing.
Annuity - Answers Equal cash flows paid at regular intervals.
Annuity Due - Answers Series of equal payments at period start.
Asset Pricing - Answers Valuation process for assets.
Auction Market - Answers Secondary market with physical location.
Average Collection Period - Answers Days in a year divided by AR turnover.
Balance Sheet Forecasting - Answers Using forecasts to create pro forma balance sheets.
Banks and Credit Unions - Answers Institutions accepting deposits and extending loans.
Benchmarking - Answers Financial analysis to compare performance.
Beta - Answers Variable showing security price movement with market.
Bid-ask Spread - Answers Difference between bid and ask prices.
Board of Directors - Answers Group supervising organizational activities.
Bond Indenture - Answers Contract governing firm-bondholder relationship.
Bondholders - Answers Individuals lending to corporations.
Business Finance - Answers Area focusing on funding and value maximization.
Cannibalization - Answers Sales reduction due to new similar products.
, Capital - Answers Financial assets for business use.
Capital Asset Pricing Model - Answers Model for asset risk-return relationship.
Capital Budgeting - Answers Evaluation and planning for long-term assets.
Capital Budgeting Criteria - Answers Metrics to assess project value.
Capital Investment - Answers Money invested in long-term assets.
Capital Markets - Answers Market for assets held over a year.
Capital Structure - Answers Debt-equity mix for firm financing.
Capital-constrained Environment - Answers Limited fund availability scenario.
Cash Budgets - Answers Plan for managing cash inflows and outflows.
Cash Management - Answers Day-to-day finance operations oversight.
Central Banks - Answers Economic stability regulators controlling money supply.
Common Stock - Answers Equity stock with voting rights.
Compounding - Answers Calculating future value from present value.
Compounding Interest - Answers Interest on principal and earned interest.
Corporate Bonds - Answers Debt instrument for capital raising.
Corporate Governance - Answers System directing firm activities.
Correlation - Answers Measure of variable relationship.
Cost of Capital - Answers Firm's cost for investor capital use.
Coupon Rate - Answers Stated bond interest rate.
Coupon Yield - Answers Stated bond interest rate.
Covenants - Answers Bond indenture obligations.
Credit Analysts - Answers Bank professionals assessing lending risk.
Cross-sectional Analysis - Answers Comparing financial ratios.
Cumulative - Answers Preferred stock dividend payment feature.
Current Market Value - Answers Present asset value.
Accounting - Answers System of recording, reporting, and summarizing financial information.
Accounts Receivable Turnover - Answers Ratio of credit sales to accounts receivable.
Activity Ratios - Answers Ratios measuring operational efficiency and profitability.
Additional Funds Needed - Answers Financing required for future growth.
Affirmative Covenants - Answers Bond terms protecting bondholders.
Agency Costs - Answers Costs from management not acting in shareholders' interest.
Agency Problem - Answers Conflict when management doesn't prioritize owners.
Aggressive Assets - Answers Companies or securities with beta > 1.
Annual Percentage Rate - Answers Yearly interest rate for borrowing or investing.
Annuity - Answers Equal cash flows paid at regular intervals.
Annuity Due - Answers Series of equal payments at period start.
Asset Pricing - Answers Valuation process for assets.
Auction Market - Answers Secondary market with physical location.
Average Collection Period - Answers Days in a year divided by AR turnover.
Balance Sheet Forecasting - Answers Using forecasts to create pro forma balance sheets.
Banks and Credit Unions - Answers Institutions accepting deposits and extending loans.
Benchmarking - Answers Financial analysis to compare performance.
Beta - Answers Variable showing security price movement with market.
Bid-ask Spread - Answers Difference between bid and ask prices.
Board of Directors - Answers Group supervising organizational activities.
Bond Indenture - Answers Contract governing firm-bondholder relationship.
Bondholders - Answers Individuals lending to corporations.
Business Finance - Answers Area focusing on funding and value maximization.
Cannibalization - Answers Sales reduction due to new similar products.
, Capital - Answers Financial assets for business use.
Capital Asset Pricing Model - Answers Model for asset risk-return relationship.
Capital Budgeting - Answers Evaluation and planning for long-term assets.
Capital Budgeting Criteria - Answers Metrics to assess project value.
Capital Investment - Answers Money invested in long-term assets.
Capital Markets - Answers Market for assets held over a year.
Capital Structure - Answers Debt-equity mix for firm financing.
Capital-constrained Environment - Answers Limited fund availability scenario.
Cash Budgets - Answers Plan for managing cash inflows and outflows.
Cash Management - Answers Day-to-day finance operations oversight.
Central Banks - Answers Economic stability regulators controlling money supply.
Common Stock - Answers Equity stock with voting rights.
Compounding - Answers Calculating future value from present value.
Compounding Interest - Answers Interest on principal and earned interest.
Corporate Bonds - Answers Debt instrument for capital raising.
Corporate Governance - Answers System directing firm activities.
Correlation - Answers Measure of variable relationship.
Cost of Capital - Answers Firm's cost for investor capital use.
Coupon Rate - Answers Stated bond interest rate.
Coupon Yield - Answers Stated bond interest rate.
Covenants - Answers Bond indenture obligations.
Credit Analysts - Answers Bank professionals assessing lending risk.
Cross-sectional Analysis - Answers Comparing financial ratios.
Cumulative - Answers Preferred stock dividend payment feature.
Current Market Value - Answers Present asset value.
