FINANCIAL MANAGEMENT EXAM QUESTIONS AND ANSWERS 100% CORRECT!!

The percentage of the next dollar you earn that must be paid in taxes is referred to as: - ANSWER The marginal tax rate The cash flow related to interest payments less any new new borrowings is called the: - ANSWER cash flow to creditors Which one of the following statements concerning net working capital is correct? - ANSWER Net working capital increases when inventory is sold for cash at a profit. Which one of the following accounts is the most liquid? - ANSWER Which one of these is most apt to be a fixed cost? - ANSWER Which one of the following terms is denied as the management of a firm's long-term investments? - ANSWER capital budgeting Which one of the following terms is defined as the mixture of a firms debt and equity finanacing? - ANSWER capital structure Which one of the following is a capital structure decision? - ANSWER determining the amount of funds needed to finance customer purchases of a new product. Which one of the following functions should be the responsibility of the controller rather than the treasurer? - ANSWER equipment purchase analysis Which of the following are advantages of the corporate form of business ownership? - ANSWER 1) limited liability for firm debt 2) ability to raise capital