,Chapter 1 - Foundations
1. Which of the following is not one of the three major areas of finance?
a. Accounting
b. Investments and financial markets
c. Financial management of companies
d. The banking system
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Finance and Accounting
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 7/1/2015 11:26 AM
2. Financial assets can be distinguished from real assets in that financial assets:
a. are pieces of paper rather than tangible, physical objects.
b. are not intended to provide services like transportation or shelter.
c. have value because they provide their owners with claims to future cash flows.
d. All of the above
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Finance and Accounting
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/22/2015 9:50 AM
3. Financial assets:
a. include cars, houses, and factory equipment.
b. provide some kind of service.
c. have value because of claims to future cash flows.
d. are not legal documents.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
Copyright Cengage Learning. Powered by Cognero. Page 1
,Chapter 1 - Foundations
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Assets
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/22/2015 9:51 AM
4. Financial assets like stocks and bonds have value because:
a. they represent ownership of companies.
b. people are proud to own them.
c. they provide tangible benefits as do real assets.
d. they give their owners command over future cash flows.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Assets
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/22/2015 10:08 AM
5. A ____ pools the contributions of many investors and employs a professional manager to select securities that match a
particular set of investment goals.
a. mutual fund
b. stock
c. bond
d. real asset
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Assets
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/22/2015 10:09 AM
6. Which of the following is not a real asset?
a. Equipment
Copyright Cengage Learning. Powered by Cognero. Page 2
, Chapter 1 - Foundations
b.
Land
c.
Stock
d.
None of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Assets
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/22/2015 10:12 AM
7. The prices that investors pay for securities are determined by:
a. The collateral of the firm's liabilities and the profitability of the firm.
b. The profits of the firm and the stability of those profits.
c. What financial advisors think of the company.
d. The cash flows investors expect to receive from owning them.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Assets
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/22/2015 10:20 AM
8. Which of the following represents a real asset?
a. Land
b. Bonds
c. Stocks
d. Both a & c
e. All of the above
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
Copyright Cengage Learning. Powered by Cognero. Page 3
1. Which of the following is not one of the three major areas of finance?
a. Accounting
b. Investments and financial markets
c. Financial management of companies
d. The banking system
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Finance and Accounting
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 7/1/2015 11:26 AM
2. Financial assets can be distinguished from real assets in that financial assets:
a. are pieces of paper rather than tangible, physical objects.
b. are not intended to provide services like transportation or shelter.
c. have value because they provide their owners with claims to future cash flows.
d. All of the above
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Finance and Accounting
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/22/2015 9:50 AM
3. Financial assets:
a. include cars, houses, and factory equipment.
b. provide some kind of service.
c. have value because of claims to future cash flows.
d. are not legal documents.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
Copyright Cengage Learning. Powered by Cognero. Page 1
,Chapter 1 - Foundations
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Assets
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/22/2015 9:51 AM
4. Financial assets like stocks and bonds have value because:
a. they represent ownership of companies.
b. people are proud to own them.
c. they provide tangible benefits as do real assets.
d. they give their owners command over future cash flows.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Assets
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/22/2015 10:08 AM
5. A ____ pools the contributions of many investors and employs a professional manager to select securities that match a
particular set of investment goals.
a. mutual fund
b. stock
c. bond
d. real asset
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Assets
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/22/2015 10:09 AM
6. Which of the following is not a real asset?
a. Equipment
Copyright Cengage Learning. Powered by Cognero. Page 2
, Chapter 1 - Foundations
b.
Land
c.
Stock
d.
None of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Assets
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/22/2015 10:12 AM
7. The prices that investors pay for securities are determined by:
a. The collateral of the firm's liabilities and the profitability of the firm.
b. The profits of the firm and the stability of those profits.
c. What financial advisors think of the company.
d. The cash flows investors expect to receive from owning them.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
NATIONAL STANDARDS: BUSPROG: Analytic - BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Assets
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/22/2015 10:20 AM
8. Which of the following represents a real asset?
a. Land
b. Bonds
c. Stocks
d. Both a & c
e. All of the above
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.01.02 - Finance and Accounting
Copyright Cengage Learning. Powered by Cognero. Page 3
