FINA 3332 - Top Hat Questions Latest
Exam with Correct Answers 2026
Updated.
The finance function is relatively independent of most other corporate functions. -
CORRECTANSWER False
In general, the role of the financial manager is to plan for the acquisition and use of
funds so as to maximize the value of the firm -CORRECTANSWER True
A proprietorship is an unincorporated business owned by one individual and the owner
benefits from the limited liability for business, which limits his losses to what he has
invested in the company -CORRECTANSWER False
Two key limitations of the proprietorship form of business involve potential difficulty in
raising the necessary capital and the presence of unlimited personal liability for
business debts -CORRECTANSWER True
In the United States, the most common form of business is the ______________, and
the form of business that generates most of the sales and profits is the
______________. -CORRECTANSWER proprietorship; corporation
, The management's primary goal is stockholder wealth maximization, which, translates
into -CORRECTANSWER maximizing the value of the firm
Which of the following financial statements includes information about a firm's assets,
equity, and liabilities? -CORRECTANSWER Balance Sheet
Which of the following is an example of a current asset? -CORRECTANSWER Cash
and cash equivalents
In which order will assets be listed in a balance sheet? -CORRECTANSWER In
decreasing order of liquidity
The information contained in the financial statements is used by investors to form an
impression as to the state of the company's financial health. -CORRECTANSWER True
The balance sheet is a financial statement measuring the flow of funds into and out of
various accounts over time. -CORRECTANSWER False
Ruby Enterprises Ltd. has long-term debt of $20 million, retained earnings of $45
million, accounts payable of $10 million, notes payable of $12 million, and inventory
worth $18 million. What is the value of total liabilities of Ruby Enterprises? -
CORRECTANSWER 42 million
Exam with Correct Answers 2026
Updated.
The finance function is relatively independent of most other corporate functions. -
CORRECTANSWER False
In general, the role of the financial manager is to plan for the acquisition and use of
funds so as to maximize the value of the firm -CORRECTANSWER True
A proprietorship is an unincorporated business owned by one individual and the owner
benefits from the limited liability for business, which limits his losses to what he has
invested in the company -CORRECTANSWER False
Two key limitations of the proprietorship form of business involve potential difficulty in
raising the necessary capital and the presence of unlimited personal liability for
business debts -CORRECTANSWER True
In the United States, the most common form of business is the ______________, and
the form of business that generates most of the sales and profits is the
______________. -CORRECTANSWER proprietorship; corporation
, The management's primary goal is stockholder wealth maximization, which, translates
into -CORRECTANSWER maximizing the value of the firm
Which of the following financial statements includes information about a firm's assets,
equity, and liabilities? -CORRECTANSWER Balance Sheet
Which of the following is an example of a current asset? -CORRECTANSWER Cash
and cash equivalents
In which order will assets be listed in a balance sheet? -CORRECTANSWER In
decreasing order of liquidity
The information contained in the financial statements is used by investors to form an
impression as to the state of the company's financial health. -CORRECTANSWER True
The balance sheet is a financial statement measuring the flow of funds into and out of
various accounts over time. -CORRECTANSWER False
Ruby Enterprises Ltd. has long-term debt of $20 million, retained earnings of $45
million, accounts payable of $10 million, notes payable of $12 million, and inventory
worth $18 million. What is the value of total liabilities of Ruby Enterprises? -
CORRECTANSWER 42 million
