Franklyn A Plus Pass
TEST BANK for Finance for Non-Financial
Managers, 7th Edition by Pierre Bergeron
All Chapters Covered 1-12| Verified Q&As for Exam
Preparations| A+ PASS GUARANTEED
Fr
an
k ly
ne
A
pl
us
Pa
Page | 1
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, Franklyn A Plus Pass
TABLE OF CONTENTS
CHAPTER 1 Overview of Financial Management 1-1
CHAPTER 2 Accounting and Financial Statements 2-1
CHAPTER 3 Statement of Cash Flows 3-1
CHAPTER 4 Financial Statement Analysis 4-1
CHAPTER 5 Profit Planning and Decision Making 5-1
CHAPTER 6 Working Capital Management 6-1
CHAPTER 7 Planning, Budgeting, and Controlling 7-1
CHAPTER 8 Sources and Forms of Financing 8-1
CHAPTER 9 Cost of Capital, Capital Structure, and Financial Markets 9-1
CHAPTER 10 Time-Value-of-Money Concept 10-1
CHAPTER 11 Capital Budgeting 11-1
CHAPTER 12 Business Valuation 12-1
Fr
MULTIPLE CHOICE
an
1. Which of the following statements describes an activity which is financial management?
a. Looking after trade payables and corporate accounting is not a responsibility of the controller.
k ly
b. Monitoring the profit for the year which is the difference between revenue and gross profit.
ne
c. The treasurer raising funds.
d. Ensuring that the cost of borrowing is greater than the return on assets.
A
ANS: C PTS: 1 REF: 11 OBJ: LO 2
pl
BLM: Higher Order
us
Pa
Page | 2
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, Franklyn A Plus Pass
2. Which of the following statements describes a financial management activity?
a. Arranging internal financing is obtained from banks and investors.
b. Ensuring liquidity by managing the payment of dividends.
c. Operating decisions dealing with better utilization of non-current assets.
d. The stability objective is related to the financial structure of a business.
ANS: DPTS: 1 REF: 15 OBJ: LO 4
BLM: Remember
3. Which of the following activities is NOT a financial management function?
a. The treasurer is responsible for corporate accounting.
b. External financing is obtained from investors.
c. Internal financing is obtained from retained earnings and depreciation/amortization.
d. Improving net profit through the use of productivity indicators and planned downsizing.
ANS: APTS: 1 REF: 11 OBJ: LO 3
BLM: Remember
4. What is the ultimate objective of financial management?
Fr
a. to ensure the ROA is higher than ROR
an
b. to obtain a higher ROR than ROA
c. to ensure that ROA is higher than the cost of financing
k ly
d. to collect trade receivables faster than the payment of trade and other payables
ne
ANS: C PTS: 1 REF: 7 OBJ: LO 2
BLM: Remember
A
pl
5. Which activity is the controller responsible for?
us
a. general accounting
Pa
Page | 3
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, Franklyn A Plus Pass
b. tax administration
c. investor relations
d. analyzing short- and long-term borrowing sources
ANS: APTS: 1 REF: 11 OBJ: LO 3
BLM: Remember
6. What is considered an "efficiency" financial objective?
a. the ability to meet short-term financial commitments
b. the ability minimize the cost of borrowed funds
c. the return on trade receivables
d. the return on revenue
ANS: DPTS: 1 REF: 13 OBJ: LO 4
BLM: Remember
7. What does the profit for the year pay for?
a. executive bonuses
b. interest on debt
Fr
c. dividends
an
d. employee salaries
ANS: C PTS: 1 REF: 17 OBJ: LO 5
k ly
BLM: Remember
ne
8. Which of the following is a source of internal financing?
A
a. revenue
pl
b. depreciation/amortization
us
c. mortgages
Pa
Page | 4
ss
TEST BANK for Finance for Non-Financial
Managers, 7th Edition by Pierre Bergeron
All Chapters Covered 1-12| Verified Q&As for Exam
Preparations| A+ PASS GUARANTEED
Fr
an
k ly
ne
A
pl
us
Pa
Page | 1
ss
, Franklyn A Plus Pass
TABLE OF CONTENTS
CHAPTER 1 Overview of Financial Management 1-1
CHAPTER 2 Accounting and Financial Statements 2-1
CHAPTER 3 Statement of Cash Flows 3-1
CHAPTER 4 Financial Statement Analysis 4-1
CHAPTER 5 Profit Planning and Decision Making 5-1
CHAPTER 6 Working Capital Management 6-1
CHAPTER 7 Planning, Budgeting, and Controlling 7-1
CHAPTER 8 Sources and Forms of Financing 8-1
CHAPTER 9 Cost of Capital, Capital Structure, and Financial Markets 9-1
CHAPTER 10 Time-Value-of-Money Concept 10-1
CHAPTER 11 Capital Budgeting 11-1
CHAPTER 12 Business Valuation 12-1
Fr
MULTIPLE CHOICE
an
1. Which of the following statements describes an activity which is financial management?
a. Looking after trade payables and corporate accounting is not a responsibility of the controller.
k ly
b. Monitoring the profit for the year which is the difference between revenue and gross profit.
ne
c. The treasurer raising funds.
d. Ensuring that the cost of borrowing is greater than the return on assets.
A
ANS: C PTS: 1 REF: 11 OBJ: LO 2
pl
BLM: Higher Order
us
Pa
Page | 2
ss
, Franklyn A Plus Pass
2. Which of the following statements describes a financial management activity?
a. Arranging internal financing is obtained from banks and investors.
b. Ensuring liquidity by managing the payment of dividends.
c. Operating decisions dealing with better utilization of non-current assets.
d. The stability objective is related to the financial structure of a business.
ANS: DPTS: 1 REF: 15 OBJ: LO 4
BLM: Remember
3. Which of the following activities is NOT a financial management function?
a. The treasurer is responsible for corporate accounting.
b. External financing is obtained from investors.
c. Internal financing is obtained from retained earnings and depreciation/amortization.
d. Improving net profit through the use of productivity indicators and planned downsizing.
ANS: APTS: 1 REF: 11 OBJ: LO 3
BLM: Remember
4. What is the ultimate objective of financial management?
Fr
a. to ensure the ROA is higher than ROR
an
b. to obtain a higher ROR than ROA
c. to ensure that ROA is higher than the cost of financing
k ly
d. to collect trade receivables faster than the payment of trade and other payables
ne
ANS: C PTS: 1 REF: 7 OBJ: LO 2
BLM: Remember
A
pl
5. Which activity is the controller responsible for?
us
a. general accounting
Pa
Page | 3
ss
, Franklyn A Plus Pass
b. tax administration
c. investor relations
d. analyzing short- and long-term borrowing sources
ANS: APTS: 1 REF: 11 OBJ: LO 3
BLM: Remember
6. What is considered an "efficiency" financial objective?
a. the ability to meet short-term financial commitments
b. the ability minimize the cost of borrowed funds
c. the return on trade receivables
d. the return on revenue
ANS: DPTS: 1 REF: 13 OBJ: LO 4
BLM: Remember
7. What does the profit for the year pay for?
a. executive bonuses
b. interest on debt
Fr
c. dividends
an
d. employee salaries
ANS: C PTS: 1 REF: 17 OBJ: LO 5
k ly
BLM: Remember
ne
8. Which of the following is a source of internal financing?
A
a. revenue
pl
b. depreciation/amortization
us
c. mortgages
Pa
Page | 4
ss
