BCOR 2204 FINANCE QUIZ 1 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. financial services
Answer:
concerned with design and delivery of advice and financial products to
individuals, businesses, and governments
Question:
2. managerial finance involves...
Answer:
tasks such as budgeting, financial forecasting, cash management, and funds
procurement
Question:
3. profit maximization as the "goal" of the firm is BAD
because...
Answer:
profit maximization DOES NOT consider risk
Question:
4. Pro-active ethics program is expected to result in...
Answer:
a positive corporate image and increased respect, a reduction in risk, and
enhanced cash flow resulting in an increase in share price
Question:
5. The Board of Directors is responsible for...
Answer:
approving strategic goals and plans
Question:
6. The agency problem may result from a manager's
concerns about...
Answer:
job security
, Question:
7. The profitability ratios are...
Answer:
primarily used as measures of return
Question:
8. current ratios are usually between
Answer:
1 and 2
-high current ratio: a lot of money
Question:
9. Inventory Turnover Ratio may...
Answer:
indicate firm is experiencing stockout and lost sales
Question:
10. Inventory Turnover Ratio measures...
Answer:
the activity, or liquidity, of a firm's stock of goods
Question:
11. Total Asset Turnover indicates...
Answer:
the efficiency with which the firm uses its assets to generate sales
Question:
12. Example: Gross profit margin is inferior to the industry
standard. This may have resulted from...
Answer:
the high cost of goods sold
GPM: sales-COGS
Question:
13. What is a cash inflow?
Answer:
a decrease in accounts receivable
QUESTIONS AND CORRECT ANSWERS
Question:
1. financial services
Answer:
concerned with design and delivery of advice and financial products to
individuals, businesses, and governments
Question:
2. managerial finance involves...
Answer:
tasks such as budgeting, financial forecasting, cash management, and funds
procurement
Question:
3. profit maximization as the "goal" of the firm is BAD
because...
Answer:
profit maximization DOES NOT consider risk
Question:
4. Pro-active ethics program is expected to result in...
Answer:
a positive corporate image and increased respect, a reduction in risk, and
enhanced cash flow resulting in an increase in share price
Question:
5. The Board of Directors is responsible for...
Answer:
approving strategic goals and plans
Question:
6. The agency problem may result from a manager's
concerns about...
Answer:
job security
, Question:
7. The profitability ratios are...
Answer:
primarily used as measures of return
Question:
8. current ratios are usually between
Answer:
1 and 2
-high current ratio: a lot of money
Question:
9. Inventory Turnover Ratio may...
Answer:
indicate firm is experiencing stockout and lost sales
Question:
10. Inventory Turnover Ratio measures...
Answer:
the activity, or liquidity, of a firm's stock of goods
Question:
11. Total Asset Turnover indicates...
Answer:
the efficiency with which the firm uses its assets to generate sales
Question:
12. Example: Gross profit margin is inferior to the industry
standard. This may have resulted from...
Answer:
the high cost of goods sold
GPM: sales-COGS
Question:
13. What is a cash inflow?
Answer:
a decrease in accounts receivable
