Achieve Academic Excellence with the [Principles of Managerial Finance,Gitman,14e] 2023 Test Bank

Principles of Managerial Finance, 14e (Gitman/Zutter)

Chapter 1 The Role of Managerial Finance



1.1 Define finance and the managerial finance function.



1) A financial analyst is responsible for maintaining and controlling a firm's daily cash
balances.

Answer: FALSE

Diff: 1

Topic: Career Opportunities in Finance

Learning Obj.: LG 1

Learning Outcome: F-01

Question Status: Revised

AACSB Tag: Analytic Skills



2) Finance is concerned with the process institutions, markets, and instruments involved
in the transfer of money among and between individuals, businesses, and government.

Answer: TRUE

Diff: 1

Topic: What is Finance?

Learning Obj.: LG 1

Learning Outcome: F-01

Question Status: Previous Edition

AACSB Tag: Analytic Skills



3) Financial managers administer the financial affairs of all types of businesses such as

,private and public, large and small, and profit seeking and not for profit.

Answer: TRUE

Diff: 1

Topic: Career Opportunities in Finance

Learning Obj.: LG 1

Learning Outcome: F-01

Question Status: New

AACSB Tag: Analytic Skills



4) Financial managers perform different tasks developing a financial plan or budget,
extending credit to customers, evaluating proposed large expenditures, and raising money
to fund a firm's operations.

Answer: TRUE

Diff: 1

Topic: Career Opportunities in Finance

Learning Obj.: LG 1

Learning Outcome: F-01

Question Status: New

AACSB Tag: Analytic Skills

,5) A capital expenditures analyst/manager is responsible for the evaluation and
recommendation of proposed asset investments.

Answer: TRUE

Diff: 1

Topic: Career Opportunities in Finance

Learning Obj.: LG 1

Learning Outcome: F-01

Question Status: Revised

AACSB Tag: Analytic Skills

6) A controller administers a firm's credit policy by analyzing or managing the evaluation
of credit applications, extending credit, and monitoring and collecting accounts
receivable.

Answer: FALSE

Diff: 1

Topic: Career Opportunities in Finance

Learning Obj.: LG 1

Learning Outcome: F-01

Question Status: Revised

AACSB Tag: Analytic Skills



7) In large companies, CEOs are legally responsible for coordinating the assets and
liabilities of the employees' pension fund.

Answer: FALSE

Diff: 1

Topic: Career Opportunities in Finance

Learning Obj.: LG 1

, Learning Outcome: F-01

Question Status: Revised

AACSB Tag: Analytic Skills



8) A controller typically handles the accounting activities, such as tax management, data
processing, financial accounting, and cost accounting.

Answer: TRUE

Diff: 1

Topic: Career Opportunities in Finance

Learning Obj.: LG 1

Learning Outcome: F-01

Question Status: Revised

AACSB Tag: Analytic Skills