Financial Management Exam Questions
With All Correct Answers 2025 Latest
Update
Net working capital is defined as: CORRECT ANSWERS current assets minus current
liabilities
The common set of standards and procedures by which audited financial statements
are prepared is known as the: CORRECT ANSWERS Generally Accepted Accounting
Principles
The percentage of the next dollar you earn that must be paid in taxes is referred to as:
CORRECT ANSWERS The marginal tax rate
The cash flow related to interest payments less any new new borrowings is called the:
CORRECT ANSWERS cash flow to creditors
Which one of the following statements concerning net working capital is correct?
CORRECT ANSWERS Net working capital increases when inventory is sold for cash at
a profit.
Which one of the following accounts is the most liquid? CORRECT ANSWERS
Which one of these is most apt to be a fixed cost? CORRECT ANSWERS
Which one of the following terms is denied as the management of a firm's long-term
investments? CORRECT ANSWERS capital budgeting
Which one of the following terms is defined as the mixture of a firms debt and equity
finanacing? CORRECT ANSWERS capital structure
Which one of the following is a capital structure decision? CORRECT ANSWERS
determining the amount of funds needed to finance customer purchases of a new
product.
Which one of the following functions should be the responsibility of the controller rather
than the treasurer? CORRECT ANSWERS equipment purchase analysis
Which of the following are advantages of the corporate form of business ownership?
CORRECT ANSWERS 1) limited liability for firm debt
2) ability to raise capital
3) unlimited firm life
With All Correct Answers 2025 Latest
Update
Net working capital is defined as: CORRECT ANSWERS current assets minus current
liabilities
The common set of standards and procedures by which audited financial statements
are prepared is known as the: CORRECT ANSWERS Generally Accepted Accounting
Principles
The percentage of the next dollar you earn that must be paid in taxes is referred to as:
CORRECT ANSWERS The marginal tax rate
The cash flow related to interest payments less any new new borrowings is called the:
CORRECT ANSWERS cash flow to creditors
Which one of the following statements concerning net working capital is correct?
CORRECT ANSWERS Net working capital increases when inventory is sold for cash at
a profit.
Which one of the following accounts is the most liquid? CORRECT ANSWERS
Which one of these is most apt to be a fixed cost? CORRECT ANSWERS
Which one of the following terms is denied as the management of a firm's long-term
investments? CORRECT ANSWERS capital budgeting
Which one of the following terms is defined as the mixture of a firms debt and equity
finanacing? CORRECT ANSWERS capital structure
Which one of the following is a capital structure decision? CORRECT ANSWERS
determining the amount of funds needed to finance customer purchases of a new
product.
Which one of the following functions should be the responsibility of the controller rather
than the treasurer? CORRECT ANSWERS equipment purchase analysis
Which of the following are advantages of the corporate form of business ownership?
CORRECT ANSWERS 1) limited liability for firm debt
2) ability to raise capital
3) unlimited firm life
