Finance 3716 LSU exam 1 Chapter 1-4
questions with correct answers
Chief |Financial |Officer |- |✔✔The |top |financial |manager |within |a |firm
Treasurer |- |✔✔Oversees |cash |management, |credit |management, |capital |expenditures, |financial |
planning
Controller |- |✔✔Oversees |taxes, |cost |accounting |financial |accounting |and |data |processing
Sole |proprietorship |- |✔✔a |form |of |Business |Organization: |single |ownership
Advantages: |Easiest |to |start, |Least |regulated, |Single |owner |keeps |all |the |profits, |Taxed |once |as |
personal |income
Partnership |- |✔✔A |form |of |Business |Organization: |General, |Limited
Advantages: |Two |or |more |owners, |More |capital |available, |Relatively |easy |to |start, |Income |taxed |once |
as |personal |income
Corporation |- |✔✔A |form |of |Business |Organization: |C-Corporation, |S-Corporation, |Limited |Liability |
Company |(LLC)
Advantages: |Limited |Liability, |Unlimited |life, |Separation |of |ownership |and |management, |Transfer |of |
ownership |is |easy, |Easier |to |raise |capital
Maximize |shareholder |value |- |✔✔What |is |the |primary |goal |of |a |corporation?
Book |Value |- |✔✔The |balance |sheet |provides |the |_______ |of |the |assets, |liabilities, |and |equity
Market |Value |- |✔✔______ |is |the |price |at |which |the |assets, |liabilities, |or |equity |can |actually |be |
bought |or |sold
Marginal |Tax |Rate |- |✔✔The |tax |rate |you |would |pay |if |you |had |one |more |taxable |dollar
Average |Tax |Rate |- |✔✔The |tax |rate |you |are |paying |on |all |of |your |taxable |income |which |averages |
across |all |of |your |corporate |tax |categories
Cash |flow |- |✔✔_____ |is |one |of |the |most |important |pieces |of |info |that |a |financial |manager |can |derive
|from |financial |statements
Sources |of |Cash |- |✔✔Cash |inflow. |Decrease |in |asset |account |(accounts |receivable, |inventory, |and |net
|fixed |assets). |Increase |in |liability |or |equity |account |(accounts |payable, |other |current |liabilities, |and |
common |stock).
Uses |of |Cash |- |✔✔Cash |outflow. |Increase |in |asset |account |(Cash |and |other |current |assets). |Decrease |
in |liability |or |equity |account |(Notes |payable |and |long-term |debt).
questions with correct answers
Chief |Financial |Officer |- |✔✔The |top |financial |manager |within |a |firm
Treasurer |- |✔✔Oversees |cash |management, |credit |management, |capital |expenditures, |financial |
planning
Controller |- |✔✔Oversees |taxes, |cost |accounting |financial |accounting |and |data |processing
Sole |proprietorship |- |✔✔a |form |of |Business |Organization: |single |ownership
Advantages: |Easiest |to |start, |Least |regulated, |Single |owner |keeps |all |the |profits, |Taxed |once |as |
personal |income
Partnership |- |✔✔A |form |of |Business |Organization: |General, |Limited
Advantages: |Two |or |more |owners, |More |capital |available, |Relatively |easy |to |start, |Income |taxed |once |
as |personal |income
Corporation |- |✔✔A |form |of |Business |Organization: |C-Corporation, |S-Corporation, |Limited |Liability |
Company |(LLC)
Advantages: |Limited |Liability, |Unlimited |life, |Separation |of |ownership |and |management, |Transfer |of |
ownership |is |easy, |Easier |to |raise |capital
Maximize |shareholder |value |- |✔✔What |is |the |primary |goal |of |a |corporation?
Book |Value |- |✔✔The |balance |sheet |provides |the |_______ |of |the |assets, |liabilities, |and |equity
Market |Value |- |✔✔______ |is |the |price |at |which |the |assets, |liabilities, |or |equity |can |actually |be |
bought |or |sold
Marginal |Tax |Rate |- |✔✔The |tax |rate |you |would |pay |if |you |had |one |more |taxable |dollar
Average |Tax |Rate |- |✔✔The |tax |rate |you |are |paying |on |all |of |your |taxable |income |which |averages |
across |all |of |your |corporate |tax |categories
Cash |flow |- |✔✔_____ |is |one |of |the |most |important |pieces |of |info |that |a |financial |manager |can |derive
|from |financial |statements
Sources |of |Cash |- |✔✔Cash |inflow. |Decrease |in |asset |account |(accounts |receivable, |inventory, |and |net
|fixed |assets). |Increase |in |liability |or |equity |account |(accounts |payable, |other |current |liabilities, |and |
common |stock).
Uses |of |Cash |- |✔✔Cash |outflow. |Increase |in |asset |account |(Cash |and |other |current |assets). |Decrease |
in |liability |or |equity |account |(Notes |payable |and |long-term |debt).
