Financial Management Exam with all Correct & 100%
Verified Answers |Already Graded A+
Net working capital is defined as: ✔Correct Answer-current assets minus current liabilities
The common set of standards and procedures by which audited financial statements are prepared is
known as the: ✔Correct Answer-Generally Accepted Accounting Principles
The percentage of the next dollar you earn that must be paid in taxes is referred to as: ✔Correct
Answer-The marginal tax rate
The cash flow related to interest payments less any new new borrowings is called the: ✔Correct
Answer-cash flow to creditors
Which one of the following statements concerning net working capital is correct? ✔Correct
Answer-Net working capital increases when inventory is sold for cash at a profit.
Which one of the following accounts is the most liquid? ✔Correct Answer-
Which one of these is most apt to be a fixed cost? ✔Correct Answer-
Which one of the following terms is denied as the management of a firm's long-term investments?
✔Correct Answer-capital budgeting
Which one of the following terms is defined as the mixture of a firms debt and equity finanacing?
✔Correct Answer-capital structure
Which one of the following is a capital structure decision? ✔Correct Answer-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 Answer-equipment purchase analysis
Which of the following are advantages of the corporate form of business ownership? ✔Correct
Answer-1) limited liability for firm debt
2) ability to raise capital
3) unlimited firm life
Which form of business structure is most associated with agency problems? ✔Correct Answer-
corporation
Decisions made by financial managers should primarily focus on increasing which one of the
following? ✔Correct Answer-market value per share of outstanding stock
Why should financial managers strive to maximize the current value per share of the existing stock?
✔Correct Answer-
Verified Answers |Already Graded A+
Net working capital is defined as: ✔Correct Answer-current assets minus current liabilities
The common set of standards and procedures by which audited financial statements are prepared is
known as the: ✔Correct Answer-Generally Accepted Accounting Principles
The percentage of the next dollar you earn that must be paid in taxes is referred to as: ✔Correct
Answer-The marginal tax rate
The cash flow related to interest payments less any new new borrowings is called the: ✔Correct
Answer-cash flow to creditors
Which one of the following statements concerning net working capital is correct? ✔Correct
Answer-Net working capital increases when inventory is sold for cash at a profit.
Which one of the following accounts is the most liquid? ✔Correct Answer-
Which one of these is most apt to be a fixed cost? ✔Correct Answer-
Which one of the following terms is denied as the management of a firm's long-term investments?
✔Correct Answer-capital budgeting
Which one of the following terms is defined as the mixture of a firms debt and equity finanacing?
✔Correct Answer-capital structure
Which one of the following is a capital structure decision? ✔Correct Answer-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 Answer-equipment purchase analysis
Which of the following are advantages of the corporate form of business ownership? ✔Correct
Answer-1) limited liability for firm debt
2) ability to raise capital
3) unlimited firm life
Which form of business structure is most associated with agency problems? ✔Correct Answer-
corporation
Decisions made by financial managers should primarily focus on increasing which one of the
following? ✔Correct Answer-market value per share of outstanding stock
Why should financial managers strive to maximize the current value per share of the existing stock?
✔Correct Answer-
