Financial management

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 dolla...

An _________ covers how the day-to-day operating expenses, ie. labor and supplies, and revenue will occur; a n _________ covers expensive equipment whose usefulness will last over many years. - correct answer Operating budget; capital budget. Healthcare organizations use cost accounting and docum...

goal of financial management - correct answer maximize stock price, maximize shareholder wealth agency problems - correct answer managers are supposed to act as agents on behalf of shareholders but own < 100% of the outstanding common stock what makes managers act in shareholders best inter...

A bond is similar to a loan T or F - correct answer True A bond is a debt instrument issued by corporations or governments. - correct answer True A syndicate is a group of investors that is temporarily formed to handle the issuance of new bonds. - correct answer True If the price of a parti...

four basic areas of finance - correct answer 1. corporate finance 2. investments 3. financial institutions 4. international finance identify and describe types of financial management decisions - correct answer - capital budgeting = planning and managing LT investments - capital structure = m...

Which of the following represent cash outflows from a corporation? - correct answer Payment of dividends & Payment of government taxes Which of the following are cash flows from a corporation into financial markets? - correct answer Repayment of long- term debt, payment of loan interest, & paymen...

An example of a capital budgeting decision is deciding: - correct answer whether or not to purchase a new machine for the production line. Capital structure decisions include determining: - correct answer how much debt should be assumed to fund a project. Which one of the following questions i...

Which one of the following terms is defined as the mixture of a firm's debt and equity financing? - correct answer Capital Structure Which one of the following is defined as a firm's short-term assets and its short-term liabilities? - correct answer Working Capital Which one of the following...

The daily financial operating of a firm are primarily controlled by managing the - correct answer working capital Bing Gardens Inc. has an inventory turnover of 16. This means the firm - correct answer sells its inventory an average of 16 times each year A firm created as a separate and distin...

The daily financial operating of a firm are primarily controlled by managing the - correct answer working capital Bing Gardens Inc. has an inventory turnover of 16. This means the firm - correct answer sells its inventory an average of 16 times each year A firm created as a separate and distin...

What proportion of earnings is being plowed back into the firm if the sustainable growth rate is 8% and the firm's ROE is 20%? a. 60% b. 80% c. 20% d. 40% - correct answer d. 40% 8% = 20% × plowback; Plowback = 40% A firm has 120,000 shares of stock outstanding, a sustainable rate of gro...

Basic areas of finance - correct answer corporate, financial institutions, investments, international investments - correct answer works with financial assets: stocks and bonds, risk vs return and asset allocation financial institutions - correct answer companies that specialize in financial m...

Ch. 01 Introduction to Corporate Finance - correct answer :) What is corporate finance? - correct answer the area of finance dealing with the sources of funding and the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the...

Some important questions that are answered using finance: - correct answer -What long-term investments should the firm take on? -Where will we get the long-term financing (borrowing) to pay for the investment? Will we bring in other owners or will we borrow the money? (Ex. Apple just borrowed 14 ...