BFIN Final Exam UPDATED ACTUAL Questions and CORRECT Answers
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BFIN
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BFIN
BFIN Final Exam UPDATED ACTUAL
Questions and CORRECT Answers
With good accounting knowledge, a financial manager can - CORRECT ANSWER-
understand financial data of the firm
Accounting can help financial managers: - CORRECT ANSWER- to interpret and use
financial information in allocating fin...
BFIN Final Exam UPDATED ACTUAL
Questions and CORRECT Answers
With good accounting knowledge, a financial manager can - CORRECT ANSWER✔✔-
understand financial data of the firm
Accounting can help financial managers: - CORRECT ANSWER✔✔- to interpret and use
financial information in allocating financial resources more efficiently
The field of finance is closely linked to: - CORRECT ANSWER✔✔- accounting and
economics
The goal of financial management is: - CORRECT ANSWER✔✔- to maximize
shareholder's wealth
Which of the following is not a drawback for profit-only focus? - CORRECT ANSWER✔✔-
investors may receive a higher dividend payout
Valuation of assets utilizes: - CORRECT ANSWER✔✔- the present value model and future
expected cash flows
Agency theory describes: - CORRECT ANSWER✔✔- the potential conflicts between the
goals of management and that of shareholders
Fairness in financial management refers to all of the following with the exception of: -
CORRECT ANSWER✔✔- rewarding CEOs with excessive bonuses
The honesty of the management can be compromised under all the following conditions with
the exception of: - CORRECT ANSWER✔✔- when a manager complies with regulatory
rules
One way to align management's interest with that of shareholder's is: - CORRECT
ANSWER✔✔- granting stock options to management
,Which if the following forms exposes all owners to unlimited liability? - CORRECT
ANSWER✔✔- both partnership and proprietorships
Sole Proprietorship is characterized by all of the following except: - CORRECT
ANSWER✔✔- high organizational and operating costs
Select the pair of terms that indicates a correct match - CORRECT ANSWER✔✔-
proprietorship; personal taxation only
Markets that focus on short-term securities are: - CORRECT ANSWER✔✔- money markets
Markets that focus on securities having life longer than one year are: - CORRECT
ANSWER✔✔- capital market
Which of the following statements is not correct about a firm laded with debt? - CORRECT
ANSWER✔✔- the firm is viewed by investors with high growth potentials
New common stock is sold by firms in the ________ market and individuals trade securities
in ________ market. - CORRECT ANSWER✔✔- primary; secondary
On January 1, 2018, total assets for Jahara Corp were $136,000; on December 31, 2018, total
assets were $157,000. On January 1, 2018, total liabilities were $110,000; on December 31,
2018, total liabilities were $118,000. What is the amount of the change and the direction of
the change in Wininger Technologies' capital for 2019? - CORRECT ANSWER✔✔- increase
of $13,000
In 1990, Dolomites Company purchased a building for $170,000. In 2020, a real estate
professional says the building has a fair value of $1,000,000. In 2020, a similar building
down the street recently sold for $900,000. What value, before consideration of accumulated
depreciation, is reported for the building on the balance sheet at December 31, 2020? -
CORRECT ANSWER✔✔- $170,000
The calculation of ending retained earnings considers the beginning retained earnings, current
period net income or net less, and subtracts dividends - CORRECT ANSWER✔✔- True
, The calculation of ending retained earnings considers the beginning retained earnings, current
period net income or net loss, and stockholder's equity - CORRECT ANSWER✔✔- False
The financial statement that reflects the profitability of a firm over a period of the time is the:
- CORRECT ANSWER✔✔- income statement
The statement of cash flows identifies the sources and uses of the firm's cash: - CORRECT
ANSWER✔✔- between the beginning and the year end of the fiscal period
the statement of cash flows is composed of cash flow from operations, cash flow from
financing activities, and: - CORRECT ANSWER✔✔- cash flow from investing activities
Earnings that are retained: - CORRECT ANSWER✔✔- are used to purchase assets, pay
liabilities and other expenses
The value of a firm's land as a result of a golf course being built in the adjacent property: -
CORRECT ANSWER✔✔- is an increase in value to an economist
Accounting values are established primarily by: - CORRECT ANSWER✔✔- actual
transactions
To an accountant, income that is gained or lost during a given period is: - CORRECT
ANSWER✔✔- verifiable
The economists' value concept: - CORRECT ANSWER✔✔- does not include sunk costs
The balance sheet assets may include all except - CORRECT ANSWER✔✔- contingent
liabilities
Investors reflect the value changes of company's assets or liabilities by: - CORRECT
ANSWER✔✔- raising or lowering the market share prices
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