QUESTION Which of the following probably would NOT be used as collateral against a secured loan? A) a car B) jewelry C) a piece of land D) cash E) a home ANSWER Answer: D Explanation: D) Personal property is usually used as collateral against a secured loan. This might be in the form of […]
Date: September 3rd, 2020
QUESTION Spartan Furniture wants to identify its sales and production goals and the costs required to meet those goals. Which type of budget does it need? A) capital budget B) cash budget C) master budget D) operating budget E) discretionary budget ANSWER Answer: D Explanation: D) Operating budgets identify a firm’s sales and production […]
Date: September 3rd, 2020
QUESTION Which two types of budgets are referred to as financial budgets? A) capital budgets and cash budgets B) capital budgets and operating budgets C) cash budgets and operating budgets D) cash budgets and master budgets E) master budgets and operating budgets ANSWER Answer: A Explanation: A) Capital budgets and cash budgets are called […]
Date: September 3rd, 2020
QUESTION Spartan Furniture wants to estimate its expenditures for purchasing long-term assets that require significant sums of money. Which type of budget does it need? A) capital budget B) cash budget C) master budget D) operating budget E) discretionary budget ANSWER Answer: A Explanation: A) Capital budgets estimate a firm’s expenditures for purchasing long-term […]
Date: September 3rd, 2020
QUESTION Spartan Furniture’s controller wants to show managers where the firm may have shortages or surpluses of funds throughout the year so that they can anticipate when they may have to borrow money. Which type of budget does he need? A) capital budget B) cash budget C) master budget D) operating budget E) discretionary budget […]
Date: September 3rd, 2020
QUESTION What is the job of acquiring and managing funds called? A) financial prediction B) financial management C) sales forecasting D) budgeting E) bookkeeping ANSWER Answer: B Explanation: B) The job of acquiring and managing funds is called financial management.
Date: September 3rd, 2020
QUESTION Which of the following is considered an intangible asset? A) a plot of land B) a downtown building C) oven equipment in a restaurant D) an office supply company delivery truck E) the copyright on a book ANSWER Answer: E Explanation: E) Tangible assets are defined as land, buildings, and equipment. Intangible assets […]
Date: September 3rd, 2020
QUESTION Which of the following best defines risk-return trade-off? A) overseeing the collection of money owed B) the job of acquiring and managing funds in order to accomplish the firm’s objectives C) the balancing of the firm’s investment exposure with the expected payoffs from its investments D) a prediction about how money will come in […]
Date: September 3rd, 2020
QUESTION What is the chief purpose of the process known as financial control? A) to tie together the different types of budgets to present the company’s overall plan B) to identify deviations from the financial plan so that corrective action can be taken C) to identify a firm’s sales and production goals and specify the […]
Date: September 3rd, 2020
QUESTION Kent is the financial manager for a downtown department store. Which of the following is NOT one of the roles he assumes? A) oversee bill payment B) minimize taxes C) monitor accounting D) set interest rates on loans E) oversee collection of money owed ANSWER Answer: D Explanation: D) Financial managers oversee bill […]
Date: September 3rd, 2020
