QUESTION The top financial manager in a firm often holds the title of chief financial officer (CFO). Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: The people responsible for planning and controlling the acquisition and uses of funds are called financial managers, and the top such manager in a firm […]
QUESTION Land is one example of a tangible asset. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Tangible assets are defined as land, buildings, and equipment.
QUESTION A financial plan always looks one year ahead. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: A financial plan may be as short as one month or as long as ten years.
QUESTION Cash flow forecasts are based on anticipated sales and on anticipated expenses. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Cash flow forecasts are predictions about how money will come in and go out of a firm in the near future. Such forecasts are based on anticipated sales and […]
QUESTION Operating budgets of production and sales are based on the sales budget. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: The other operating budgets indicate the labor, materials, and other costs required to produce that number of products and to sell them.
QUESTION A capital budget covers a month’s time, and it can only be reflected six months into the future. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: A capital budget covers a year’s time, and it can be reflected years into the future.
QUESTION Whether short term or long term, a loan may be secured or unsecured. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Both short-term and long-term loans can be either secured or unsecured loans.
QUESTION The only way for a firm to make use of its accounts receivable in order to generate short-term funds is by selling them. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: There are two ways firms can make use of their accounts receivable in order to generate short-term funds: […]
QUESTION Factoring is a very inexpensive way for firms to get a short-term infusion of funds. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Factoring is an expensive way for firms to get a short-term infusion of funds, but it provides an avenue for small businesses that may not qualify […]
QUESTION Which of the following, if true, supports the mother’s position? A) Julie has said that she wants to work for one of the Big Four accounting and professional services firms. B) The demand for government accountants is expected to grow in the near future. C) Two other recent grads in Julie’s class chose to […]
