The chief financial officer (CFO) is responsible for overseeing financial planning, corporate strategic planning, and controlling the firm’s cash flow. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The cash flow cycle: A) describes the flow of cash through a company. B) illustrates that profits and cash flows are the same. C) reminds a financial manager that profits are important. D) focuses on financing activities only. ANSWER A
Date: September 19th, 2020
If the future value of annuity A is greater than the future value of annuity B, then the present value of annuity A must also be greater than the present value of annuity B. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Determining how a firm should raise money to fund its long-term investments is referred to as capital structure decisions. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
All of the following are equity accounts on a balance sheet EXCEPT A) retained earnings. B) paid-in capital. C) cash. D) common stock. ANSWER C
Date: September 19th, 2020
Baker Corp is required by a debt agreement to maintain a current ratio of at least 2.5, and Baker’s current ratio now is 3. Baker wants to purchase additional inventory for its upcoming Christmas season, and will pay for the inventory with short-term debt. How much inventory can Baker purchase without violating its debt agreement […]
Date: September 19th, 2020
Which of the following statements about the replacement cost provision of the Homeowners 3 policy is true? A) It applies to personal property losses only. B) Except for small losses, the insured must repair or replace the damaged property in order to receive full replacement cost. C) The insured is required to carry an amount […]
Date: September 19th, 2020
A corporate treasurer is typically responsible for cash management, credit management, and raising capital. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Assume that an investment is forecasted to produce the following returns: a 20% probability of a 12% return; a 50% probability of a 16% return; and a 30% probability of a 19% return. What is the standard deviation of return for this investment? A) 5.89% B) 16.1% C) 15.7% D) 2.43% ANSWER D
Date: September 19th, 2020
The three basic types of cash-related activities that every business faces are: A) investing, working capital management, and financing. B) financing, operations, and investing. C) working capital management, financing, and budgeting. D) capital budgeting, investing, and cash management. ANSWER B
Date: September 19th, 2020
