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18 Student: _______________________________________________________________________________________ True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False True False 1. Finance is the function in a business that acquires funds for the firm and manages those funds within the firm. 2. Managing a firm's resources so that it can meet its goals and objectives is the goal of financial accounting. 3. A financial manager makes recommendations to top executives regarding strategies for improving the financial strength of a firm. 4. The duties and responsibilities of a financial manager are virtually identical to the duties and responsibilities of an accountant. 5. Financial managers use data prepared by accountants to develop strategies for improving the financial performance of the firm. 6. There is actually a stronger relationship between finance and marketing than there is between finance and accounting. 7. Financial managers examine the data prepared by accountants and make recommendations to top management regarding strategies for improving the financial performance of the company. 8. Financial management is more important for a large firm than it is for a small firm. 9. The chief financial officer (CFO) is responsible for accounting and financial functions. 10. The chief financial officer of a company is responsible for managing cash, accounts receivable, and inventory. 11. While finance is a critical activity for profit-seeking organizations, by definition nonprofit organizations are not required to fulfill the finance function. 12. One activity of the accounting function is to collect payments from overdue customer accounts. 13. A comptroller is responsible for the acquiring and managing of funds for an organization. 14. Inability to attract and retain qualified employees is one of the most common ways for a firm to fail financially. 15. Financial managers are responsible for controlling cash flows. 16. Undercapitalization refers to the problem of insufficient start-up funds. 17. Investors and entrepreneurs should have an understanding of financial issues. 18. Financial managers are responsible for budgeting, auditing, and advising top management on financial matters. 19. One of the most common ways for a firm to fail financially is poor control over cash flow. 20. Inadequate control of expenses represents a common financial problem that contributes to business failure. 21. A comptroller is the chief accounting officer of an organization. 22. Tax payments are important to the finance manager because they represent a cash inflow to a firm. ... View Full Document

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