Chap 16 questions

Chap 16 questions - Chapter 16 Financial Management and...

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Chapter 16 Financial Management and Securities Markets True/False Questions T F 1. One aspect of financial management involves managing funds for a business. Answer: True Difficulty: Easy Page: 343 Learning Objective: 1 Bloom’s Taxonomy: Knowledge T F 2. A lockbox is a technique for getting cash into a business's account faster. Answer: True Difficulty: Medium Page: 346 Learning Objective: 1 Bloom’s Taxonomy: Knowledge T F 3. A marketable security is a temporary investment of cash. Answer: True Difficulty: Easy Page: 346 Learning Objective: 1 Bloom’s Taxonomy: Knowledge T F 4. Commercial paper is issued by large companies and backed by collateral. Answer: False Difficulty: Easy Page: 346-347 Learning Objective: 1 Bloom’s Taxonomy: Knowledge T F 5. Eurodollar deposits can only be made at banks located in London. Answer: False Difficulty: Easy Page: 347 Learning Objective: 1 Bloom’s Taxonomy: Knowledge Multiple Choice Questions 6. Overall, financial management primarily involves acquiring and managing A) equity. B) funds. C) liabilities. D) inventory. E) employees. Answer: B Difficulty: Easy Page: 343 Learning Objective: 1 Bloom’s Taxonomy: Knowledge
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7. In the area of short-term assets and liabilities, a word that is synonymous with "short term" is A) minimal. B) current. C) small. D) least. E) fiat. Answer: B Difficulty: Medium Page: 345 Learning Objective: 1 Bloom’s Taxonomy: Knowledge 8. Cash, marketable securities, accounts receivable, and inventory are also known as A) current assets. B) current liabilities. C) long-term assets. D) long-term liabilities. E) fixed assets. Answer: A Difficulty: Easy Page: 345 Learning Objective: 1 Bloom’s Taxonomy: Knowledge 9. Current assets include all of the following except A) accounts receivable. B) accounts payable. C) marketable securities. D) inventory. E) cash. Answer: B Difficulty: Medium Page: 345 Learning Objective: 1 Bloom’s Taxonomy: Knowledge 10. Short-term debt obligations that must be repaid within a year are A) long-term assets. B) long-term liabilities. C) current liabilities. D) current assets. E) fixed liabilities. Answer: C Difficulty: Medium Page: 345-346 Learning Objective: 1 Bloom’s Taxonomy: Knowledge 11. All of the following are current liabilities except A) taxes payable. B) wages payable. C) accounts payable. D) marketable securities. E) accrued salaries. Answer: D Difficulty: Medium Page: 345 Learning Objective: 1 Bloom’s Taxonomy: Knowledge
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12. If a financial manager focuses on monitoring and influencing the company's current assets and liabilities, he or she is involved with A) working capital. B) current accounts. C) long-term financing. D) debt resolution. E) savings enhancement. Answer: A
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This note was uploaded on 01/25/2011 for the course BUSN 101 taught by Professor Finnin during the Fall '07 term at Drexel.

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Chap 16 questions - Chapter 16 Financial Management and...

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