Browse over 20 million
homework answers & study documents

Business

FIN 200 Final Exam Version 5.docxFIN 200 Final Exam Version 5.docxFIN 200 Final Exam Version 5.docxF

Type

Exam Practice

Rating

Showing Page:
1/11
1) Maximization of shareholder wealth is a concept in which
A. increased earnings is of primary importance.
B. optimally increasing the long-term value of the firm is emphasized.
C. virtually all earnings are paid as dividends to common stockholders.
D. profits are maximized on a quarterly basis.
2) Corporate governance is the
A. relationship and exercise of oversight by the board of directors of the
company.
B. governance of the company by the board of directors with a focus on social
responsibility.
C. operation of a company by the chief executive officer (CEO) and other
senior executives on the management team.
D. relationship between the chief financial officer and institutional investors.
3) What is the primary goal of financial management?
A. Increased earnings
B. Maximizing shareholder wealth
C. Minimizing risk of the firm
D. Maximizing cash flow
4) The statement of cash flows does NOT include which of the following sections?
A. cash flows from operating activities
B. cash flows from investing activities
C. cash flows from financing activities
D. cash flows from sales activities
5) Which of the following is an inflow of cash?
A. funds spent in normal business operations
B. the sale of the firm's bonds
C. the purchase of a new factory
D. the retirement of the firm's bonds
6) An increase in investments in long-term securities will:
A. increase cash flow from investing activities.
B. increase cash flow from financing activities.
C. decrease cash flow from investing activities.
D. decrease cash flow from financing activities.
7) The most rigorous test of a firm's ability to pay its short-term obligations is its
A. current ratio.
B. debt-to-assets ratio.

Sign up to view the full document!

lock_open Sign Up
C. quick ratio.
D. times-interest-earned ratio.
8) A quick ratio that is much smaller than the current ratio reflects
A. a small portion of current assets is in inventory.
B. that the firm will have a high inventory turnover.
C. a large portion of current assets is in inventory.
D. that the firm will have a high return on assets.
9) In examining the liquidity ratios, the primary emphasis is the firm's
A. ability to effectively employ its resources.
B. ability to pay short-term obligations on time.
C. overall debt position.
D. ability to earn an adequate return.
10) A firm has current assets of $75,000 and total assets of $375,000. The firm's sales are
$900,000. The firm's fixed asset turnover is
A. 3.0x
B. 2.4x
C. 12.0x
D. 5.0x

Sign up to view the full document!

lock_open Sign Up

Sign up to view the full document!

lock_open Sign Up

Anonymous
Had to paraphrase some of the content but overall, really useful material.

Anonymous
Heard about Studypool for a while and finally tried it. Glad I did caus this was really helpful.

Anonymous
Just what I needed… fantastic!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4