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    Financial Management Source 3

    Uploaded by

    John Llucastre Cortez
    This document contains 10 multiple choice questions from a finance quiz. The questions cover topics like financial management, profit maximization, current ratios, and window dressing financial statements. The quiz taker has not yet answered any of the questions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Financial Management Source 3

    Uploaded by

    John Llucastre Cortez
    70 views4 pages
    This document contains 10 multiple choice questions from a finance quiz. The questions cover topics like financial management, profit maximization, current ratios, and window dressing financial statements. The quiz taker has not yet answered any of the questions.

    Original Description:

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    This document contains 10 multiple choice questions from a finance quiz. The questions cover topics like financial management, profit maximization, current ratios, and window dressing financial statements. The quiz taker has not yet answered any of the questions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    70 views4 pages

    Financial Management Source 3

    Uploaded by

    John Llucastre Cortez
    This document contains 10 multiple choice questions from a finance quiz. The questions cover topics like financial management, profit maximization, current ratios, and window dressing financial statements. The quiz taker has not yet answered any of the questions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    11/16/2018 Quiz 001

    Question 1 This is concerned with the acquisition, financing, and management of assets with some overall goal in mind. Its decision
    Not yet function includes areas such as investment, financing, and asset management decisions
    answered

    Marked out of Select one:


    1.00
    Managerial Accounting

    Financial Management

    Financial Concern
    Financial Accounting

    Question 2 Which of the following can increase net profit margin?


    Not yet
    answered
    Select one:
    Marked out of
    1.00
    Buy merchandise
    none of these

    Sell merchandise with 20% discount


    Sell merchandise with 20% mark-up from the original price

    Question 3 Stennett Corp.’s CFO has proposed that the company made a new debt and used the proceeds to buy equipment. Which of
    Not yet the following is likely to occur if this proposal is adopted?
    answered
    Marked out of Select one:
    1.00
    Inventory turnover will increase.
    Return on Assets (ROA) will decline.

    Gross profit margin will increase.

    Income will decline.

    https://blended.amauonline.com/mod/quiz/attempt.php?attempt=31793963 1/4
    11/16/2018 Quiz 001
    Question 4 Which of the following statements is true?
    Not yet
    answered
    Select one:
    Marked out of
    The finance manager must posses knowledge in the areas of accounting, finance, economics and management.
    1.00
    A financial manager just delegates the responsibilities to his people and just wait for the results.

    One of the benefits of being a financial manager is that you can get funds in the business entity without prior
    approval.
    All of the statements are correct.

    Question 5 Company A’s ROE is 20 percent, while Company B’s ROE is 15 percent. Which of the following statements can be true?
    Not yet
    answered
    Select one:
    Marked out of
    Company A and company B have equal amount of Assets
    1.00
    Company A and Company B have the same amount of Liability.

    None of these
    Company A and Company B have equal amount of Equity.

    Question 6 Which of the following alternatives could potentially increase current ratio?
    Not yet
    answered
    Select one:
    Marked out of
    1.00
    none of these

    Bought merchandise using cash available.

    Bought merchandise on account


    Retired damaged equipment.

    https://blended.amauonline.com/mod/quiz/attempt.php?attempt=31793963 2/4
    11/16/2018 Quiz 001
    Question 7 Which is not included in the group
    Not yet
    answered
    Select one:
    Marked out of
    1.00
    Savings Promotion

    Interrelation with Other Departments

    Cash Management
    Forecasting Financial Requirements

    Question 8 This is concerned with the increase in revenue and decrease in costs and expenses
    Not yet
    answered
    Select one:
    Marked out of
    1.00
    Expense minimization
    Revenue maximization

    Wealth maximization

    Profit maximization

    Question 9 All else being equal, which of the following will increase a company’s current ratio?
    Not yet
    answered
    Select one:
    Marked out of
    1.00
    An increase in accounts payable.
    None of the statements can increase the current ratio

    An increase in net fixed assets.


    An increase in accounts receivable.

    https://blended.amauonline.com/mod/quiz/attempt.php?attempt=31793963 3/4
    11/16/2018 Quiz 001
    Question 10 Sexy Corporation’s current ratio is 0.5, while Coke Company’s current ratio is 1.5. Both firms want to “window dress” their
    Not yet coming end-of-year financial statements. As part of its window dressing strategy, each firm will double its current liabilities by
    answered
    adding short-term debt and placing the funds obtained in the cash account. Which of the statements below best describes the
    Marked out of actual results of these transactions?
    1.00

    Select one:
    Only Sexy Corporation’s current ratio will be increased.

    The current ratios of both firms will be decreased.

    The current ratios of both firms will be increased.


    The transactions will have no effect on the current ratios.

    https://blended.amauonline.com/mod/quiz/attempt.php?attempt=31793963 4/4

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