1.
Award: 10.00 points
The controller, rather than the treasurer, is typically responsible for which one of the following
functions?
Depositing cash receipts
Processing cost reports
Analyzing equipment purchases
Approving credit for a customer
Paying a vendor
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 1 Basic Section: 1.1 Finance:
A Quick Look
2.
Award: 10.00 points
Usually, the treasurer of a corporation reports directly to the:
board of directors.
chair of the board.
chief executive officer.
president.
vice president of finance.
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 1 Basic Section: 1.1 Finance:
A Quick Look
3.
Award: 10.00 points
In a typical corporate organizational structure:
the vice president of finance reports to the chair of the board.
the chief executive officer reports to the president.
the controller reports to the chief financial officer.
the treasurer reports to the president.
the chief operations officer reports to the vice president of production.
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 1 Basic Section: 1.1 Finance:
A Quick Look
4.
Award: 10.00 points
Which one of the following questions involves a capital budgeting decision?
How many shares of stock should the firm issue?
Should the firm purchase a new machine for the production line?
Should the firm borrow money to acquire new equipment?
How much inventory should the firm keep on hand?
How much money should be kept in the checking account?
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 2
Intermediate
Section: 1.1 Finance:
A Quick Look
5.
Award: 10.00 points
When evaluating the timing of a project’s projected cash flows, a financial manager is analyzing:
the amount of each expected cash flow.
only the start-up costs that are expected to require cash resources.
only the date of the final cash flow related to the project.
the amount by which cash receipts are expected to exceed cash outflows.
when each cash flow is expected to occur.
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 2
Intermediate
Section: 1.1 Finance:
A Quick Look
6.
Award: 10.00 points
Which one of the following questions involves a capital structure decision?
Which one of two project proposals should the firm implement?
How should the firm allocate its limited available funds among acceptable projects?
How much funding should be allocated to financing customer purchases of a new
product?
How much debt should the firm incur to fund a project?
How much inventory will be needed to support a project?
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 2
Intermediate
Section: 1.1 Finance:
A Quick Look
7.
Award: 10.00 points
Determining the number of shares of stock to issue is an example of a ______ decision.
capital rationing
net working capital
capital budgeting
capital allocation
capital structure
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 1 Basic Section: 1.1 Finance:
A Quick Look
8.
Award: 10.00 points
Which one of the following questions is a working capital management decision?
Should the company issue new shares of stock or borrow money?
Should the company refurbish its equipment or replace it?
Award: 10.00 points
The controller, rather than the treasurer, is typically responsible for which one of the following
functions?
Depositing cash receipts
Processing cost reports
Analyzing equipment purchases
Approving credit for a customer
Paying a vendor
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 1 Basic Section: 1.1 Finance:
A Quick Look
2.
Award: 10.00 points
Usually, the treasurer of a corporation reports directly to the:
board of directors.
chair of the board.
chief executive officer.
president.
vice president of finance.
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 1 Basic Section: 1.1 Finance:
A Quick Look
3.
Award: 10.00 points
In a typical corporate organizational structure:
the vice president of finance reports to the chair of the board.
the chief executive officer reports to the president.
the controller reports to the chief financial officer.
the treasurer reports to the president.
the chief operations officer reports to the vice president of production.
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 1 Basic Section: 1.1 Finance:
A Quick Look
4.
Award: 10.00 points
Which one of the following questions involves a capital budgeting decision?
How many shares of stock should the firm issue?
Should the firm purchase a new machine for the production line?
Should the firm borrow money to acquire new equipment?
How much inventory should the firm keep on hand?
How much money should be kept in the checking account?
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 2
Intermediate
Section: 1.1 Finance:
A Quick Look
5.
Award: 10.00 points
When evaluating the timing of a project’s projected cash flows, a financial manager is analyzing:
the amount of each expected cash flow.
only the start-up costs that are expected to require cash resources.
only the date of the final cash flow related to the project.
the amount by which cash receipts are expected to exceed cash outflows.
when each cash flow is expected to occur.
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 2
Intermediate
Section: 1.1 Finance:
A Quick Look
6.
Award: 10.00 points
Which one of the following questions involves a capital structure decision?
Which one of two project proposals should the firm implement?
How should the firm allocate its limited available funds among acceptable projects?
How much funding should be allocated to financing customer purchases of a new
product?
How much debt should the firm incur to fund a project?
How much inventory will be needed to support a project?
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 2
Intermediate
Section: 1.1 Finance:
A Quick Look
7.
Award: 10.00 points
Determining the number of shares of stock to issue is an example of a ______ decision.
capital rationing
net working capital
capital budgeting
capital allocation
capital structure
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 1 Basic Section: 1.1 Finance:
A Quick Look
8.
Award: 10.00 points
Which one of the following questions is a working capital management decision?
Should the company issue new shares of stock or borrow money?
Should the company refurbish its equipment or replace it?