Business Finance 1st Quarter (Quarterly)

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Which attribute is NOT mentioned as a characteristic of competent managers?

People-oriented

Decisive

Visionary

Innovative (correct)

What is the role of financial management?

To maximize the value of shareholders' wealth (correct)

To make decisions for the company

To manage the company's finances

To attract foreign investors

What are economic conditions?

The prospects of the industry where the company operates

The state of the economy in a country or region (correct)

The flow of foreign funds invested in the stock market

The decisions made by financial managers

What is the goal of financial management?

To maximize the value of shares of stocks Signup and view all the answers

What is the impact of financial management decisions on the market?

They affect the market's perception of the company and influence the share price Signup and view all the answers

Which of the following attributes is NOT mentioned as a characteristic of competent managers?

Analytical Signup and view all the answers

What is the impact of economic conditions on businesses?

They determine the success or failure of a business Signup and view all the answers

What is the goal of financial management?

To maximize the value of shareholders' wealth Signup and view all the answers

Which factor is NOT mentioned as an uncontrollable or external factor affecting businesses?

Prospects of the industry Signup and view all the answers

What is the role of financial management in relation to the market's perception of a company?

Financial management decisions directly influence the share price Signup and view all the answers

According to the text, which of the following is NOT mentioned as an attribute of competent managers?

People-oriented Signup and view all the answers

According to the text, which of the following is NOT mentioned as an uncontrollable or external factor affecting businesses?

Prospects of the industry Signup and view all the answers

According to the text, what is the goal of financial management?

To maximize the value of shareholders' wealth Signup and view all the answers

According to the text, what do financial management decisions ultimately affect?

The market's perception of the company Signup and view all the answers

According to the text, what is the role of financial management in relation to the market's perception of a company?

To ultimately affect the market's perception of the company Signup and view all the answers

Which type of financial instrument has priority over common stock in terms of claims over a company's assets?

Preferred Stock Signup and view all the answers

In a company's liquidation, when are assets distributed to common stockholders?

After all the claims of preferred stockholders have been given Signup and view all the answers

When are cash dividends given to common stockholders?

After all the dividends due to preferred stockholders are paid first Signup and view all the answers

Which financial market enables suppliers and users of short-term funds to create a financial relationship?

Money Markets Signup and view all the answers

What do mutual funds do when they invest in debt or equity securities already held by investors?

They transfer ownership of the securities among investors Signup and view all the answers

Which type of financial instrument has priority over common stock in terms of claims over a company's assets?

Preferred Stock Signup and view all the answers

What is the purpose of a primary market?

To issue new securities Signup and view all the answers

What do insurance companies do with the premiums they receive from policyholders?

Invest in various securities Signup and view all the answers

What do mutual funds do when they invest in debt or equity securities already held by investors?

Transfer ownership of the securities among investors Signup and view all the answers

What do pension funds do with the payments they receive from employees?

Invest in various securities Signup and view all the answers

Which type of financial instrument has priority over common stock in terms of claims over a company's assets?

Preferred Stock Signup and view all the answers

What is the purpose of a primary market?

To issue new securities Signup and view all the answers

What do insurance companies do with the premiums they receive from policyholders?

Invest in various securities Signup and view all the answers

What do mutual funds do when they invest in newly issued debt or equity securities?

Finance new investment by firms Signup and view all the answers

What do pension funds do with the payments they receive from employees?

Invest the proceeds on behalf of employees Signup and view all the answers

Which of the following is NOT a responsibility of the VP for Marketing?

Identifying adequate and cheap raw material suppliers Signup and view all the answers

What are the four functions of the VP for Finance?

Financing, Investing, Operating, Dividend Policies Signup and view all the answers

What is the role of the VP for Administration?

Coordinating the functions of administration, finance, and marketing departments Signup and view all the answers

Which condition must exist for a company to declare cash dividends?

The company must have enough retained earnings (accumulated profits) to support cash dividend declaration Signup and view all the answers

What is the purpose of long-term investing for a company?

To prepare a capital budgeting analysis to determine if the long term investment will be profitable Signup and view all the answers

Which of the following is NOT a responsibility of the VP for Administration?

Coordinating the functions of administration, finance, and marketing departments. Signup and view all the answers

What is the role of a financial manager in determining cash dividends?

To determine when the company should declare cash dividends. Signup and view all the answers

What is the purpose of short-term investing for a company?

To secure the best profits from excess cash. Signup and view all the answers

What is the role of the VP for Marketing in relation to market and competitor analysis?

To perform market and competitor analysis. Signup and view all the answers

Which factor is mentioned as an uncontrollable or external factor affecting businesses?

Economic conditions Signup and view all the answers

Which of the following is NOT a responsibility of the VP for Marketing?

Conducting or directing research that will allow the company identifies new marketing opportunities Signup and view all the answers

Which of the following is NOT a responsibility of the VP for Production?

Coming up with a production plan that maximizes the utilization of the company’s production facilities Signup and view all the answers

Which of the following is NOT a responsibility of the VP for Administration?

Coordinating the functions of administration, finance, and marketing departments Signup and view all the answers

Which of the following is NOT one of the four functions of the VP for Finance?

Marketing Signup and view all the answers

Which of the following is NOT a condition that must exist for a company to declare cash dividends?

The company must have outstanding debt Signup and view all the answers

Which of the following statements is true about adjusting entries?

Adjusting entries are recognized at the end of each accounting period. Signup and view all the answers

What is the purpose of preparing an adjusted trial balance?

To ensure that the total debit balances equal the credit balances after adjusting entries. Signup and view all the answers

Which financial statements can be prepared from the adjusted trial balance?

Statement of financial position, statement of profit or loss, and statement of cash flows. Signup and view all the answers

What happens to revenue and expense account balances during the closing entries?

They are transferred to an account called Income Summary Account. Signup and view all the answers

What is the purpose of preparing a post-closing trial balance?

To ensure that the total debit balances equal the credit balances after closing entries. Signup and view all the answers

Which of the following statements is true about adjusting entries?

Adjusting entries are recognized at the end of each accounting period. Signup and view all the answers

What is the purpose of a post-closing trial balance?

To test if the debit balances equal the credit balances after the closing entries are considered. Signup and view all the answers

What happens to the balance of the Income Summary Account during the closing entries?

The balance of the Income Summary Account is transferred to the retained earnings account. Signup and view all the answers

When are assets distributed to common stockholders in a company's liquidation?

After the liquidation process. Signup and view all the answers

What are the financial statements that can be prepared from the adjusted trial balance?

Statement of financial position, statement of profit or loss, and statement of cash flows. Signup and view all the answers

Which financial statements are prepared from the adjusted trial balance?

Statement of financial position, statement of profit or loss, and statement of cash flows Signup and view all the answers

When are cash dividends given to common stockholders?

When the company has a net income Signup and view all the answers

What happens to revenue and expense account balances during the closing entries?

Revenue account balances are transferred to an account called Income Summary Account Signup and view all the answers

What is the purpose of preparing an adjusted trial balance?

To ensure that the total debit balances equal the credit balances after posting and journalizing adjusting entries Signup and view all the answers

Which accounts are shown in the post-closing trial balance?

Permanent or real accounts Signup and view all the answers

Which ratio measures a company's ability to generate revenues for every peso of asset invested?

Total Asset Turnover Ratio Signup and view all the answers

Which ratio measures the company's efficiency in managing its inventories?

Inventory Turnover Ratio Signup and view all the answers

Which ratio measures the company's ability to pay maturing obligations from its current assets?

Current Ratio Signup and view all the answers

Which ratio provides information if a company has enough operating income to cover interest expenses?

Interest Coverage Ratio Signup and view all the answers

Which ratio measures the efficiency by which account receivable are managed?

Accounts Receivable Turnover Ratio Signup and view all the answers

Which ratio measures how much net profit a company generates for every peso of sales or revenues that it generates?

Net Profit Margin Signup and view all the answers

Which ratio measures the company's ability to generate revenues for every peso of asset invested?

Total Asset Turnover Ratio Signup and view all the answers

Which ratio measures the company's efficiency in managing its inventories?

Inventory Turnover Ratio Signup and view all the answers

Which ratio measures the company's ability to pay maturing obligations from its current assets?

Current Ratio Signup and view all the answers

Which ratio provides information regarding the rate by which trade payables are paid?

Accounts Payable Turnover Ratio Signup and view all the answers

Which ratio measures the ability of a company to pay maturing obligations from its current assets?

Current Ratio Signup and view all the answers

Which ratio is a stricter measure of a company’s liquidity position?

Quick Ratio Signup and view all the answers

Which ratio measures how much of the total assets are financed by liabilities?

Debt Ratio Signup and view all the answers

Which ratio provides information if a company has enough operating income to cover interest expenses?

Interest Coverage Ratio Signup and view all the answers

Which ratio measures the company’s ability to generate revenues for every peso of asset invested?

Total Asset Turnover Ratio Signup and view all the answers

Which of the following is a correct statement about photosynthesis?

Photosynthesis is the process by which plants convert carbon dioxide into glucose. Signup and view all the answers

Which of the following is a characteristic of a mammal?

Nurses its young with milk Signup and view all the answers

Which of the following is a renewable energy source?

Solar power Signup and view all the answers

Which of the following is a function of the respiratory system?

Taking in oxygen and removing carbon dioxide Signup and view all the answers

Business Finance 1st Quarter (Quarterly)

Podcast Beta

Questions and Answers

Which attribute is NOT mentioned as a characteristic of competent managers?

What is the role of financial management?

What are economic conditions?

What is the goal of financial management?

What is the impact of financial management decisions on the market?

Which of the following attributes is NOT mentioned as a characteristic of competent managers?

What is the impact of economic conditions on businesses?

What is the goal of financial management?

Which factor is NOT mentioned as an uncontrollable or external factor affecting businesses?

What is the role of financial management in relation to the market's perception of a company?

According to the text, which of the following is NOT mentioned as an attribute of competent managers?

According to the text, which of the following is NOT mentioned as an uncontrollable or external factor affecting businesses?

According to the text, what is the goal of financial management?

According to the text, what do financial management decisions ultimately affect?

According to the text, what is the role of financial management in relation to the market's perception of a company?

Which type of financial instrument has priority over common stock in terms of claims over a company's assets?

In a company's liquidation, when are assets distributed to common stockholders?

When are cash dividends given to common stockholders?

Which financial market enables suppliers and users of short-term funds to create a financial relationship?

What do mutual funds do when they invest in debt or equity securities already held by investors?

Which type of financial instrument has priority over common stock in terms of claims over a company's assets?

What is the purpose of a primary market?

What do insurance companies do with the premiums they receive from policyholders?

What do mutual funds do when they invest in debt or equity securities already held by investors?

What do pension funds do with the payments they receive from employees?

Which type of financial instrument has priority over common stock in terms of claims over a company's assets?

What is the purpose of a primary market?

What do insurance companies do with the premiums they receive from policyholders?

What do mutual funds do when they invest in newly issued debt or equity securities?

What do pension funds do with the payments they receive from employees?

Which of the following is NOT a responsibility of the VP for Marketing?

What are the four functions of the VP for Finance?

What is the role of the VP for Administration?

Which condition must exist for a company to declare cash dividends?

What is the purpose of long-term investing for a company?

Which of the following is NOT a responsibility of the VP for Administration?

What is the role of a financial manager in determining cash dividends?

What is the purpose of short-term investing for a company?

What is the role of the VP for Marketing in relation to market and competitor analysis?

Which factor is mentioned as an uncontrollable or external factor affecting businesses?

Which of the following is NOT a responsibility of the VP for Marketing?

Which of the following is NOT a responsibility of the VP for Production?

Which of the following is NOT a responsibility of the VP for Administration?

Which of the following is NOT one of the four functions of the VP for Finance?

Which of the following is NOT a condition that must exist for a company to declare cash dividends?

Which of the following statements is true about adjusting entries?

What is the purpose of preparing an adjusted trial balance?

Which financial statements can be prepared from the adjusted trial balance?

What happens to revenue and expense account balances during the closing entries?

What is the purpose of preparing a post-closing trial balance?

Which of the following statements is true about adjusting entries?

What is the purpose of a post-closing trial balance?

What happens to the balance of the Income Summary Account during the closing entries?

When are assets distributed to common stockholders in a company's liquidation?

What are the financial statements that can be prepared from the adjusted trial balance?

Which financial statements are prepared from the adjusted trial balance?

When are cash dividends given to common stockholders?

What happens to revenue and expense account balances during the closing entries?

What is the purpose of preparing an adjusted trial balance?

Which accounts are shown in the post-closing trial balance?

Which ratio measures a company's ability to generate revenues for every peso of asset invested?

Which ratio measures the company's efficiency in managing its inventories?

Which ratio measures the company's ability to pay maturing obligations from its current assets?

Which ratio provides information if a company has enough operating income to cover interest expenses?

Which ratio measures the efficiency by which account receivable are managed?

Which ratio measures how much net profit a company generates for every peso of sales or revenues that it generates?

Which ratio measures the company's ability to generate revenues for every peso of asset invested?

Which ratio measures the company's efficiency in managing its inventories?

Which ratio measures the company's ability to pay maturing obligations from its current assets?

Which ratio provides information regarding the rate by which trade payables are paid?

Which ratio measures the ability of a company to pay maturing obligations from its current assets?

Which ratio is a stricter measure of a company’s liquidity position?

Which ratio measures how much of the total assets are financed by liabilities?

Which ratio provides information if a company has enough operating income to cover interest expenses?

Which ratio measures the company’s ability to generate revenues for every peso of asset invested?

Which of the following is a correct statement about photosynthesis?

Which of the following is a characteristic of a mammal?