Nature vs Nuture
PRINCIPLES OF FINANCE
PRACTICE TEST 1
1. Finance can be defined as
A. the system of debits and credits.
B. the science of the production, distribution, and consumption of wealth.
C. the art and science of managing money.
D. the art of merchandising products and services.
2. Managerial finance
A. involves tasks such as budgeting, financial forecasting, cash management, and funds procurement.
B. involves the design and delivery of advice and financial products.
C. recognizes funds on an accrual basis.
D. devotes the majority of its attention to the collection and presentation of financial data.
3. The accountant recognizes revenues and expenses on
A. a cash basis.
B. a revenue basis.
C. an accrual basis.
D. an expense basis.
4. The financial manager recognizes revenues and expenses utilizing
A. the accrual method.
B. the actual inflows and outflows of cash.
C. the standardized, generally accepted, accounting principles.
D. the revenue method.
5. The key role of the financial manager is
A. decision making.
B. the presentation of financial statements.
C. the preparation of data for future evaluation.
D. the collection of financial data.
6. Making financing decisions includes all of the following EXCEPT
A. determining the appropriate mix of shortterm and longterm financing.
B. deciding which individual shortterm sources are best at a given point in time.
C. analyzing quarterly budget and performance reports.
D. deciding which individual longterm sources are best at a given point in time.
7. The financial manager 's investment decisions determine
A. both the mix and the type of assets found on the firm 's balance sheet.
B. both the mix and the type of liabilities found on the firm 's balance sheet.
C. both the mix and the type of assets and liabilities found on the firm 's balance sheet.
D. both the mix and the type of shortterm and longterm financing.
8. The primary goal of the financial manager is
A. minimizing risk.
B.
PRACTICE TEST 1
1. Finance can be defined as
A. the system of debits and credits.
B. the science of the production, distribution, and consumption of wealth.
C. the art and science of managing money.
D. the art of merchandising products and services.
2. Managerial finance
A. involves tasks such as budgeting, financial forecasting, cash management, and funds procurement.
B. involves the design and delivery of advice and financial products.
C. recognizes funds on an accrual basis.
D. devotes the majority of its attention to the collection and presentation of financial data.
3. The accountant recognizes revenues and expenses on
A. a cash basis.
B. a revenue basis.
C. an accrual basis.
D. an expense basis.
4. The financial manager recognizes revenues and expenses utilizing
A. the accrual method.
B. the actual inflows and outflows of cash.
C. the standardized, generally accepted, accounting principles.
D. the revenue method.
5. The key role of the financial manager is
A. decision making.
B. the presentation of financial statements.
C. the preparation of data for future evaluation.
D. the collection of financial data.
6. Making financing decisions includes all of the following EXCEPT
A. determining the appropriate mix of shortterm and longterm financing.
B. deciding which individual shortterm sources are best at a given point in time.
C. analyzing quarterly budget and performance reports.
D. deciding which individual longterm sources are best at a given point in time.
7. The financial manager 's investment decisions determine
A. both the mix and the type of assets found on the firm 's balance sheet.
B. both the mix and the type of liabilities found on the firm 's balance sheet.
C. both the mix and the type of assets and liabilities found on the firm 's balance sheet.
D. both the mix and the type of shortterm and longterm financing.
8. The primary goal of the financial manager is
A. minimizing risk.
B.