Assignment Quiz

"Shareholder wealth" in a firm is represented by:

• the number of people employed in the firm.

• the book value of the firm's assets less the book value of its liabilities.

• the amount of salary paid to its employees.

• the market price per share of the firm's common stock.

The long-run objective of financial management is to:

• maximize earnings per share.

• maximize the value of the firm's common stock.

• maximize return on investment.

• maximize market share.

What are the earnings per share (EPS) for a company that earned $100,000 last year in after-tax profits, has 200,000 common shares outstanding and $1.2 million in retained earning at the year end?

• $100,000

• $6.00

• $0.50

• $6.50

A(n) would be an example of a principal, while a(n) would be an example of an agent.

The decision function of financial management can be broken down into the which decisions.

• Financing

• Investment

• Dividend

• Credit Management

The focal point of financial management in a firm is:

• the number and types of products or services provided by the firm.

• the minimization of the amount of taxes paid by the firm.

• the creation of value for shareholders.

• the dollars profits earned by the firm.

What is the roles of management accountant?

• Provide information and accounting reports

• Responsible for carrying out the task of helping the management

• Assist departments in achieving the organization objectives.

• All of above

In the US, the has been given the power to adopt auditing, quality control, ethics, and disclosure standards for public companies and their auditors as well as investigate and discipline those involved.

Discuss the role and responsibilities of a financial manager.

A company's is (are) potentially the most effective instrument of good corporate governance.common stock shareholders