Financial management basic knowledge

What is the primary goal of financial management?

• Maximizing sales

• Maximizing shareholder wealth

• Minimizing expenses

• Increasing market share

What are the key three financial statement elements that must be developed

Which financial statement provides an overview of a company's financial position at a specific point in time?

• Income statement

• Cash flow statement

• Balance sheet

• Statement of retained earnings

What is the definition of Financial Management?

• Managing personal savings

• Managing a company's financial resources and decisions

• Managing stock market investments

• Managing real estate assets

• Public financial management

Which of the following is NOT one of the primary financial statements used in financial reporting?

• Income statement

• Cash flow statement

• Sales statement

• Balance sheet

Which type of investment is the best for the company

• Using Loans

• Going Public

• Using intern resource

• Using bonds

The income statement reports:

• A company's financial position at a specific point in time
  

• A company's cash flows over a period of time

• A company's revenues and expenses over a period of time

• A company's assets, liabilities, and equity

What is the main purpose of the cash flow statement?

• To show a company's profitability
  

• To report a company's cash inflows and outflows during a period
  

• To provide a summary of a company's long-term investments
  

Which of the following is an example of an operating expense for a business?

• Purchase of a new building

• Salary payments to employees

• Loan interest payments

• Dividend payments to shareholders

What is the formula for calculating the Net Present Value (NPV) of a project or investment?

• NPV = Initial Investment / Annual Cash Flow

• NPV = Future Value / Present Value

• NPV = Present Value - Initial Investment

• NPV = Total Revenue - Total Expenses