Untitled Quiz

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

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.

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.

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?

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.

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?

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

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?

• How much inventory should the company keep on hand?

• Should the company close one of its current stores?

• How much money should the company borrow to buy a new building?

Which one of the following is a working capital management decision?

• What equipment will be required to complete a project?

• Should the firm require immediate payment from customers or offer credit terms?

• What amount of long-term debt is required to complete a project?

• What percentage of the firm’s equity should the firm issue to fund an acquisition?

• Which one of several acceptable projects should be implemented?

Which one of the following involves a working capital management decision?

• What is the maximum level of cash to be kept in the firm’s bank account?

• What is the most efficient process for producing a product?

• How many hours of overtime should manufacturing employees be allowed to work?

• When is the appropriate time to replace the delivery fleet?

• Should a newly available parcel of land be acquired?