Wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

FP Obj 1.03 Why Money Matters

Total questions: 20

Worksheet time: 7mins

Name
Class
Date
1.

Finance is the business function that involves managing

a)

production.

b)

money.

2.

The goals of the finance function are to ensure profitability and

a)

manufacture raw materials.

b)

reduce risks.

3.

Accounting is distinct from finance because its main focus is on

a)

money management decision

b)

recordkeeping activities.

4.

The administration of assets refers to decisions about

a)

investments.

b)

accounting.

5.

Decisions about financing refer to the

a)

accounting department.

b)

acquisition of funds.

6.

The finance function ensures that the company’s financial goals are

a)

related to product development.

b)

in line with organizational priorities.

7.

How does the finance function relate to company spending?

a)

It plans and controls spending.

b)

It produces reports about spending.

8.

Money the business owes is known as

a)

accounts payable.

b)

assets.

9.

Money owed to the business is known as

a)

accounts receivable.

b)

equity.

10.

To keep communication flowing with other departments, the finance function depends on

a)

marketing.

b)

information systems.

11.

The finance function is usually responsible for which of the following process

a)

Budgeting

b)

Research

12.

The finance function would definitely be involved in a decision regarding

a)

hiring.

b)

new business projects and strategies.

13.

Which of the following is a capital investment decision:

a)

How to finance investments

b)

How to manage inventory

14.

A company’s current balance of assets and liabilities falls under the focus of

a)

working capital management.

b)

the cash conversion cycle.

15.

Determining which projects a business should invest in is known as

a)

capital budgeting.

b)

capital structuring.

16.

Selling shares in the company to raise money for a new venture is referred to as __________ funding.

a)

equity

b)

dividend

17.

Which of the following is a key component of managing working capital:

a)

Cash conversion cycle

b)

Capital budgeting

18.

The cash conversion cycle should be

a)

as short as possible.

b)

at equilibrium.

19.

Which of the following is a measure of how well a business generates cash flow:

a)

Capital structure

b)

Return on capital

20.

When return on capital is positive, the company i

a)

growing in value.

b)

low on cash.