Problem 1) The part of finance concerned with design and delivery of advice and financial products to individuals, business, and government is called
A) Managerial Finance.
B) Financial Manager.
C) Financial Services.
D) none of the above.
Problem 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.
Problem 3) 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.
Problem 4) Financial service
A) is concerned with the duties of the financial manager.
B) involves the design and delivery of advice and financial products.
C) provides guidelines for the efficient operation of the business.
D) handles accounting activities related to data processing.
Problem 5) Which of the following legal forms of an organization's income is NOT taxed under individual income tax rate?
A) Sole proprietorships.
B) Partnerships.
C) Limited partnership.
D) Corporation.
Problem 6) Under which of the following legal forms of organization, is ownership readily transferable?
A) Sole proprietorships.
B) Partnerships.
C) Limited partnership.
D) Corporation.
Problem 7) The true owner(s) of the corporation is (are) the ________.
A) board of directors
B) chief executive officer
C) stockholders
D) creditors
Problem 8) A firm had the following accounts and financial data for 2008:
Sales Revenue $3,060 Cost of goods sold $1,800
Accounts receivable 500 Preferred stock dividends 18
Interest expense 126 Tax rate 40%
Total operating expenses 600 Number of common shares 1,000 outstanding
Accounts payable 240
The firm's earnings per share, rounded to the nearest cent, for 2008 was ________.
A) $0.5335
B) $0.5125
C) $0.3204
D) $0.3024
Problem 9) A firm had the following accounts and financial data for 2008.
Sales Revenue $3,060 Cost of goods sold $1,800
Accounts receivable 500 Preferred stock dividends 18
Interest expense 126 Tax rate 40%
Total operating expenses 600 Number of common shares 1,000
Accounts payable 240 outstanding
The firm's net profit after taxes for 2008 was ______.
A) -$206.40
B) $213.80
C) $320.40
D) $206.25
Problem 10) Paid-in-capital in excess of par represents the amount of proceeds
A) from the original sale of stock.
B) in excess of the par value from the original sale of common stock.
C) at the current market value of common stock.
D) at the current book value of common stock.