Problem 1. The controller is commonly responsible for
1. managing cash.
2. financial accounting.
3. financial planning.
4. managing credit activities.
Problem 2. Included in the primary activities of the financial manager are
1. making financing decisions.
2. financial analysis and planning.
3. all of these.
4. analyzing and planning cash flows.
5. making investment decisions.
Problem 3. The tax deductibility of expenses ________ their after-tax cost.
1. reduces
2. has no effect on
3. has an undetermined effect on
4. increases
Problem 4. Most businesses raise money by selling their securities in a
1. private placement.
2. public offering.
3. direct placement.
4. stock exchange.
Problem 5. The key activities of the financial manager include all of the following EXCEPT
1. making investment decisions.
2. financial analysis and planning.
3. making financing decisions.
4. managing financial accounting.
Problem 6. A ________ is set up so that employees of corporations or governments can receive income after retirement.
1. savings bank
2. life insurance company
3. credit union
4. pension fund
Problem 7. The amount earned during the accounting period on each outstanding share of common stock is called
1. common stock dividend.
2. net profits after taxes.
3. net income.
4. Earnings per share.