Question 1: What is the primary goal of financial management?
a. Increased earnings
b. Maximizing cash flow
c. Maximizing shareholder wealth
d. Minimizing risk of the firm
Question 2: Gross profit is equal to
A. sales minus cost of goods sold.
b. Sales minus (selling administrative expenses).
C. sales minus (cost of goods sold and selling and administrative expenses).
d. Sales minus (cost of goods sold and depreciation expenses).
Question 3. Ratio analysis can be useful for
a. Historical trend analysis within a firm.
B. comparison of ratios within a single industry.
c. Measuring the effects of financing.
d. All of the above are true.