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11. A(n) _____ an executive who develops and implements a

11. A(n) ___ is an executive who develops and implements a firm’s financial plan and determines the most appropriate sources and uses of funds. 12. A mix of a firm’s debt and equity capital is _. 13. ___ is extended by suppliers when a firm receives goods or services, agreeing to pay.

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11. A(n) _____ an executive who develops and implements a

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MULTIPLE CHOICE 32. The financial manager for a typical corporation responsible

MULTIPLE CHOICE 32. The financial manager for a typical corporation is responsible for _____. a. designing the accounting system b. gathering, recording, and reporting financial information c. determining the most appropriate sources and uses of funds d. preparing operating budgets for various departments 33. In the context of the role of the financial manager, who among.

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MULTIPLE CHOICE 32. The financial manager for a typical corporation responsible

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27. Explain the government regulation of the financial markets and

27. Explain the government regulation of the financial markets and the role of the SEC. 28. Describe the global financial environment. .

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27. Explain the government regulation of the financial markets and

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25. What the Federal Reserve’s most important function? How does

25. What is the Federal Reserve’s most important function? How does this function affect the nation’s rate of inflation and employment? 26. Explain the Federal Reserve’s three major policy tools. .

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25. What the Federal Reserve’s most important function? How does

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118. Bonds with ratings of BB and below classified as

118. Bonds with ratings of BB and below are classified as speculative or junk bonds. 119. Bonds with the highest level of risk are rated AAA. 120. The price of a bond is affected by its interest rate. 121. Junk bonds pay about 70 percent more in interest than do investment-grade corporate bonds. 122..

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118. Bonds with ratings of BB and below classified as

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MATCHING Complete the following using the terms listed. a. bonds b. Commercial banks c.

MATCHING Complete the following using the terms listed. a. bonds b. Commercial banks c. Nasdaq d. Credit unions e. financial system f. call provision g. insider trading h. Federal Open Markets Committee (FOMC) i. Securities j. New York Stock Exchange k. Online banking l. limit order m. debentures n. primary market o. net savers 1. The _____ is sometimes referred to as the Big Board, the most.

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MATCHING Complete the following using the terms listed. a. bonds b. Commercial banks c.

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52. Short-term assets expected to be converted into cash within

52. Short-term assets are expected to be converted into cash within _. a. a month b. a year c. four months d. six months 53. Which of the following assets would a firm most likely finance using long-term sources? a. Inventory b. Accounts receivable c. Marketable securities d. Another company 54. _ would be the LEAST likely to obtain a.

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52. Short-term assets expected to be converted into cash within

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89. An expert system a computer program that imitates human

89. An expert system is a computer program that imitates human thinking. 90. Credit card applications are often evaluated using executive systems. 91. DVD drives and monitors are examples of computer input devices. 92. An especially powerful midrange computer is called a supercomputer. 93. Mainframe computers have more storage capacity and are faster than.

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89. An expert system a computer program that imitates human

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89. _____ defined as the use of material nonpublic information

89. ___ is defined as the use of material nonpublic information about a company to make investment profits. a. Underwriting b. Insider trading c. Thrift supervision d. Self-regulation 90. The _ establishes and updates rules to ensure that member brokers perform their basic functions honestly and fairly. a. NASD b. NASDAQ c. NYSE d. FDIC 91. All market participants must.

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89. _____ defined as the use of material nonpublic information

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49. Two factors determine the price of a bond: ____

49. Two factors determine the price of a bond: and . a. risk; interest rate b. market; risk c. interest rate; call provision d. price of other bonds; the company selling the bond 50. Bonds with ratings of BBB and above are classified as . a. speculative bonds b. investment-grade bonds c. junk bonds d. convertible bonds 51. Other.

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49. Two factors determine the price of a bond: ____

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148. Underwriting the process used by insurance companies to determine

148. Underwriting is the process used by insurance companies to determine whom to insure and what to charge. 149. One of the Federal Reserve’s most important tasks is to help facilitate the clearing of checks. 150. The Federal Open Markets Committee sets policies regarding bank mergers and lending standards. 151. All federally insured.

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148. Underwriting the process used by insurance companies to determine

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23. Explain the accounting equation. 24. Explain the purpose of the

23. Explain the accounting equation. 24. Explain the purpose of the Sarbanes-Oxley Act. 25. Identify and briefly describe the four categories of financial ratios. .

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23. Explain the accounting equation. 24. Explain the purpose of the

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ESSAY 19. Explain each role in the hierarchy of financial management

ESSAY 19. Explain each role in the hierarchy of financial management at a large firm. 20. Explain what can be indicated by the growing importance of financial professionals. 21. Explain the concept of risk-return trade-off. 22. What is the purpose of a financial plan? .

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ESSAY 19. Explain each role in the hierarchy of financial management

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59. The two largest stock markets in the world the

59. The two largest stock markets in the world are the and the . a. New York Stock Exchange; SP 500 b. Tokyo Stock Exchange; New York Stock Exchange c. Tokyo Stock Exchange; London Stock Exchange d. New York Stock Exchange; NASDAQ stock market 60. Daily trading on the AMEX market is shares. a..

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59. The two largest stock markets in the world the

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70. Deciding how to prevent system failures along with the

70. Deciding how to prevent system failures along with the ability to continue operations if computer systems fail is called ________. a. disaster recovery planning b. information systems management c. advanced computer security d. virus protection 71. Which of the following is an unreasonable response to potential computer problems? a. using online storage services b. limiting computer.

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70. Deciding how to prevent system failures along with the

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70. An asset turnover ratio of 2.5 means that for

70. An asset turnover ratio of 2.5 means that for every $1 in assets, the firm generates _____ in sales. a. $0.50 b. $2.00 c. $2.50 d. $3.00 71. A firm has total assets of $50 million and owner’s equity of $40 million. What is the firm’s debt ratio? a. 70 percent b. 50 percent c. 30 percent d..

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70. An asset turnover ratio of 2.5 means that for

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39. Treasury bills have a minimum denomination of ____. a. $100,000 b.

39. Treasury bills have a minimum denomination of __. a. $100,000 b. $10,000 c. $1,000 d. $100 40. _ is a form of short-term financing sold by corporations, such as Raytheon, that mature from 1 to 270 days from the date of issue. a. Bonds b. CDs c. Treasury bills d. Commercial paper 41. A ___ is a time deposit.

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39. Treasury bills have a minimum denomination of ____. a. $100,000 b.

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MULTIPLE CHOICE 30. Professionals who responsible for gathering, recording, reporting, and

MULTIPLE CHOICE 30. Professionals who are responsible for gathering, recording, reporting, and interpreting the financial information of an organization are known as _____. a. statisticians b. accountants c. IRS agents d. IRS agents’ managers 31. Mitchell works for a travel agency. Her job involves preparing financial reports and interpreting those reports to provide information for decision.

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MULTIPLE CHOICE 30. Professionals who responsible for gathering, recording, reporting, and

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26. Explain the concept of leverage. 27. Describe a disadvantage of

26. Explain the concept of leverage. 27. Describe a disadvantage of equity capital. 28. List the major sources of short-term and long-term funds. .

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26. Explain the concept of leverage. 27. Describe a disadvantage of

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MATCHING Complete the following using the terms listed. a. Venture capitalists b. private

MATCHING Complete the following using the terms listed. a. Venture capitalists b. private placements c. factoring d. capital investment analysis e. debt capital f. Equity capital g. financial plan h. leveraged buyout i. private equity funds j. divestiture k. Marketable securities l. financial manager m. tender offer n. Trade credit o. leverage p. capital structure q. Asset intensity r. bonds 1. The technique of increasing the rate of return on.

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MATCHING Complete the following using the terms listed. a. Venture capitalists b. private

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19. Explain the main features of preferred stock. 20. Explain the

19. Explain the main features of preferred stock. 20. Explain the process of underwriting. 21. In addition to the NYSE and NASDAQ, what other stock markets exist in the U.S.? .

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19. Explain the main features of preferred stock. 20. Explain the

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TRUE/FALSE 98. Businesses net savers, while households net users of funds. 99.

TRUE/FALSE 98. Businesses are net savers, while households are net users of funds. 99. The financial system describes the process by which funds flow from savers to users. 100. Securities represent obligations on the part of issuers—businesses and governments—to provide purchasers with expected or stated returns on the funds invested or loaned. 101. The.

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TRUE/FALSE 98. Businesses net savers, while households net users of funds. 99.

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42. Major current assets include all of the following EXCEPT_____. a.

42. Major current assets include all of the following EXCEPT_. a. accounts receivable b. stockholders’ equity c. marketable securities d. cash 43. All of the following actions result in equity capital EXCEPT _. a. issuing bonds b. liquidating assets c. issuing stock d. reinvesting earnings 44. Kevin’s company needs to obtain funds in order to keep the business going; however,.

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42. Major current assets include all of the following EXCEPT_____. a.

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ESSAY 16. Describe how the financial system operates. 17. Describe the two

ESSAY 16. Describe how the financial system operates. 17. Describe the two ways that funds can be transferred between savers and users. 18. Differentiate among the different types of money market instruments. .

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ESSAY 16. Describe how the financial system operates. 17. Describe the two

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50. The _____ was created by the Sarbanes-Oxley Act of

50. The _____ was created by the Sarbanes-Oxley Act of 2002. a. Securities & Exchange Commission b. Public Accounting Oversight Board c. GAAP d. FASB 51. Which of the following represents the accounting equation? a. Assets + Liabilities = Owners’ Equity b. Assets = Liabilities + Owners’ Equity c. Liabilities = Assets + Owners’ Equity d. Owners’ Equity –.

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50. The _____ was created by the Sarbanes-Oxley Act of

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105. The Federal Bureau of Investigation an example of a

105. The Federal Bureau of Investigation is an example of a governmental agency that hires accountants. 106. Assets can include intangible possessions such as patents and trademarks. 107. The GAAP standard of relevance ensures that one firm’s financial statements can be compared with those of similar businesses. 108. The Securities and Exchange Commission.

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105. The Federal Bureau of Investigation an example of a

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23. Explain how the cash inflows and outflows of a

23. Explain how the cash inflows and outflows of a business are similar to those of a household. 24. Explain the difference between an expansion decision and a replacement decision. 25. Explain why companies frequently choose to use debt. .

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23. Explain how the cash inflows and outflows of a

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ESSAY 19. What accounting? Provide examples of tasks that accountants perform. 20.

ESSAY 19. What is accounting? Provide examples of tasks that accountants perform. 20. Explain the differences between public accountants and management accountants. 21. All organizations perform three basic business activities. List and describe these activities. 22. Define GAAP and explain its purpose. .

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ESSAY 19. What accounting? Provide examples of tasks that accountants perform. 20.

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TRUE/FALSE 85. Accounting the language of business. 86. Accounting information can be

TRUE/FALSE 85. Accounting is the language of business. 86. Accounting information can be as important to those outside the organization as it is to those inside the organization. 87. Daily business decisions are generally unaffected by accounting information; long-term decisions, however, are affected by accounting information and the interpretation of financial reports. 88. Most.

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TRUE/FALSE 85. Accounting the language of business. 86. Accounting information can be

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TRUE/FALSE 79. Data alone of limited value to a company. 80. Sales

TRUE/FALSE 79. Data alone are of limited value to a company. 80. Sales figures are an example of data. 81. Information is the result of processed data. 82. The heart of a management information system is the software. 83. Information overload is more of a problem today because of improved information technology. 84. The main purpose.

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TRUE/FALSE 79. Data alone of limited value to a company. 80. Sales

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138. Virtually all developed countries and many developing countries have

138. Virtually all developed countries and many developing countries have stock exchanges. 139. The NASDAQ is a computerized communications network that links member investment firms and is the world’s largest intranet. 140. Nondepository institutions include life insurance companies, such as Northwestern Mutual; pension funds, such as the Florida state employee pension fund;.

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138. Virtually all developed countries and many developing countries have

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158. When the Fed buys government securities, it adds to

158. When the Fed buys government securities, it adds to the supply of money and credit, which causes a reduction in interest rates. 159. U.S. banks make few foreign investments due to regulatory restrictions. 160. The National Association of Securities Dealers (NASD) purpose is to ensure that brokers perform their basic functions.

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158. When the Fed buys government securities, it adds to

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125. A firm has $12 million in current assets, of

125. A firm has $12 million in current assets, of which $8 million is inventory. If the company has $4 million in current liabilities, then its current ratio equals 1.0. 126. Return on equity is a profitability ratio. 127. Profitability ratios measure a firm’s ability to meet its short-term obligations. 128. If a.

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125. A firm has $12 million in current assets, of

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60. Zane Corporation sells $1,000 worth of goods July 25

60. Zane Corporation sells $1,000 worth of goods on July 25 on credit. The customer sends the company a check on August 15. The customer receives the goods on September 1. Assuming the company uses accrual accounting, the sale will be recorded in _____. a. August b. July c. September d. either July, August,.

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60. Zane Corporation sells $1,000 worth of goods July 25

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128. Preferred stockholders receive fixed dividends. 129. In the long run

128. Preferred stockholders receive fixed dividends. 129. In the long run stock prices tend to follow a company’s profits. 130. Convertible bonds pay lower interest rates than those lacking conversion features. 131. Sales of most corporate and municipal securities are made via auctions. 132. When a company offers stock for sale to the general.

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128. Preferred stockholders receive fixed dividends. 129. In the long run

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40. Public accountants typically perform all of the following tasks

40. Public accountants typically perform all of the following tasks for a business client EXCEPT _____. a. tax planning b. reviewing a firm’s financial statements c. developing the firm’s marketing strategy d. management consulting 41. Maxwell is not an employee of the Edith Corporation, but he was hired as a management consultant to provide unbiased.

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40. Public accountants typically perform all of the following tasks

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95. Camille an accountant who works for a firm providing

95. Camille is an accountant who works for a firm providing auditing services to other businesses. Camille is a public accountant. 96. Investing activities focus on selling goods and services, but they also consider cost control as an important element of sound financial management. 97. A public accounting firm is prohibited from.

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95. Camille an accountant who works for a firm providing

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26. Describe the purpose of budgets in a business. 27. What

26. Describe the purpose of budgets in a business. 27. What is the purpose of the balance sheet? Explain how it is organized. 28. What is accrual accounting? How does depreciation affect net income and cash flow? 29. Explain how exchange rates influence international accounting practices. Why was the International Accounting Standards Committee.

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26. Describe the purpose of budgets in a business. 27. What

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MATCHING Complete the following using the terms listed. a. certified public accountant b.

MATCHING Complete the following using the terms listed. a. certified public accountant b. International Financial Reporting Standards c. asset d. liability e. Owners’ equity f. accounting equation g. balance sheet h. income statement i. Foreign Corruption Practices Act j. accrual accounting k. open book management l. budget m. generally accepted accounting principles (GAAP) n. Financial Accounting Standards Board (FASB) o. profitability ratios p. International Accounting Standards Committee.

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MATCHING Complete the following using the terms listed. a. certified public accountant b.

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79. Which of the following not one of the four

79. Which of the following is not one of the four major policy tools the Fed has for controlling the growth in the supply of money and credit? a. Reserve requirements b. Check clearing c. The discount rate d. Open market operations 80. The rate the Fed charges member banks for short-term loans is called.

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79. Which of the following not one of the four

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29. Describe hedge funds. 30. What an LBO? 31. Why do firms

29. Describe hedge funds. 30. What is an LBO? 31. Why do firms divest assets? .

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29. Describe hedge funds. 30. What an LBO? 31. Why do firms

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108. Bondholders creditors, and therefore they have a claim the

108. Bondholders are creditors, and therefore they have a claim on the firm’s assets that must be satisfied before any claims of stockholders in the event of the firm’s bankruptcy, reorganization, or liquidation. 109. Jeff wants to purchase a low-risk bond. Therefore, he should buy a government bond. 110. The Treasury sells.

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108. Bondholders creditors, and therefore they have a claim the

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11. Proponents of _____ allow employees to view sensitive financial

11. Proponents of _ allow employees to view sensitive financial information so that they better understand how their work contributes to the company’s success. 12. An organization’s overall financial performance is measured by its _, which evaluates the ability to generate revenues in excess of operating costs and other expenses. 13. Financial.

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11. Proponents of _____ allow employees to view sensitive financial

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109. Unlike viruses, worms don’t need host programs to damage

109. Unlike viruses, worms don’t need host programs to damage computer systems. 110. A handful of users click on a link that reads “free unlimited Tetrisgame” to reveal a blank screen. They later find that information on their hard drive was also erased. The page that falsely advertised a free game.

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109. Unlike viruses, worms don’t need host programs to damage

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99. A familiar example of wide area networks long-distance telephone

99. A familiar example of wide area networks is long-distance telephone service. 100. In the context of wireless local networks, there are only a select number of hot spots in public locations today. 101. An intranet links a company to its suppliers and customers. 102. A firewall scrambles data and makes it difficult.

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99. A familiar example of wide area networks long-distance telephone

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115. Assets shown in ascending order of liquidity. 116. The right

115. Assets are shown in ascending order of liquidity. 116. The right side of the balance sheet lists claims against assets. 117. The three principal financial statements are the balance sheet, income statement, and the statement of retained earnings. 118. When examining a statement of cash flows, investors obtain relevant information about a.

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115. Assets shown in ascending order of liquidity. 116. The right

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60. All Walmart stores have satellite dishes that link stores

60. All Walmart stores have satellite dishes that link stores together with the company’s headquarters. Walmart is using a(n) ________. a. wide area network b. enterprise resource system c. expert system d. local area network 61. Rebecca is on a business trip. From her hotel, she uses her computer to access her company’s network, checking.

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60. All Walmart stores have satellite dishes that link stores

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MULTIPLE CHOICE 29. In the U.S. financial system, which of the

MULTIPLE CHOICE 29. In the U.S. financial system, which of the following is a net saver? a. households b. business c. the government d. financial institutions 30. One of the most important variables that determine how much a person saves is _____. a. what country he or she is from b. the person’s gender c. the person’s race d. the.

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MULTIPLE CHOICE 29. In the U.S. financial system, which of the

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69. Which of the following financial institutions would typically invest

69. Which of the following financial institutions would typically invest the largest portions of its funds in home mortgage loans? a. Savings bank b. Credit union c. Commercial bank d. Life insurance company 70. Savings banks were originally established to make ________ loans. a. home mortgage b. business c. agricultural d. automobile 71. Which of the following is a nondepository.

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69. Which of the following financial institutions would typically invest

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Study Resources (Business Management)

11. A(n) _____ an executive who develops and implements a

11. A(n) _____ is an executive who develops and implements a firm’s financial plan and determines the most appropriate sources and uses of funds. 12. A mix of a firm’s debt and equity capital is _____. 13. _____ is extended by suppliers when a firm receives goods or services, agreeing to pay.

11. A(n) _____ an executive who develops and implements a

MULTIPLE CHOICE 32. The financial manager for a typical corporation responsible

MULTIPLE CHOICE 32. The financial manager for a typical corporation responsible

27. Explain the government regulation of the financial markets and

27. Explain the government regulation of the financial markets and the role of the SEC. 28. Describe the global financial environment. .

27. Explain the government regulation of the financial markets and

25. What the Federal Reserve’s most important function? How does

25. What is the Federal Reserve’s most important function? How does this function affect the nation’s rate of inflation and employment? 26. Explain the Federal Reserve’s three major policy tools. .

25. What the Federal Reserve’s most important function? How does

118. Bonds with ratings of BB and below classified as

118. Bonds with ratings of BB and below classified as

MATCHING Complete the following using the terms listed. a. bonds b. Commercial banks c.

MATCHING Complete the following using the terms listed. a. bonds b. Commercial banks c.

52. Short-term assets expected to be converted into cash within

52. Short-term assets expected to be converted into cash within

89. An expert system a computer program that imitates human

89. An expert system a computer program that imitates human

89. _____ defined as the use of material nonpublic information

89. _____ defined as the use of material nonpublic information

49. Two factors determine the price of a bond: ____

49. Two factors determine the price of a bond: ____

148. Underwriting the process used by insurance companies to determine

148. Underwriting the process used by insurance companies to determine

23. Explain the accounting equation. 24. Explain the purpose of the

23. Explain the accounting equation. 24. Explain the purpose of the Sarbanes-Oxley Act. 25. Identify and briefly describe the four categories of financial ratios. .

23. Explain the accounting equation. 24. Explain the purpose of the

ESSAY 19. Explain each role in the hierarchy of financial management

ESSAY 19. Explain each role in the hierarchy of financial management at a large firm. 20. Explain what can be indicated by the growing importance of financial professionals. 21. Explain the concept of risk-return trade-off. 22. What is the purpose of a financial plan? .

ESSAY 19. Explain each role in the hierarchy of financial management

59. The two largest stock markets in the world the

59. The two largest stock markets in the world the

70. Deciding how to prevent system failures along with the

70. Deciding how to prevent system failures along with the

70. An asset turnover ratio of 2.5 means that for

70. An asset turnover ratio of 2.5 means that for every $1 in assets, the firm generates _____ in sales. a. $0.50 b. $2.00 c. $2.50 d. $3.00 71. A firm has total assets of $50 million and owner’s equity of $40 million. What is the firm’s debt ratio? a. 70 percent b. 50 percent c. 30 percent d..

70. An asset turnover ratio of 2.5 means that for

39. Treasury bills have a minimum denomination of ____. a. $100,000 b.

39. Treasury bills have a minimum denomination of ____. a. $100,000 b.

MULTIPLE CHOICE 30. Professionals who responsible for gathering, recording, reporting, and

MULTIPLE CHOICE 30. Professionals who responsible for gathering, recording, reporting, and

26. Explain the concept of leverage. 27. Describe a disadvantage of

26. Explain the concept of leverage. 27. Describe a disadvantage of equity capital. 28. List the major sources of short-term and long-term funds. .

26. Explain the concept of leverage. 27. Describe a disadvantage of

MATCHING Complete the following using the terms listed. a. Venture capitalists b. private

MATCHING Complete the following using the terms listed. a. Venture capitalists b. private

19. Explain the main features of preferred stock. 20. Explain the

19. Explain the main features of preferred stock. 20. Explain the process of underwriting. 21. In addition to the NYSE and NASDAQ, what other stock markets exist in the U.S.? .

19. Explain the main features of preferred stock. 20. Explain the

TRUE/FALSE 98. Businesses net savers, while households net users of funds. 99.

TRUE/FALSE 98. Businesses net savers, while households net users of funds. 99.

42. Major current assets include all of the following EXCEPT_____. a.

42. Major current assets include all of the following EXCEPT_____. a.

ESSAY 16. Describe how the financial system operates. 17. Describe the two

ESSAY 16. Describe how the financial system operates. 17. Describe the two ways that funds can be transferred between savers and users. 18. Differentiate among the different types of money market instruments. .

ESSAY 16. Describe how the financial system operates. 17. Describe the two

50. The _____ was created by the Sarbanes-Oxley Act of

50. The _____ was created by the Sarbanes-Oxley Act of

105. The Federal Bureau of Investigation an example of a

105. The Federal Bureau of Investigation an example of a

23. Explain how the cash inflows and outflows of a

23. Explain how the cash inflows and outflows of a business are similar to those of a household. 24. Explain the difference between an expansion decision and a replacement decision. 25. Explain why companies frequently choose to use debt. .

23. Explain how the cash inflows and outflows of a

ESSAY 19. What accounting? Provide examples of tasks that accountants perform. 20.

ESSAY 19. What accounting? Provide examples of tasks that accountants perform. 20.

TRUE/FALSE 85. Accounting the language of business. 86. Accounting information can be

TRUE/FALSE 85. Accounting the language of business. 86. Accounting information can be

TRUE/FALSE 79. Data alone of limited value to a company. 80. Sales

TRUE/FALSE 79. Data alone of limited value to a company. 80. Sales

138. Virtually all developed countries and many developing countries have

138. Virtually all developed countries and many developing countries have

158. When the Fed buys government securities, it adds to

158. When the Fed buys government securities, it adds to

125. A firm has $12 million in current assets, of

125. A firm has $12 million in current assets, of

60. Zane Corporation sells $1,000 worth of goods July 25

60. Zane Corporation sells $1,000 worth of goods July 25

128. Preferred stockholders receive fixed dividends. 129. In the long run

11. A(n) ___ is an executive who develops and implements a firm’s financial plan and determines the most appropriate sources and uses of funds. 12. A mix of a firm’s debt and equity capital is _. 13. ___ is extended by suppliers when a firm receives goods or services, agreeing to pay.