Which of the following is a responsibility of a financial manager

Quiz 1 week 3

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Note: It is recommended that you save your response as you complete each question.

Question 1 (1 point)

Which of the following is a responsibility of a financial manager?

Question 1 options:

	All of these answers
	Managing the budget.
	Figuring out financial projections and whether a project is worth financing.
	Ensuring the business has enough cash to pay its financial obligations.

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Question 2 (1 point)

Which of the following should you consider when choosing an organizational structure for a business?

Question 2 options:

	The standardization of tasks.
	All of these answers.
	The type of product or service the business provides.
	The legal requirements your business must meet.

Question 3 (1 point)

Which of the following is NOT a step in constructing a multi-step income statement?

Question 3 options:

	Subtract operating expenses from gross profit to determine income from operations.
	Subtract income tax expense from income before taxes.
	Add all revenues, then subtract all expenses.
	Subtract non-operating expenses from income from operations.

Question 4 (1 point)

Which of the following is the correct definition of the accounting equation?

Question 4 options:

	Liabilities = Assets + Owner's Equity
	Assets = Liabilities + Initial Owner's Equity
	Owner's Equity = Assets + Liabilities
	Assets = Liabilities + Owner's Equity

Question 5 (1 point)

Which of the following is NOT a correct way of calculating a liquidity ratio?

Question 5 options:

	Quick Ratio = (Current Asset - Inventories - Prepayments) / Current Liabilities
	Operating Cash Flow Ratio = Current Liabilities / Operating Cash Flow
	Current Ratio = Total Current Assets / Total Current Liabilities
	Liquidity Ratio = Liquid Assets / Short-term Liabilities

Question 6 (1 point)

Which of the following is used to calculate the debt to equity ratio?

Question 6 options:

	Debt / (Debt + Equity)
	Debt / (Assets - Debt)
	Interest-Bearing Long-Term Debt / Equity
	(Assets - Equity) / Debt

Question 7 (1 point)

Which of the following is NOT information used to calculate an asset's book value?

Question 7 options:

	The current market price of the asset.
	The total amount of depreciation, amortization, and impairment costs made against the asset.
	The price of the asset when it was acquired.
	The costs associated with originally acquiring the asset, such as broker fees.

Question 8 (1 point)

Which of the following is NOT a component of the Cash Flow Statement?

Question 8 options:

	Cash Flow from Operations
	Cash Flow from Sales
	Cash Flow from Financing
	Cash Flow from Investing

Question 9 (1 point)

A company had $5,000,000 in total revenues for its fiscal year. Its expenses for the year were $3,500,000. Its total assets were $12,500,000. What is the company's return on assets for the fiscal year?

Question 9 options:

	.28
	0.12
	.70
	.40

Question 10 (1 point)

A business begins its fiscal year with $10,000,000 in total assets. During the year it has net sales revenue of $45,000,000. At the end of the year it has $8,000,000 in total assets. What is its total assets turnover ratio?

Question 10 options:

	2.5
	4.5
	5
	5.62518

Question 11 (1 point)

A company has $100,00 in cash, $300,000 in accounts receivable, $50,000 in inventory and a $300,000 office building. Its current liabilities are $250,000. What is the company's current ratio, and does that ratio good short-term financial strength?

Question 11 options:

	The current ratio is 1.8, and the ratio indicates good short-term financial strength.
	The current ratio is 1.8, and the ratio indicates poor short-term financial strength.
	The current ratio is 3, and the ratio indicates poor short-term financial strength.
	The current ratio is 3, and the ratio indicates good short-term financial strength.

Question 12 (1 point)

Suppose that a public corporation has a total market value (according to its stock price and number of shares outstanding) of $500 million. If its current net income is $10 per share and it has 1 million shares outstanding, what is the value of its P/E ratio?

Question 12 options:

	500
	50
	10
	100

Question 13 (1 point)

Which of the following statements correctly defines a component of Cost of Goods Sold?

Question 13 options:

	Labor costs are the wages paid to employees who spend their time working directly on the product.
	All overhead costs are associated with production activities.
	All of these answers.
	Parts, Raw Materials, and supplies used are all physical objects that go into making a good.

Question 14 (1 point)

A company wants to have $5 million in sales with $1 million in profit. It will have fixed costs of $3 million. Each unit of its product sells for $20. How much contribution per unit must the company have to meet its goals?

Question 14 options:

	$1.60
	$16
	$0.79
	$8

Question 15 (1 point)

A company wants to increase the amount of time in its disbursement cycle. Which of the following is a valid way to do that?

Question 15 options:

	Mail payment to suppliers for contractual obligations.
	All of these answers.
	Pay for purchases using checks.
	Use credit cards as often as possible.