Exam (elaborations)
FIN 301 Exam Questions And Accurate Answers % Pass Guaranteed
- Course
- Institution
FIN 301 Exam Questions And Accurate Answers % Pass Guaranteed...
[Show more]
Content preview
FIN 301 Exam Questions And Accurate Answers 2024-2025100% Pass Guaranteed
The treasurer of a corporation would typically report to the: - Answer vice president of
finance
A capital budgeting decision would involve: - Answer whether or not to buy that new
machine for the production line.
Capital structure decisions refer to: - Answer the amount of debt to take on in order to
fund the project.
Which of the following questions is a financial manager LEAST likely to answer? How
does the firm go about marketing the product?
Which of the following statements regarding a sole proprietorship is CORRECT? A sole
proprietorship's life does not extend beyond that of its owner .
A limited partnership: has at least one partner who has unlimited liability for all of the
partnership's debts.
a) A partnership with four general partners: - Answer must divide the profits 25 percent
to each partner.
One disadvantage for the corporate form of business ownership is the: - Answer double
taxation of distributed profits.
Financial managers should act principally in the interest of: - Answer Shareholders
,Which of the following best expresses the goal of financial management? - Answer
Maximize the current value per share
Which of the following best reflects that the management of a company is acting in a
manner consistent with the goal of financial management? - Answer An increase in the
market value per share
The financial managers should strive to maximize the current value per share of the
outstanding stock in order to -Answer best reflect the interests of the existing owners.
The Sarbanes-Oxley Act of 2002 refers to that governmental response to: - Answer
management greed and abuses.
The Corporate Responsibility Act of 2002 or the SOX Act of 2002 required strict reforms
that would enhance off-corporation financial disclosures and deter corporate
accounting fraud.
Which of the following actions is a financial manager most likely to undertake that would
create an agency problem? - Answers Increasing current profits when doing so reduces
the value of the firm's equity
Which one of the following has ultimate control of a corporation? - Answers
Shareholders
Which of the following are stakeholders of a firm? - Answers Employees and the
government
Which of the following represents a flow from a firm to the financial markets? - Answer
Interest on loan payment
Which of the following is the most liquid account? - Answer Accounts Receivable
, Which of the following is the most liquid asset? - Answer $100 inventory sold today for
cash of $100
As the degree of financial leverage increases, the: - Answer probability a firm will
encounter financial distress increases.
Which one of the following is the financial statement that summarizes a firm's revenue
and expenses over a period of time? - Answer Income statement
Which of the following is TRUE about corporate taxes? - Answer The marginal tax rate
for a corporation may be greater than or equal to the average tax rate of the business.
Which of the following is TRUE about corporate income taxes for 2018? - Answer The
Federal income tax for corporations is an absolute tax, meaning only one tax rate
applies to all levels of taxable income.
Cash flow available to distribute to a corporation's creditors and stockholders, or
whatever is left over after all bills are paid, is termed the: - Answer cash flow from
assets.
Which one of the following is an expense for accounting purposes but is not an
operating cash flow for financial purposes? - Answer Interest expense
Net capital spending: - Answer is equal to zero if the decrease in the net fixed assets is
equal to the depreciation expense.
The River Side Stop has a current market value of $26,400 and owes its creditors
$31,300. What is the market value of the shareholders' equity? - Answer $0
Shareholders' equity = Max [($26,400 − 31,300), 0]
Shareholders' equity = 0
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Easton. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72964 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now