FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 16: Mastering Financial Management

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

A statement that projects income and/or expenditures over a specified future period is called a _____.

A) financial plan
B) cash flow plan
C) resources plan
D) resource allocation statement
E) budget

F) A) and C)
G) C) and D)

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

Jackson Ski Equipment receives an invoice for $10,000 worth of merchandise from one of its suppliers.The invoice has discount terms of 2/10, net/60.Twenty days later, Jackson Ski Equipment writes a check for ____ to pay the invoice.

A) $10,200
B) $10,000
C) $9,800
D) $9,000
E) $200

F) A) and E)
G) A) and B)

Correct Answer

verified

Show Answer

Question 63

Multiple Choice

Review LaterAdd Note

Harlen Manufacturing is hesitant to extend trade credit to Brendan Drake.Instead, Brendan agrees to sign a promissory note.Harlen prefers this note because

A firm that specializes in buying other firms' accounts receivable is called a(n) _____.

It is not necessary to give most lenders a current business plan or audited financial statements when requesting a long-term business loan.

The first step in building a budget is to identify sources of debt financing.

Sally Overall is thinking about two different decisions.One decision is quite risky, while the other decision is more conservative.To help her make the right decision, she decides to calculate the _____.

Most mature corporations distribute ____ of their after-tax profits as dividends to stockholders.

A revolving credit agreement is a guaranteed line of credit.

The costs of selling stock to the general public are referred to as flotation costs.

Long-term financing should be used to do which of the following?

Inventories and accounts receivable are the assets most commonly used as collateral for short-term financing.

A venture capital firm

Todd develops a plan for obtaining and using the money necessary for his company to implement its goals.This is called a(n) _____.

The maturity date is the date on which the corporation is to repay the money borrowed from bondholders.

MCB Company experienced a significant increase in sales as a result of its new promotional campaign.Yesterday, however, it realized that because most of those sales were on credit, it did not have enough money in the bank to pay this month's bills.MCB can take care of this situation temporarily by

When compared with selling stocks to the public, a private placement has

Proper financial management can ensure all except which of the following?

Morgan's Transition Morgan is currently a manager of a small financial planning firm.He is seeking a new career with a large corporation in the banking industry.He recently applied for the financial manager opening at G & T Bank.He is concerned that the transition from his small firm to a large corporation will be difficult.To better prepare himself for this change, he has decided to enroll in a few business classes to strengthen his understanding of corporate finance.The business classes have proven to be a valuable tool for learning the critical skills needed to fully understand a financial plan, equity financing, and debt financing.Morgan now believes he has strengthened his competitive advantage in his quest for the job. -Refer to Morgan's Transition.When Morgan creates a financial plan, his first step should be which of the following?

Short-term financing is used to start a new business.