FIN 100 Principles of Finance Unit 1 - Milestone 1.

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You passed this Milestone
27 questions were answered correctly.
1

What is finance?


The study of how to allocate assets to maximize returns

The process of communicating financial information about a business

The social science that analyzes the production, distribution and consumption of goods
and services

The study of a business's past financial decisions
CONCEPT
Introducing Finance
2

Strategic planning answers the question "__________"


How many people do we need?

Who are we competing with?

How much money do we have?

Where are we going?
CONCEPT
Financial Forecasting
3

Lucas is worried about his company's short-term viability.

What type of financial statement should he look at?


Income statement

, 
Statement of changes in equity

Balance sheet

Cash flow statement
CONCEPT
Introducing Financial Statements
4

Preparing a cash flow forecast helps a company to examine and
manage its __________.


bottom line

profitability

float times

accounting practices
CONCEPT
Building a Cash Budget
5

Thomas is concerned about his company's ability to pay off its short-term
debts.

If he wants to know more about his company's liquidity, what should
he do?


Calculate his total assets

Calculate his debt to equity ratio

Calculate his total liabilities