Villanova University - HRD 8003 - Principles of Managerial Finance - Chapters 1 through 8 Q&As.(Study Guide)

Principles of Managerial Finance, Brief, 7e (Gitman) Chapter 1 The Role of Managerial Finance 1.1 Define finance and the managerial finance function. 1) A financial analyst is responsible for maintaining and controlling a firm's daily cash balances. Answer: FALSE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 2) Finance is concerned with the process institutions, markets, and instruments involved in the transfer of money among and between individuals, businesses, and government. Answer: TRUE Diff: 1 Topic: What is Finance? Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Previous Edition AACSB Tag: Analytic Skills 3) Financial managers administer the financial affairs of all types of businesses such as private and public, large and small, and profit seeking and not for profit. Answer: TRUE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: New AACSB Tag: Analytic Skills 4) Financial managers perform different tasks developing a financial plan or budget, extending credit to customers, evaluating proposed large expenditures, and raising money to fund a firm's operations. Answer: TRUE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: New AACSB Tag: Analytic Skills 5) A capital expenditures analyst/manager is responsible for the evaluation and recommendation of proposed asset investments. Answer: TRUE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 6) A controller administers a firm's credit policy by analyzing or managing the evaluation of credit applications, extending credit, and monitoring and collecting accounts receivable. Answer: FALSE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 7) In large companies, CEOs are legally responsible for coordinating the assets and liabilities of employees' pension fund. Answer: FALSE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 8) A controller typically handles the accounting activities, such as tax management, data processing, financial accounting, and cost accounting. Answer: TRUE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 9) Managerial finance is concerned with design and delivery of advice and financial products to individuals, businesses, and governments. Answer: FALSE Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 10) ________ is concerned with design and delivery of advice and financial products to individuals, businesses, and governments. A) Managerial finance B) Auditing services C) Financial services D) Cost accounting Answer: C Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: New AACSB Tag: Analytic Skills 11) Managerial finance ________. A) involves tasks such as budgeting, financial forecasting, cash management, and funds procurement B) involves the design and delivery of advice and financial products C) recognizes funds on an accrual basis D) devotes the majority of its attention to the collection and presentation of financial data Answer: A Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Previous Edition AACSB Tag: Analytic Skills