Which concept describes the underlying driver behind all finance?

Fund management and asset allocation

Which answer gives a definition of finance?

The study of fund management and asset allocation over time

Which answer best summarizes how the fields of accounting, finance, and economics relate to each
other?

Accounting is backwards looking, finance projects forward, and economics studies cause and effect.

How is finance used in organizations?

Alll

Which of the following is NOT something a corporation must consider when making an investment
decision?

Whether you can accurately calculate the guaranteed return on the investment.

Which of the following is a correct statement regarding a method of drafting a company's income
statement?

All

Which of the following is NOT a correct definition of a basic type of financial ratios?

Activity ratios are concerned with shareholder audiences.

Which of the following is usually listed first on a balance sheet?

Asset

According to the accounting equation, net worth must equal

Assets – liabilities
Which of the following regarding balance statements is true?

The balance sheets sections assets, liabilities and ownership equity.

Which of the following is a correct statement regarding a method of drafting a company's income
statement?

*All of these answers*

- The single-step method requires totaling a company's revenue, then subtracting all of it's costs.
- The multi-step method requires calculating the gross profit then subtracting operating expenses.
- The non-operating section of the multi-step method covers all non-primary revenues and losses.

Which of the following is NOT a type of ratio used in financial statement analysis?

Business Ratio

Which concept describes the underlying driver behind all finance?

Fund management and asset allocation

Which answer does not represent how finance is used in organizations?

To maximize short-term profit

Which of the following is NOT a reason why a firm's financial managers must take great care when...

C) These investment decisions determine the corporation's mix of debt and equity.

Which of the following statements about net profit margins is NOT true?

Answer: net profit margin shows the percentage of money spent by customers that is turned into profit.

Net profit margin is the percentage of revenue remaining after all operating expenses, interest, taxes and
preferred stock dividends (but not common stock dividends) have been deducted from a company's total
revenue.

Which of the following is NOT a drawback on using return on assets in a financial analysis?

It does not measure how effective the company is at using its assets to generate profit.
Which of the following risks refers to the possibility that the company will fail to earn the appropriate
return on the money and effort it puts into the new product? Choose one answer.

Investment risk

Which of the following factors need to be considered evaluating a company's working capital strategy?
*

1 point

The level of inventory necessary to ensure that a company can meet its customers demands.