Question 1

The financial arrangements required for investment in fixed assets can be

Accepted Answer

A)   quite easily arranged.
B)   challenging for even the most profitable organization.
C)   trivial.
D)   short-term.
E)   inexpensive.F) None of the above
G) A) and B)

Question 2

The only long-term funds that a company can generate internally are

Accepted Answer

A)   dividend yields.
B)   unretained earnings.
C)   retained earnings.
D)   payout earnings.
E)   earnings paid out.F) A) and E)
G) A) and D)

Question 3

Because having idle cash on hand is undesirable,a manager may choose to invest in

Accepted Answer

A)   credit cards.
B)   debit cards.
C)   working capital.
D)   marketable securities.
E)   capital outlay.F) B) and D)
G) D) and E)

Question 4

Corporations usually employ an investment banking firm to help sell their securities in ______,which is where firms raise their financial capital.

Accepted Answer

A)   the primary market
B)   secondary markets
C)   tertiary markets
D)   singular markets
E)   multiple marketsF) A) and C)
G) A) and E)

Question 5

Which of the following is a sequence of small bond issues of progressively longer maturity?

Accepted Answer

A)   Secured bonds
B)   Serial bonds
C)   Progressive bonds
D)   Junk bonds
E)   Sequence bondsF) B) and E)
G) A) and E)

Question 6

Items such as a bond's value,date,and rate are specified in the

Accepted Answer

A)   indenture.
B)   prospectus.
C)   equity contract.
D)   advertisement.
E)   interest-rate specification.F) C) and E)
G) A) and E)

Question 7

A finance company that buys other companies' accounts receivable is known as a(n)

Accepted Answer

A)   bank.
B)   factor.
C)   collateral loan.
D)   pension.
E)   unsecured loan.F) B) and C)
G) B) and D)

Question 8

What does Glasspray sell?

Accepted Answer

A)   Fiberglass spray equipment
B)   Boats
C)   Fiberglass
D)   Sinks
E)   Glasspray is a wholesalerF) B) and D)
G) B) and E)

Question 9

The most widely used source of short-term financing is

Accepted Answer

A)   trade credit.
B)   bank loans.
C)   commercial paper.
D)   mothers and fathers.
E)   finance companies.F) None of the above
G) A) and C)

Question 10

A marketable security is a temporary investment of cash.

Accepted Answer

A) True 
 B)False

Question 11

Are banks the only sources of short-term funds for businesses?

Accepted Answer

No.In fact,virtually all financial insti...

Question 12

Of the following,which would not be a fixed asset for the Sprocket and Widget Manufacturing Company?

Accepted Answer

A)   A 10,000-square-foot factory
B)   Plastic extruding equipment with a 15-year lifespan
C)   $10,000 in T-bills
D)   Molds for plastic with lifespan of five years
E)   FurnitureF) B) and E)
G) A) and B)

Question 13

If a boat manufacturer orders 50 units of fiberglass material and secures trade credit,promising to pay the supplier at a later date,the manufacturer will record the amount to be paid as a(n)

Accepted Answer

A)   account receivable.
B)   current asset.
C)   long-term liability.
D)   account payable.
E)   equity account.F) A) and C)
G) B) and D)

Question 14

Normally,rapidly increasing sales is a good thing.What seems to be the problem here?

Accepted Answer

Organizations experiencing a temporary s...

Question 15

What are some management techniques applied to current liabilities that Glasspray might use to improve its working capital position?

Accepted Answer

Students' answers may vary,but each shou...

Question 16

Good money managers strive to keep just enough cash on hand to pay bills.This cash is called

Accepted Answer

A)   long-term assets.
B)   long-term liabilities.
C)   transaction balances.
D)   a lockbox.
E)   working capital management.F) A) and B)
G) A) and D)

Question 17

Transaction balances are cash on hand to pay everyday expenses.

Accepted Answer

A) True 
 B)False

Question 18

A lockbox is a technique for getting cash into a business's account faster.

Accepted Answer

A) True 
 B)False

Question 19

Plants,offices,and equipment are considered

Accepted Answer

A)   long-term assets.
B)   short-term assets.
C)   relatively inexpensive items.
D)   liabilities.
E)   factors.F) A) and B)
G) B) and C)

Question 20

Cash,investments,accounts receivable,and inventory are also known as

Accepted Answer

A)   current assets.
B)   current liabilities.
C)   long-term assets.
D)   long-term liabilities.
E)   fixed assets.F) A) and B)
G) A) and C)

Exam 16: Financial Management and Securities Markets

Because having idle cash on hand is undesirable,a manager may choose to invest in

Correct AnswerverifiedShow Answer

The most widely used source of short-term financing is

Correct AnswerverifiedShow Answer

Which of the following is a sequence of small bond issues of progressively longer maturity?

Correct AnswerverifiedShow Answer

A finance company that buys other companies' accounts receivable is known as a(n)

Correct AnswerverifiedShow Answer

The financial arrangements required for investment in fixed assets can be

Correct AnswerverifiedShow Answer

Transaction balances are cash on hand to pay everyday expenses.

Correct AnswerverifiedShow Answer

Plants,offices,and equipment are considered

Correct AnswerverifiedShow Answer

If a boat manufacturer orders 50 units of fiberglass material and secures trade credit,promising to pay the supplier at a later date,the manufacturer will record the amount to be paid as a(n)

Correct AnswerverifiedShow Answer

Of the following,which would not be a fixed asset for the Sprocket and Widget Manufacturing Company?

Correct AnswerverifiedShow Answer

Are banks the only sources of short-term funds for businesses?

Correct AnswerverifiedNo.In fact,virtually all financial insti...View AnswerShow Answer

Corporations usually employ an investment banking firm to help sell their securities in ______,which is where firms raise their financial capital.

Correct AnswerverifiedShow Answer

What does Glasspray sell?

Correct AnswerverifiedShow Answer

What are some management techniques applied to current liabilities that Glasspray might use to improve its working capital position?

Correct AnswerverifiedStudents' answers may vary,but each shou...View AnswerShow Answer

Items such as a bond's value,date,and rate are specified in the

Correct AnswerverifiedShow Answer

Cash,investments,accounts receivable,and inventory are also known as

Correct AnswerverifiedShow Answer

The only long-term funds that a company can generate internally are

Correct AnswerverifiedShow Answer

Good money managers strive to keep just enough cash on hand to pay bills.This cash is called

Correct AnswerverifiedShow Answer

A marketable security is a temporary investment of cash.

Correct AnswerverifiedShow Answer

A lockbox is a technique for getting cash into a business's account faster.

Correct AnswerverifiedShow Answer

Normally,rapidly increasing sales is a good thing.What seems to be the problem here?

Correct AnswerverifiedOrganizations experiencing a temporary s...View AnswerShow Answer

Correct Answer
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No.In fact,virtually all financial insti...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Students' answers may vary,but each shou...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Organizations experiencing a temporary s...
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