An objective of inventory turnover to increase the number of times inventory should turn over. Select one: a. False b. True

A reduction in a term deposit from one period to the next is considered a cash outflow. Select one: a. FALSE b. TRUE

Financial management ensures that operating managers formulate accounting and financial policies that are clearly defined. Select one: a. False b. True

Financing decisions focus on long-term borrowings. Select one: a. False b. True

Statement of financial position ratios helps managers to evaluate a companys financial performance in terms of efficiencies. Select one: a. False b. True

The section called operating activities in the statement of cash flows normally shows a cash outflow. Select one: a. FALSE b. TRUE

The section dealing with investing activities in the statement of cash flows usually shows a cash outflow. Select one: a. FALSE b. TRUE The statement of cash flows is the financial statement that can reveal the level of solvency of a business. Select one: a. TRUE b. FALSE

----------are financial statements required to produce the statement of cash flows. ----------is defined as the process of decision-making and the process by which decisions are implemented (or not implemented)

Who will be a user of financial statements, and what will they be used for? Select one: a. The marketing department is interested in the operating income figures in the financial statements. b. Investors will use financial statements to decide whether to lend money to a company. c. Managers will use financial statements to make decisions about their company. d. Lenders will use financial statements to decide whether to invest in a company.

Why is it important for managers to ask, "How are we doing?" Select one: a. Interest groups have illegitimate and corresponding objectives. b. It is required by their employment contract. c. Investors want to know about a companys financial performance. d. Government agencies want to know about a companys financial performance.

Why is managing cash flow important? Select one: a. It affects the profitability of the entity. b. Financial analysts, lenders, investors and managers are all interested in the flow of cash. c. It allows us to plan for the future. d. Cash inflows and cash outflows must be equal.

Which of the following statements concerning the role of a non-financial manager is false? Select one: a. All non-financial managers are really financial managers because their actions ultimately affect the financial statements. b. The non-financial manager who is responsible for resources or budgets should be familiar with the language of finance. c. Business decisions made by non-financial managers do affect the financial performance of the organization. d. Capital budgeting, ratio analysis, and break-even are financial tools used by non-financial managers.

Which of the following statements describes a financial management activity? Select one: a. Ensuring liquidity by managing the payment of dividends. b. The stability objective is related to the financial structure of a business. c. Operating decisions dealing with better utilization of non-current assets. d. Arranging internal financing is obtained from banks and investors.

Which of the following statements describes an activity which is financial management? Select one: a. Ensuring that the cost of borrowing is greater than the return on assets. b. Monitoring the profit for the year which is the difference between revenue and gross profit. c. Looking after trade payables and corporate accounting is not a responsibility of the controller. d. The treasurer raising funds.

What must plans include if they are to be expressed in measurable terms? Select one: a. specific expressions of corporate financial objectives b. a reference to the firms well-being c. terms such as good, medium, and bad d. quantities and dollar amounts

What term is defined as "the activity involved in raising funds and buying assets in order to obtain the highest possible return? Select one: a. general management b. marketing management c. financial management d. accounting

What measures the productivity level of a business? Select one: a. average collection period b. profit margin on revenue c. current ratio d. total assets turnover

What is considered an "efficiency" financial objective? Select one: a. the return on revenue b. the return on trade receivables c. the ability minimize the cost of borrowed funds d. the ability to meet short-term financial commitments