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Firm's liabilities, wealth of owners of a corporation

1.Managing the firm's liabilities includes all of the following EXCEPT

1. cash.
2. accounts payable.
3. notes payable.
4. accruals.

2.The wealth of the owners of a corporation is represented by

1.earnings per share.
2.cash flow.
3.share price.
4.profits.

3.The financial manager may be responsible for any of the following EXCEPT

1.analyzing the effects of more debt on the firm's capital structure.
2.determining whether to accept or reject a capital asset acquisition.
3.monitoring of quarterly tax payments.
4.analyzing budget and performance reports.

4.Financial managers evaluating decision alternatives or potential actions must consider

1.risk, return, and the impact on share price.
2.both risk and return.
3.only risk.
4.only return.

5.Government usually

1.is a net supplier of funds.
2.maintains permanent deposits with financial institutions.
3.borrows funds directly from financial institutions.
4.is a net demander of funds.

6.A firm has just ended its calendar year making a sale in the amount of $200,000 of merchandise purchased during the year at a total cost of $150,500. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. The possible problem this firm may face is
1.low profitability.
2.inability to receive credit.
3.lack of cash flow.
4.high leverage.

Solution Preview

1.Managing the firm's liabilities includes all of the following EXCEPT

1. cash.
(As cash is an asset)

2.The wealth of the owners of a corporation is represented by

3.share price.

3.The financial manager may be responsible for any of the following EXCEPT

3.monitoring of quarterly tax payments.
(Generally ...

Solution Summary

Response discsses firm's liabilities, wealth of owners of a corporation

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