BFIN Final Exam Questions With 100% Correct Answers

BFIN Final Exam Questions With 100% Correct Answers With good accounting knowledge, a financial manager can - answerunderstand financial data of the firm Accounting can help financial managers: - answerto interpret and use financial information in allocating financial resources more efficiently The field of finance is closely linked to: - answeraccounting and economics The goal of financial management is: - answerto maximize shareholder's wealth Which of the following is not a drawback for profit-only focus? - answerinvestors may receive a higher dividend payout Valuation of assets utilizes: - answerthe present value model and future expected cash flows Agency theory describes: - answerthe potential conflicts between the goals of management and that of shareholders Fairness in financial management refers to all of the following with the exception of: - answerrewarding CEOs with excessive bonuses The honesty of the management can be compromised under all the following conditions with the exception of: - answerwhen a manager complies with regulatory rules One way to align management's interest with that of shareholder's is: - answergranting stock options to management Which if the following forms exposes all owners to unlimited liability? - answerboth partnership and proprietorships Sole Proprietorship is characterized by all of the following except: - answerhigh organizational and operating costs Select the pair of terms that indicates a correct match - answerproprietorship; personal taxation only Markets that focus on short-term securities are: - answermoney markets Markets that focus on securities having life longer than one year are: - answercapital market Which of the following statements is not correct about a firm laded with debt? - answerthe firm is viewed by investors with high growth potentials New common stock is sold by firms in the ________ market and individuals trade securities in ________ market. - answerprimary; secondary On January 1, 2018, total assets for Jahara Corp were $136,000; on December 31, 2018, total assets were $157,000. On January 1, 2018, total liabilities were $110,000; on December 31, 2018, total liabilities were $118,000. What is the amount of the change and the direction of the change in Wininger Technologies' capital for 2019? - answerincrease of $13,000 In 1990, Dolomites Company purchased a building for $170,000. In 2020, a real estate professional says the building has a fair value of $1,000,000. In 2020, a similar building down the street recently sold for $900,000. What value, before consideration of accumulated depreciation, is reported for the building on the balance sheet at December 31, 2020? - answer$170,000 The calculation of ending retained earnings considers the beginning retained earnings, current period net income or net less, and subtracts dividends - answerTrue The calculation of ending retained earnings considers the beginning retained earnings, current period net income or net loss, and stockholder's equity - answerFalse The financial statement that reflects the profitability of a firm over a period of the time is the: - answerincome statement The statement of cash flows identifies the sources and uses of the firm's cash: - answerbetween the beginning and the year end of the fiscal period the statement of cash flows is composed of cash flow from operations, cash flow from financing activities, and: - answercash flow from investing activities Earnings that are retained: - answerare used to purchase assets, pay liabilities and other expenses The value of a firm's land as a result of a golf course being built in the adjacent property: - answeris an increase in value to an economist Accounting values are established primarily by: - answeractual transactions To an accountant, income that is gained or lost during a given period is: - answerverifiable The economists' value concept: - answerdoes not include sunk costs The balance sheet assets may include all except - answercontingent liabilities Investors reflect the value changes of company's assets or liabilities by: - answerraising or lowering the market share prices