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FIN 301 Exam Questions And Accurate Answers 2024-2025100% Pass Guaranteed
The treasurer of a corporation would typically report to the: - Answer vice president of
finance
A capital budgeting decision would involve: - Answer whether or not to buy that new
machine for the production line.
Capital structure decisions refer to: - Answer the amount of debt to take on in order to
fund the project.
Which of the following questions is a financial manager LEAST likely to answer? How
does the firm go about marketing the product?
Which of the following statements regarding a sole proprietorship is CORRECT? A sole
proprietorship's life does not extend beyond that of its owner .
A limited partnership: has at least one partner who has unlimited liability for all of the
partnership's debts.
a) A partnership with four general partners: - Answer must divide the profits 25 percent
to each partner.
One disadvantage for the corporate form of business ownership is the: - Answer double
taxation of distributed profits.
Financial managers should act principally in the interest of: - Answer Shareholders
,Which of the following best expresses the goal of financial management? - Answer
Maximize the current value per share
Which of the following best reflects that the management of a company is acting in a
manner consistent with the goal of financial management? - Answer An increase in the
market value per share
The financial managers should strive to maximize the current value per share of the
outstanding stock in order to -Answer best reflect the interests of the existing owners.
The Sarbanes-Oxley Act of 2002 refers to that governmental response to: - Answer
management greed and abuses.
The Corporate Responsibility Act of 2002 or the SOX Act of 2002 required strict reforms
that would enhance off-corporation financial disclosures and deter corporate
accounting fraud.
Which of the following actions is a financial manager most likely to undertake that would
create an agency problem? - Answers Increasing current profits when doing so reduces
the value of the firm's equity
Which one of the following has ultimate control of a corporation? - Answers
Shareholders
Which of the following are stakeholders of a firm? - Answers Employees and the
government
Which of the following represents a flow from a firm to the financial markets? - Answer
Interest on loan payment
Which of the following is the most liquid account? - Answer Accounts Receivable
, Which of the following is the most liquid asset? - Answer $100 inventory sold today for
cash of $100
As the degree of financial leverage increases, the: - Answer probability a firm will
encounter financial distress increases.
Which one of the following is the financial statement that summarizes a firm's revenue
and expenses over a period of time? - Answer Income statement
Which of the following is TRUE about corporate taxes? - Answer The marginal tax rate
for a corporation may be greater than or equal to the average tax rate of the business.
Which of the following is TRUE about corporate income taxes for 2018? - Answer The
Federal income tax for corporations is an absolute tax, meaning only one tax rate
applies to all levels of taxable income.
Cash flow available to distribute to a corporation's creditors and stockholders, or
whatever is left over after all bills are paid, is termed the: - Answer cash flow from
assets.
Which one of the following is an expense for accounting purposes but is not an
operating cash flow for financial purposes? - Answer Interest expense
Net capital spending: - Answer is equal to zero if the decrease in the net fixed assets is
equal to the depreciation expense.
The River Side Stop has a current market value of $26,400 and owes its creditors
$31,300. What is the market value of the shareholders' equity? - Answer $0
Shareholders' equity = Max [($26,400 − 31,300), 0]
Shareholders' equity = 0
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