TLI-41400 FINAL EXAM REVIEW GUIDE TEST 2024.

TLI-41400 FINAL EXAM REVIEW GUIDE TEST 2024. Financial Manager Goals - CORRECT ANSWER Is to maximize the value of the firm to its owners. ... Such an approach favors making short-term gains over achieving long-term goals. Whats Agency Theory? - CORRECT ANSWER Examines the relationship between the owners of the firm and the managers of the firm. While management has the responsibility for acting as the agent for the stockholders in pursuing their best interests, the key question is, How well does management preform this role? how to calculate gross profit - CORRECT ANSWER Sales - COGS What is an income statement? - CORRECT ANSWER A report of net income or loss over an accounting period What is on an income statement? - CORRECT ANSWER focuses on the four key items - revenue, expenses, gains, and losses. It does not cover receipts (money received by the business) or the cash payments/disbursements (money paid by the business). What is a balance sheet? - CORRECT ANSWER assets, liabilities, stockholders equity Indicates what the firm owns and how these assets are financed in the form of liabilities or ownership interest. Income statements purports to show the profitability of the firm, the balance sheet delineates the firm's holdings and obligations.