FI-354 Posttest

Determining which projects a business should invest in is known as

capital budgeting.

Selling shares in the company to raise money for a new venture is referred to as __________ funding.

equity

The finance function is usually responsible for which of the following processes:

Budgeting

Which of the following is a key component of managing working capital:

Cash conversion cycle

Which of the following is a capital investment decision:

How to finance investments

How does the finance function relate to company spending?

It plans and controls spending.

Which of the following is a measure of how well a business generates cash flow:

Return on capital

Money the business owes is known as

accounts payable.

Money owed to the business is known as

accounts receivable.

Decisions about financing refer to the

acquisition of funds.

The cash conversion cycle should be

as short as possible.

When return on capital is positive, the company is

growing in value.

The finance function ensures that the company's financial goals are

in line with organizational priorities.

To keep communication flowing with other departments, the finance function depends on

information systems.

The administration of assets refers to decisions about

investments.

Finance is the business function that involves managing

money.

The finance function would definitely be involved in a decision regarding

new business projects and strategies.

Accounting is distinct from finance because its main focus is on

recordkeeping activities.

The goals of the finance function are to ensure profitability and

reduce risks.

A company's current balance of assets and liabilities falls under the focus of

working capital management.