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.