LAP FI-007
When return on capital is positive, the company is
paying out dividends
To keep communication flowing with other departments, the finance function depends on
Information systems
How does the finance function relate to company spending?
It plans and controls spending
Money the business owes is
accounts payable
The cash conversion cycle should be
as short as possible
Determining which projects a business should invest in is known as
capital budgeting
Which of the following is a key component of managing working capital:
cash conversion cycle
The finance function ensures that the company's financial goals are
in line with organizational priorities
The administration of assets refers to decisions about
investments
The finance function would definitely be involved in a decision regarding
new business projects and strategies
The goals of the finance function are to ensure profitability and to
reduce risks
which of the following is a measure of how well a business generates cash flow:
return on capital
A company's current balance of assets and liabilities falls under the focus of
working capital management
Money owed to the business is known as
accounts receivable
Finance is the business function that involves managing
Money
The finance function is usually responsible for which of the following process?
Budgeting
Which of the following is a capital investment decision:
How to finance investments
Decisions about financing refer to the
acquisition of funds
Assets a company already owns and can use to finance a new venture are called
equity
Accounting is distinct from finance because its main focus is on
record keeping activities