UN- FI-354 Money Matters (Role in Finance)

Question 1

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

Accepted Answer

Cash conversion cycle

Question 2

Money owed to the business is known as

Accepted Answer

accounts receivable.

Question 3

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

Accepted Answer

Budgeting

Question 4

Which of the following is a capital investment decision:

Accepted Answer

How to finance investments

Question 5

Money the business owes is known as

Accepted Answer

accounts payable.

Question 6

The goals of the finance function are to ensure profitability and

Accepted Answer

reduce risks.

Question 7

Determining which projects a business should invest in is known as

Accepted Answer

capital budgeting.

Question 8

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

Accepted Answer

working capital management.

Question 9

When return on capital is positive, the company is

Accepted Answer

growing in value.

Question 10

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

Accepted Answer

information systems.

Question 11

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

Accepted Answer

equity

Question 12

The finance function would definitely be involved in a decision regarding

Accepted Answer

new business projects and strategies.

Question 13

How does the finance function relate to company spending?

Accepted Answer

It plans and controls spending.

Question 14

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

Accepted Answer

Return on capital

Question 15

Decisions about financing refer to the

Accepted Answer

acquisition of funds

Question 16

The cash conversion cycle should be

Accepted Answer

as short as possible.

Question 17

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

Accepted Answer

in line with organizational priorities.

Question 18

The administration of assets refers to decisions about

Accepted Answer

investments

Question 19

Finance is the business function that involves managing

Accepted Answer

money

Question 20

Accounting is distinct from finance because its main focus is on

Accepted Answer

recordkeeping activities.

Questions 20