Early banking activities in ancientcivilizations included:

Coins made from precious metals

Horizontal Integration allows a company to

Combine with othercompanies in a similar business

Common Stock holders have the right to:

Vote for the members ofthe board of directors

The first step of the personal financial planning process is to:

Determine your current situation

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Business Finance Final Exam Review

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Business Finance Final Exam. This review will serve as your study guide for the exam. Review this Quiz and you will be successful.

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Questions 82

Answers

1
Offers of ownership interest to investors:
Annual Report
Financial Ratios
Financial Leverage
Equity Financing
2
Amounts owed to suppliers and others for items bought on credit:
AccountsReceivable
LiabilityAccounts
CreditCard Accounts
AccountsPayable
3
Commitment to completing all tasks thoroughly and with the highest level of quality:
Due Care
Financial ratios
Chief executive director
Information integrity
4
Unfinished goods used by a manufacturer to create a finished product:
ProposedMaterials
AssociatedMaterials
IndirectMaterials
DirectMaterials
5
Early banking activities in ancientcivilizations included:
Coins made from precious metals
Onlinebanking
Checkingaccounts that earned interest
Creditcards
6
The construction or purchase of long-term assets, such as buildings and equipment
PrimaryProject
ResidualProject
Capital Project
FinancialProject
7
The federal debt security with the longestmaturity is the:
Treasurynote
Treasurybill
Treasury bond
Municipalbond
8
Amounts Owed that need to be paid within the next year:
AccountPayable
AccountsReceivable
CurrentLiabilities
LiabilityAccounts
9
_____________ is an agreement that allows acompany to obtain additional loans without a
MutualFund
Line of Credit
Loan
Allotment
10
Decline in the value of an asset
collateral
time value of money
depreciation
creditor
11
A form that documents each employee’s pay history:
Time-On-ClockHistory
WorkCompensation Record
HourlyWage Record
Payroll Record
12
Situations in which the acceptance of one project does not allow acceptance of others:
ProprietaryProject
Mutually Exclusive Project
PermanentProject
PersonalProject
13
Amount of money borrowed
principal
capital budget
liabilities
trend analysis
14
Items of value in an organization that will likely be converted to cash within a year are:
FinancialAssets
AccountsReceivable Assets
CashControl Assets
Current Assets
15
Horizontal Integration allows a company to
Involved with different stages of production distribution
Combine with othercompanies in a similar business
Reducerisks by selling a wide variety of products
Providelocal managers with decision making authority
16
The interest rate used to evaluate a capital project:
Costof Capital
CapitalExpenditure Budget
Capital Cost Budget
Costof Equity Budget
17
The ability of an organization to meet its financial obligation as they become due
Annual report
Accounting Cycle
Accounting Transaction
Solvency
18
____________ agreement in which a borrowerreceives something of value for a promise to repay
Profit
Credit
Apayment
Acontract
19
To increase the money supply, the Fed would:
Raisethe discount rate
Raise the reserverequirement
Lowerthe discount rate
Sellgovernment securities
20
Which of the following is not considered to be ashort-term credit?
Promissorynote
Commercial paper
Mortgagenote
Lineof credit
21
A tool used for planning cash inflows and outflows
Cash budget
Discretionarybudget
Primarybudget
Secondarybudget
22
A(n) ___________? __________ tax is a common source of revenue for state and local governments:
Sales tax
Municipal
Local
Savings
23
These assets commonly include: trademarks,brand names, copyrights, patents, and software:
Intellectual Property
IntelligentProperty
EntanglementProperty
IntangibleProperty
24
____________ is unsecured, short-term debtinstruments issued by corporations
Liabilities
PromissoryNote
Commercial Paper
RetailLoan
25
A(n) ________? ___________ bond is issued by the state and local governments:
An income
A property
An import
A Sales
26
Amount paid for the privilege of borrowing money
budget discrepancies
assets
interest
balance sheet
27
Common Stock holders have the right to:
Receivepayments before preferred stockholders
Converttheir stock into other types of securities
Vote for the members ofthe board of directors
Receivea set amount of dividends
28
Loans that have no specific collateral
payroll record
working capital
credit terms
unsecured loan
29
The discount rate at which the net present valueis zero:
DiscountRate of Return
ExternalRate of Return
SocialRate of Return
Internal Rate of Return
30
A legal agreement created when one party manageproperty for the benefit of another is:
DebitCard
DirectDeposit
Trust
Safe-depositbox
31
Taxes are collected by the _______? _______ component of a financial system
Government
Agency
Consumer
Business
32
A tool used for planning cash inflows and outflows:
Primarybudget
Discretionarybudget
Secondarybudget
Cashbudget
33
Opportunity cost is sometimes called:
a personal financial goal
all the above
risk management
a trade-off
34
_________ bond allows investors toexchange the bond for common stock in a company:
Debenture
Callable
Convertible
Mortgage
35
A long plan that outlines in broad terms the firms basic strategy for the next 5to 10 years:
PrimaryPlan
StrategicPlan
ProposedPlan
Short-termplan
36
Difference between current assets and current liabilities
finished goods
working capital
variable cost
direct deposit
37
Treasury bills, Treasury notes, and Treasury bonds are issued by the _____ ________:
County
City
Federal
State
38
Uncertainty that an expected profit will not be achieved:
Financial Risk
Stock Market
Resources
Economics
39
Electronic banking service that would beused to transfer funds each month for a mortgage is:
Automatic bill payment
Directdeposit
Prepaiddebit card
Point-of-salepayment
40
Steps completed to ensure the accuracy of accounting records:
Accounting Cycle
Ration Analysis
Information Integrity
Due Care
41
Items in various stages of completion:
Workin Process
Materialsin Process
Analysisin Process
Structuresin Process
42
When creating a national bank, a charter must beobtained from:
The Federal Reserve
Astate banking regulatory agency
TheComptroller of Currency
TheFederal Deposit Insurance Corporation
43
The receptionist of credit is known as the:
Payee
Creditor
Debtor
Customer
44
A Statement of financial performance issued at the end of a fiscal year:
Equities
Information System
Retained earnings
Annual Report
45
The best return that could be earned on assetsa firm already owns
SupplementCost
PrimaryCost
OpportunityCost
AdditionalCost
46
The first step of the personal financial planning process is to:
Review your progress
Determine your current situation
Set financial goals
Create an action plan
47
Investment instrument representing ownership of a debt: Investment instrument
Finance
Liquidity
Bond
Security
48
A company in which decisions are made by top level managers
Centralized
Decentralized
Horizontal
Vertical
49
A system that electronically transfer net pay into an employee’s bank account:
DigitalPayment Wire
WireTransfer
ElectronicTransfer
DirectDeposit
50
Uncertainty that an expected profit will not be achieved:
Capital markets
Foreign Currency
Financial return
Financial risks
51
Interstate commerce refers to business:
In more than one state
In more than one country
In the same city
Within the same year
52
A set of processes, people, and equipment for converting data into information:
Information system
Financial Ratios
Financial Leverage
Operating income
53
Business structure allows company decisions to be made at lower levels
CentralizedOrganization
DecentralizedOrganization
Noneof the Above
PrimaryOrganization
54
Security Representing ownership in a corporation:
Money
Property Tax
Stock
Tax Revenue
55
A dividend paid in the form of additional shareof stock rather than cash
Stock Dividend
Moneydividend
Investmentdividend
Companydividend
56
_____________ is a signed written promise to borrow money between a borrower and a lender:
Lineof Credit
LendingDevice
Promissory Note
CreditAdvance
57
Funds due from a customer:
Discountedpaycheck
SpotRate
Acredit period
Accounts Receivable
58
Best return that could be earned on assets the firm already owns
Opportunity Cost
PrimaryCost
AdditionalCost
SupplementCost
59
A statement of financial performance issued at the end of a fiscal year
financial ratios
operating income
annual report
financial leverage
60
Organization likely to meet local needs of a country improving economic situations would be the
RegionalDevelopment Bank
InternationalMonetary Fund
Organization of EconomicCooperation and Development
WorldBank
61
Net Present Value (NPV) calculates
Value of cash flows for a project minus initial investment.
Noneof the Above.
Amount of money owed to creditors minus liabilities.
Calculates value of investment minus initial investment
62
Established direction for the financial plans of a business
Migos
interest rate
business financial goals
Capital budget
63
Plan that outlines in broad terms the firms basic strategy for the next 5 to 10
Strategic Plan
Short-termplan
PrimaryPlan
ProposedPlan
64
When a company changes the number shares ofstock to bring the market price down
A Stock split
Amutual fund
Aninitial public offering
Sellingshort
65
Which of the following is a responsibility of fiancé rather that accounting?
Information system
Operating income
Financial Leverage
Financial Ratios
66
An example of a commercial banking service is:
Safedeposit box
Anindividual checking account
Ahome equity line of credit
Bridge loan
67
An example of a deposit institution is a:
Advertising
A truck
Commercial Bank
An electric bill
68
An initial public offering refers to:
A company going public
Sellingstock without using an investment banker
Issuingforeign bonds
Doublingthe number of shares of stock
69
Compensation earned by salespeople or others as a percentage of sales:
ComplimentaryFinancing
Commission
Commissary
Commodities
70
Wages or salary along with other financial benefits paid to employees:
Compensation
PieceRate
IndirectCompensation
DirectCompensation
71
______________ is a legal agreement to useproperty that belongs to another person.
Financing
Borrowing
Renting
Leasing
72
To determine an appropriate level of working capital, a company might calculate its:
FiscalFinancial Analysis
CurrentRatio
CapitalFunding
CreditCard Funding
73
The combination of a low cost of capital and maximum market value:
PrimaryResponse Capital Structure
CapitalExpenditure Structure
Noneof the Above
OptimalCapital Structure
74
According to financial theory, the major goal of a business organization should be:
Lowercustomer complaints
HigherSales
Alow level of debt
A high market value
75
Which of the following is NOT a reason credit is marketed so heavily
credit use is not socially accepted in the United States
The credit industry has become extremely profitable
Credit laws in the United States were relax
There is strong consumer demand for big ticket items
76
A common benefit of debt is:
Reducedchance of company bankruptcy
Interest payments reducethe amount of taxes
Lowerrisk than equity
Stockholdersmay not receive their dividends
77
The process of selecting long-term assets, such as equipment and buildings
PrimaryBudgeting
Capital Budgeting
ForecastBudgeting
StateBudgeting
78
An investment that allows a person to own avariety of companies is called
mutual fund
municipalbond
acorporate bond
preferredstock
79
Accounting procedure that recognizes revenues and expenses when they are incurred is known as:
Full disclosure
The Accounting cycle
Accrual accounting
Expense and revenue matching
80
A dividend paid in the form of additional share of stock rather than cash:
StockDividend
Companydividend
Investmentdividend
Moneydividend
81
An expense that has been paid that will not affect capital decisions:
PastCost
FutureCost
PresentCost
Sunk Cost
82
When a company first issues shares of a stock,it is referred to as the _____ market?
Bond
Stock
Primary
Secondary

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