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Jackie intends to major in finance and find employment in corporate financial management. As a finance major, Jackie probably will be required to take several courses in:
Akiko is a financial manager. Her job is likely to include which of the following activities?
A)preparing a cash flow analysis
B)preparing financial statements
C)preparing a balance sheet
D)preparing a marketing budget
Which of the following budgets highlights a firm's spending plans for the purchase of major assets?
A)capital budget
B)operating budget
C)cash budget
D)surplus budget
The managers of Seattle Clothing regularly compare their actual profits with the firm's projected profits. When deviations occur, the managers use the feedback to take corrective action when necessary. The management of Seattle Clothing is exercising:
A)financial derivatives.
B)financial control.
C)financial planning.
D)financial budgeting.
Cleveland Wholesale Company wants to improve cash flow from accounts receivable collections. Which of the following strategies would be most likely to help Cleveland achieve this objective?
A)relaxing its credit policy for new customers
B)offering cash discounts to buyers who pay their accounts promptly
C)accepting IOUs from customers who buy in large quantities
D)offering extended payment plans to qualified buyers
The reason that money has a time value is:
A)inflation reduces the value of money over time.
B)that money can earn interest over time.
C)monetary systems tend to become more sophisticated over time.
D)a dollar received today is worth more than a dollar received yesterday.
Tulsa Enterprises has decided to build a $50 million theme park near a large metropolitan area. The company plans to sell shares of ownership to finance the development. Tulsa plans to use ___________ financing for this project.
Michigan Nursery Company offers its customers credit terms of 3/15 net 30. This means that customers can take advantage of a:
A)fifteen percent discount if they pay in three days.
B)three percent discount if they pay in thirty days.
C)three percent discount if they pay in fifteen days.
D)fifteen percent discount if they pay in thirty days.
Jerry is the owner of Tennessee's Treasures, a very successful framing and gift store. Suppliers are anxious to place inventory in Jerry's retail outlet. Some have offered to supply Jerry with their merchandise now, but do not require Jerry to send a payment for up to 60 days. These suppliers are allowing Jerry to take advantage of:
A)residual credit.
B)trade credit.
C)asynchronous credit.
D)LIFO credit.
The interest rate on a long-term loan is based on which of the following factors?
A)the technological environment
B)current government guidelines
C)the general level of market demand
D)the adequacy of the collateral backing the loan

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