Test Bank For Practical Financial Management 8th Edition by William R. Lasher
Test Bank for Practical Financial Management, 8th Edition, by William R. Lasher, is a comprehensive resource that helps students understand the practical aspects of financial management. The test bank includes a collection of multiple-choice, true/false, and short answer questions, which cover topics such as financial statements, time value of money, financial planning, risk and return, and financial markets.
The test bank contains over 1000 questions that are designed to test the knowledge of students and assess their understanding of the concepts covered in the textbook. The questions are arranged by chapter and topic, making it easy for instructors to select questions that are relevant to their teaching and testing objectives.
The questions in the test bank are challenging, and they require students to think critically and apply their knowledge to real-world scenarios. The test bank includes questions that cover the basic concepts of financial management, as well as questions that are more advanced and require a deeper understanding of the subject matter.
Chapter 3 – Cash Flows and Financial Analysis
1. The principal function of financial statements is to:
a. convey information to managers, investors, and creditors.
b. provide benchmark information for projecting the firm’s future performance.
c. inform the firm’s shareholders of its likely prospects for growth and cash flows.
d. All of the above
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.03.01 – Financial Information
NATIONAL STANDARDS: BUSPROG: Analytic – BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Information
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/28/2015 6:52 PM
2. Annual reports are in a sense, evaluations of management’s performance but since they are prepared by management they are likely to:
a. exclude the details of management discussion and analysis.
b. portray the firm’s past performance in a most favorable light.
c. give the shareholders the opportunity to objectively evaluate management’s day-to-day performance during the past year.
d. exclude the details of the minority interests groups.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.03.01 – Financial Information
NATIONAL STANDARDS: BUSPROG: Analytic – BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Information
KEYWORDS: Bloom’s: Comprehension
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/28/2015 6:53 PM
3. Firms sometimes disguise the cost or layoffs and reorganizations that may be attributable to poor management as:
a. continuing operations.
b. unusual activities.
c. restructuring charges.
d. None of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.03.01 – Financial Information
NATIONAL STANDARDS: BUSPROG: Ethics
TOPICS: Financial Information
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/28/2015 6:54 PM
4. The principal function of financial statements is to:
a. convey confidential information to the board of directors.
b. accurately project future cash flows of a company.
c. convey information to outside investors.
d. guarantee an accurate accounting record.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.03.01 – Financial Information
NATIONAL STANDARDS: BUSPROG: Analytic – BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Information
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/28/2015 6:54 PM
5. Free cash flow:
a. includes investing cash flows as well as the financial cash flows.
b. assumes that a company needs a constant asset base.
c. assumes that the firm will remain competitive and continue growing.
d. always includes increases in net fixed assets and in long-term liabilities.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.03.01 – Financial Information
NATIONAL STANDARDS: BUSPROG: Analytic – BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Information
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/28/2015 6:55 PM
6. Accounting and finance each have significant responsibilities related to the firm’s financial performance; however, the accountant’s role is informational, while the financial analyst’s role is critical and investigative. Therefore, we can say that:
a. the accountant’s job stops at the presentation of information.
b. the analyst must rely on the accountant to assist in analyzing the financial statements because the accountant is more familiar with their content.
c. the financial analyst assesses the information presented in the accountant’s financial statements to seek out problems and their ramifications for the firm.
d. financial analysts qualified to practice as CPAs may undertake both responsibilities and eliminate any overlap of similar tasks.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.03.01 – Financial Information
NATIONAL STANDARDS: BUSPROG: Analytic – BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: Financial Information
KEYWORDS: Bloom’s: Comprehension
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/28/2015 6:56 PM
7. Dividend payments are categorized as:
a. cash flow from operating activities.
b. cash flow from investment activities.
c. cash flow from financing activities.
d. All of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.03.02 – The Statement of Cash Flows
NATIONAL STANDARDS: BUSPROG: Analytic – BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: The Statement of Cash Flows
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/28/2015 6:57 PM
8. Changes to net working capital are categorized as:
a. cash flow from operating activities.
b. cash flow from investment activities.
c. cash flow from financing activities.
d. None of the above
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: FINA.LASH.17.03.02 – The Statement of Cash Flows
NATIONAL STANDARDS: BUSPROG: Analytic – BUSPROG: Analytic skills: Statistics and Management Science
TOPICS: The Statement of Cash Flows
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 5/26/2015 8:56 AM
DATE MODIFIED: 6/28/2015 6:58 PM
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