0 out of 3 points As a short-term credit arrangement, banks sometimes extend _____, which are guaranteed lines of credit in which

the firm pays a commitment fee on unused portions of the funds the bank has committed. Answer Selected Answer: trade credit Correct Answer: revolving credit agreements

Question 2
3 out of 3 points _____ represent(s) funds that arise as a natural result of a firms business operations without the need for special arrangements. Answer Selected Answer: Spontaneous financing Correct Answer: Spontaneous financing

Question 3
3 out of 3 points Capital _____ is the process a firm uses to evaluate long-term investment proposals. Answer Selected Answer: budgeting Correct Answer: budgeting

Question 4
3 out of 3 points Which cash equivalent raises funds by selling shares to large numbers of investors and then pools these funds to purchase short-term, liquid securities?

Answer Selected Answer: money market mutual funds Correct Answer: money market mutual funds

Question 5
3 out of 3 points _____ are short-term, very safe, and highly liquid assets that firms include in the cash holdings they report on their balance sheet. Answer Selected Answer: Cash equivalents Correct Answer: Cash equivalents

Question 6
3 out of 3 points Key numbers that financial managers use to calculate ratios usually come from the firms Answer Selected Answer: balance sheet and income statement. Correct Answer: balance sheet and income statement.

Question 7
3 out of 3 points _____ are short-term IOUs issued by the U.S. government that mature in 4, 13, or 26 weeks. Answer Selected Answer: T-bills

Correct Answer: T-bills

Question 8
3 out of 3 points Financial capital refers to funds a firm would use for all of the following EXCEPT Answer Selected Answer: taking a vacation Correct Answer: taking a vacation

Question 9
3 out of 3 points As part of the financial planning process, planners would create projected financial statements, also known as _____ statements. Answer Selected Answer: pro forma Correct Answer: pro forma

Question 10
3 out of 3 points _____ is the functional area of business that is responsible for finding, among many alternatives, the best sources of funds and the best way to use them. Answer Selected Answer: Finance Correct Answer: Finance

Question 11

3 out of 3 points The _____ summarizes a firms financial position at a specific point in time (i.e., a specific quarter or year). Answer Selected Answer: balance sheet Correct Answer: balance sheet

Question 12
3 out of 3 points Bookkeepers encompass the routine procedures involved in reporting information about the financial transactions that affect an organization, while _____ go further by analyzing and interpreting this information and communicating the results to stakeholders. Answer Selected Answer: accountants Correct Answer: accountants

Question 13
0 out of 3 points The auditors _____ indicate(s) whether the firms financial statements are prepared and presented in a way that is likely to fairly represent the firms financial condition. Answer Selected Answer: letter to the CEO Correct Answer: opinion

Question 14
3 out of 3 points

_____ accountants provide services such as tax preparation, external auditing, or management consulting to clients on a fee basis. Answer Selected Answer: Public Correct Answer: Public

Question 15
3 out of 3 points The major output of financial accounting is a set of statements including the Answer Selected Answer: balance sheet, income statement, and statement of cash flows. Correct Answer: balance sheet, income statement, and statement of cash flows.

Question 16
3 out of 3 points _____ is/are what the firm owes its creditors. Answer Selected Answer: Liabilities Correct Answer: Liabilities

Question 17
3 out of 3 points While _____ is concerned with preparing financial statements for external stakeholders according to a fixed schedule, _____ provides information to internal stakeholders on an as needed basis. Answer Selected Answer: financial accounting; managerial accounting

Correct Answer: financial accounting; managerial accounting

Question 18
3 out of 3 points An auditor issuing a(n) _____ has uncovered serious and widespread problems with the preparation of a firms financial statements. Answer Selected Answer: adverse opinion Correct Answer: adverse opinion

Question 19
3 out of 3 points _____ addresses the needs of the external stakeholders, including stockholders, creditors, and government regulators. Answer Selected Answer: Financial accounting Correct Answer: Financial accounting

Question 20
3 out of 3 points _____ compares information contained in a firms financial statements over a period of two or more years. Answer Selected Answer: Horizontal analysis Correct Answer: Horizontal analysis