TEST FIN2603 - SESSION 1 2023/2024

The principles of business finance are quite different from the principles of personal finance.

• TRUE

• FALSE

Financing activities are transactions involving externals sources of funding.

• TRUE

• FALSE

The responsibility of financial managers to allocate funds to current assets only.

• TRUE

• FALSE

Maximizing the price of a share of the firm's common share is the equivalent of maximizing the wealth of the firm's present owners.

• TRUE

• FALSE

The "new issues market" -- where first-time security issues are offered for sale -- is called the secondary market.

• TRUE

• FALSE

The goal of working capital management is to ensure that there is adequate cash flow for operations with the most productive use of resources.

• TRUE

• FALSE

Firm holding cash to avail the benefit of bargain purchases that may arise in the future call as precautionary motive.

• TRUE

• FALSE

Day sales outstanding is measuring the average length of time it takes a firm’s customers to pay off their credit purchases.

• TRUE

• FALSE

Inventories are stocks of goods and materials that are maintained for many purposes.

• TRUE

• FALSE

Inventory carries its greatest costs after value has been added through manufacturing and processing.

• TRUE

• FALSE