Finance For Non-Financial Managers, 7th Canadian Edition Pierre Bergeron) Test Bank

Copyright 2014 Nelson Education Ltd. 1-1 Chapter 1 Overview of Financial Management MULTIPLE CHOICE 1. Which of the following statements describes an activity which is financial management? a. Looking after trade payables and corporate accounting is not a responsibility of the controller . b. Monitoring the profit for the year which is the difference between revenue and gross profit . c. The treasurer raising funds . d. Ensuring that the cost of borrowing is greater than the return on assets . ANS: C PTS: 1 REF: 11 OBJ: LO 2 BLM: Higher Order 2. Which of the following statements describes a financial management activity? a. Arranging internal financing is obtained from banks and investors . b. Ensuring liquidity by managing the payment of dividends . c. Operating decisions dealing with better utilization of non - current assets . d. The stability objective is related to the financial structure of a business . ANS: D PTS: 1 REF: 15 OBJ: LO 4 BLM: Remember 3. Which of the following activities is NOT a financial management function? a. The treasurer is responsible for corporate accounting . b. External financing is obtained from investors . c. Internal financing is obtained from retained earnings